Corruption in Zimbabwe has cost the country at least $20bn in “disappeared” rough diamonds, according to veteran economist and former member of parliament Eddie Cross.
He accuses the late Robert Mugabe, who served as prime minister from 1980 to 1987, of personally helping himself to $1.3bn of diamonds.
“We still suffer from massive leakages of economic output and income,” Cross, 84 (pictured), writes on his website, in a blog entry that pulls no punches and which has been widely reported in Zimbabwe’s media.
“When I was in parliament in 2012, I raised the wholesale theft of diamonds from the newly discovered Marange diamond fields,” he says.
“These covered nearly 100,000 hectares and in that year I estimated that we produced more carats than Botswana.”
Production from the Marange alluvial deposit started in 2006, after De Beers discovered diamond reserves, and continues today.
“It was taken over illegally by the Ministry of Mines and then exploited by six companies, all linked to powerful elements in the government, including the state president,” he writes.
“My personal estimate is that Marange has produced nearly $30bn in raw diamonds since then. A third was probably absorbed in costs but the rest has disappeared.
“Mr Mugabe famously asked where US$15bn had gone since mining had started. He knew the answer to that as I think he personally took $1.3bn.”
He alleges widespread corruption in every sector of government activity.
“It is well known that in certain ministries if you want a decision of any sort, you have to pay for it. I was approached by a senior civil servant for a bribe to sign a letter, I said but surely that is your job.
“I was told ‘do you think we do this sort of thing for nothing?’ I did not pay the bribe and did not get the letter.
He goes on to say: “This scrouge soon also infects the private sector. The statement by the Dubai Gold Exchange that in 2023 they bought nearly 450 tonnes of gold from informal origins in Africa. That is $32bn worth, a third from Zimbabwe. No wonder we are awash in US dollars in cash.”
Nita Ambani was a vision of opulence, literally studded in diamonds! Yes, you read that right. The grooms mother is renowned for her extravagant taste in jewels, showcasing an array of rubies, emeralds, and sapphires. But her love for these gems doesn’t stop at just necklaces; she seamlessly integrates them into her hair and clothing as well. On Sunday, the Ambani family hosted a grand reception to continue the celebrations of Anant Ambani and Radhika Merchant’s wedding, which kicked off with a spectacular ceremony on Friday, July 12. The Mumbai event was a glittering affair, with family members like Mukesh, Nita, Akash, and Isha Ambani in attendance, alongside a host of Bollywood and international celebrities.
Nita Ambani never fails to make a fashion statement, and her latest appearance at the reception was nothing short of spectacular. With her saree adorned in exquisite jewels and draped with unparalleled elegance, she once again proved her status as a fashion icon.
The indictment of former Brazilian President Jair Bolsonaro for money laundering and criminal association in connection with undeclared diamonds from Saudi Arabia marked the far-right leader’s second formal accusation, with more potentially in store.
The indictment on Thursday by Federal Police, confirmed by two officials with knowledge of the case, followed another formal accusation in March against Bolsonaro, for allegedly falsifying his COVID-19 vaccination certificate. Both officials spoke on condition of anonymity because they were not authorized to speak publicly.
Once Brazil’s Supreme Court receives the police report with the latest indictment, the country’s prosecutor-general, Paulo Gonet, will analyze it and decide whether to shelve it, ask for additional police investigation or file charges and force Bolsonaro to stand trial.
It’s still early to say how likely the last option is, but the police indictment already marked a turning point in the case, said legal expert Renato Stanziola Vieira, president of the Brazilian Institute of Criminal Sciences.
Former Brazilian President Jair Bolsonaro talks with supporters during his arrival to the international airport in Brasilia, Brazil
It dramatically raises the legal threats facing the divisive ex-leader that are applauded by his opponents but denounced as political persecution by his supporters.
Bolsonaro did not immediately comment, but he and his lawyers have previously denied any wrongdoing in both those cases, as well as in other investigations. One is probing his possible involvement in inciting a January 2023 uprising in the capital of Brasilia that sought to oust his successor from power.
Last year, Federal Police accused Bolsonaro of attempting to sneak in diamond jewelry reportedly worth $3 million and selling two luxury watches.
Police said in August that Bolsonaro received cash from the nearly $70,000 sale of two luxury watches he received as gifts from Saudi Arabia. Brazil requires its citizens arriving by plane from abroad to declare goods worth more than $1,000 and, for any amount above that exemption, pay a tax equal to 50% of their value.
The jewelry would have been tax exempt had it been a gift from Saudi Arabia to Brazil, but not Bolsonaro’s to keep for himself.
The investigation showed that Mauro Cid, Bolsonaro’s former aide-de-camp who allegedly falsified his COVID-19 records, sold a Rolex watch and a Patek Philippe watch to a store in the U.S for a total $68,000 in June 2022. They were gifted from the Saudi government in 2019. Cid later signed a plea bargain with authorities, confirming his actions.
Flávio Bolsonaro, the former president’s eldest son and a sitting senator, said on X after Thursday’s indictment that persecution against his father was “blatant and shameless.”
In addition to Jair Bolsonaro, police indicted 10 others, including Cid and two of his lawyers, Frederick Wassef and Fábio Wajngarten, according to one of the officials. Wassef said in a statement that he didn’t have access to the final report of the investigation, and decried selective leaks to the media of a supposedly sealed investigation.
“I am going through all of this solely for practicing law in defense of Jair Bolsonaro,” Wassef said.
Wajngarten said on X that police found no evidence implicating him. “The Federal Police knows I did nothing related to what they are investigating, but they still want to punish me because I provide unwavering and permanent defense for former President Bolsonaro,” he said.
Vieira, the legal expert, told The Associated Press over the phone, that he doubts Bolsonaro and the others would be tried.
“I see necessary criminal prosecution and necessary investigation of the facts.,” he said. “I’m even curious about Flávio Bolsonaro’s statement because these facts have been under investigation for some time.”
Jair Bolsonaro retains staunch allegiance among his political base, as shown by an outpouring of support in February, when an estimated 185,000 people clogged Sao Paulo’s main boulevard to protest what the former president calls political persecution.
His critics, particularly members of his rival President Luiz Inácio Lula da Silva’s political party, have cheered every advance of investigations and repeatedly called for his arrest.
The 69-year-old former army captain started his political career as a staunch advocate of Brazil’s military dictatorship, and was a lawmaker for nearly three decades. In his first bid for the presidency, in 2018, he was widely dismissed as an outsider and too radically conservative.
But he won a decisive victory, partly because he cast himself as an upstanding citizen following a sprawling corruption probe that ensnared hundreds of politicians and executives.
In his early days in office, Bolsonaro insulted adversaries and garnered criticism for his divisive policies, attacks on the Supreme Court and efforts to undermine health restrictions during the pandemic. In 2022, he lost his reelection bid in what was the closest vote finish since Brazil’s return to democracy in 1985.
Carlos Melo, a political science professor at the Insper University in Sao Paulo, said he doubts Brazil’s Supreme Court and the judge overseeing several investigations targeting Bolsonaro, Alexandre de Moraes, will risk sending the former president to prison or imposing other harsh measures.
The objective, Melo said, is to avoid instigating supporters of the far-right leader in a year of mayoral elections.
“Moraes and his fellow justices know that prosecuting a former president who remains a popular man would be even tougher in a year like this,” Melo said. “This indictment is another piece of the puzzle. It gives one more problem to Bolsonaro. There will be more.”
Last year, Brazil’s top electoral court ruled that Bolsonaro abused his presidential powers in the 2022 reelection bid, which rendered him ineligible to run in any elections until 2030 after he used the state television, government and the presidential palace officials, claiming to foreign ambassadors that the country’s electronic voting system was rigged.
Letšeng is the world’s highest dollar per carat diamond mine.
Gem Diamonds has announced the recovery of a 123.2 carat type 11 white diamond at its Letšeng mine in Lesotho.
This is the eighth greater than 100 diamond found at the operation in 2024, the company said.
Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. Boart diamonds are stones of low quality that are used in powder form as an abrasive.
The prolific Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.
The Letšeng mine is famous for the production of large, exceptional white quality diamonds, making it the highest dollar per carat kimberlite mine in the world, Gem said.
Sanctioned Russian diamond miner Alrosa has concluded the purchase of a gold mine in the far east of the country and will invest $276m developing it.
The move comes seven months after the G7 and EU countries introduced the first phase of restrictions on the import of Russian diamonds.
Alrosa’s subsidiary, Almazy Anabara company, has bought 100 per cent of the Degdekan gold ore field in the Magadan region, according to a report by Russia’s Interfax news agency, from Polyus the country’s largest gold producer (also sanctioned).
Alrosa, the state-run miner, already has some gold mining operations, with an output of around 180kg annually.
But this marks a significant expansion, with the projected production of 3.3 tons from 2030.
In 2015 Russia’s State Reserves Commission said the deposit had reserves of 38.3 tonnes of gold.
“The development of the gold deposit will provide an additional synergistic effect for Alrosa’s business and will help increase its financial stability in the long term,” Alrosa CEO Pavel Marinychev said in a statement.
Alrosa sold $4bn of diamonds globally in 2022. The G7 nations, which are now blacklisting its diamonds, account for 70 per cent of diamond purchases worldwide.
In the first five months of the year, imports of Russian diamonds to Hong Kong increased 18-fold year on year, according to data from Hong Kong’s Statistics Bureau published on its official website on June 30.
Hong Kong has dramatically stepped its imports of diamonds from Russia, purchasing $657.3mn worth of Russian diamonds in the first five months of 2024.
In the period from January to May 2024, Hong Kong’s imports of Russian diamonds soared from $36.5mn a year earlier to $657.3mn. As a result, Russia has become the third-largest supplier of diamonds to Hong Kong, with its share of total diamond imports rising to 12% from just 1% in 2023.
India remains the leading supplier of diamonds to Hong Kong, with imports valued at $2.9bn, followed by Israel with $716.6mn. Notably, both India and Israel, unlike Russia, do not mine diamonds themselves.
The substantial increase in Hong Kong’s diamond imports from Russia highlights a significant shift in the global diamond market. Dubai has also become a major market for the trade in Russian diamonds.
As bne IntelliNews reported, the EU included sanctions on Russian diamond exports as part of the twelfth sanctions package, but due to intensive lobbying by Belgium, where Antwerp is the leading European diamond market and the number-one destination for rough diamonds from Russian miner Alrosa, the sanctions were watered down and will be phased in gradually.
Russian diamond sanctions watered down again
Afraid of losing the diamond business completely to the growing rival markets in Asia and the Middle East, the EU has watered down the restrictions on trading Russian diamonds again last week.
The EU has extended the “sunrise period” for sanctions on Russian diamonds by six months and included an important concession for goods that predate the new rules, according to a statement released by the EU on June 24.
The EU also said the update “fine-tunes” the import ban on Russian diamonds included in the twelfth package and is included as part of the fourteenth sanctions package. Earlier in June, De Beers called for a one-year extension to the sunrise period for the G7 sanctions on Russian diamonds, but it is up to the individual countries to rule on the implementation of the ban.
The mandatory traceability programme for imports of rough and polished natural diamonds will now take effect on March 1, 2025 instead of September 1, 2024. This extension is intended “to allow more time to set up the G7 traceability scheme,” the EU explained reports Rapport.
This decision comes in response to calls from diamond trading powerhouse De Beers and other industry leaders to extend the interim period during which importers can use alternative documentation to prove that diamonds are not of Russian origin. Once this period ends, importers into the EU must use a traceability-based certification scheme to verify imports of diamonds over 0.50 carats.
Additionally, the EU has introduced a “grandfathering” clause to exempt diamonds that were already located in the EU or a third country other than Russia – or were manufactured in a third country – before the new rules were implemented. The EU ban on direct imports of diamonds from Russia began on January 1, 2024, while the ban on goods processed outside Russia started on March 1, 2024.
The EU said that these pre-existing diamonds no longer provide revenue to Russia.
“We are extremely pleased that, after months of intense negotiations, we have succeeded in pushing the needle to allow regularisation of so-called ‘grandfathered stock,’” said the Antwerp World Diamond Centre (AWDC). “Sanctioning these goods and prohibiting their trade would impose an unfair and severe financial burden on diamond companies without significantly impacting Russia’s revenues.”
The extension and concession aim to balance the need for stringent sanctions with the “practical realities of the diamond industry,” providing additional time and clarity for businesses to adapt to the new regulations.
Moreover, temporary imports or exports of jewellery, for example for trade fairs or repairs, will not fall under the ban. In addition, the EU has delayed the prohibition on jewellery incorporating Russian diamonds processed in third countries until the European Council, the EU’s executive arm, “decides to activate” it, the EU statement said.
The US currently has the strictest limits on Russian trade, requiring self-certification for diamonds of 1 carat or lower, falling to 0.50 carats on September 1. Larger diamonds are not covered by the sanctions.
Botswana’s economy contracted by the most since the peak of the pandemic in early 2020, after diamond production plunged.
Gross domestic product shrank an annual 5.3% in the first quarter, compared with growth of 1.9% in the prior three months.
The downturn was primarily influenced by a decrease in real value added of the diamond traders and mining & quarrying industries of 46.8% and 24.8% respectively, Statistics Botswana said in a report Friday.
Botswana is the world’s largest producer of rough diamonds by value, with the revenues making up the bulk of the southern African country’s budget receipts. The decline is likely to make meeting its fiscal targets for this year difficult. The central bank already warned last week that the government would probably miss its economic growth forecast of 4.2% because of weaker mining output.
The global diamond industry almost came to a standstill in the second half of last year as De Beers and Russia’s Alrosa PJSC — the two biggest miners — all but stopped supplies in a desperate attempt to stem a slump in prices. That hit earnings at De Beers, which mines more than three-quarters of its diamonds in Botswana.
Earlier this year De Beers said it expects any recovery in the beleaguered diamond market to be slow and gradual as the industry continues to suffer from weak economic growth in key markets such as China and the US.
Petra Diamonds revised on Thursday its guidance for the next two fiscal years and appointed a new finance leader as part of its plans to lower expenses and debt in a clear sign the diamond market remains in bad shape.
The South African miner had anticipated in December that the sector was beginning to recover. Six months later, Petra has instead cut its production targets. It now expects to produce between 2.8 million and 3.1 million carats in fiscal 2025 and between 2.9 million and 3.3 million in fiscal 2026. This represents a reduction of 18% and 19%, respectively, on the prior target-ranges’ midpoint.
The company also said it expected total carat recovery to be at the lower end of its target range of 2.74 million to 2.78 million for the current fiscal year.
These downgrades, announced in an investor day presentation, coincide with Petra’s plan to reduce operating costs by $30 million annually starting in the fiscal year that ends on June 30, 2025. Total capital spending will be reduced this year to $100 million from the total spent in 2023, which was $117.1 million.
“We have worked hard to deliver an updated business profile in response to ongoing market challenges and to further enhance our resilience to future market and capital cycles,” chief executive Richard Duffy said in a statement.
Petra’s revisions come just a day after the world’s largest diamond producer by value, De Beers, posted disappointing results for its latest sales for the second time this year, and as Anglo American (LON: AAL) plans to sell it off.
New CFO
Petra announced it had appointed Johan Snyman to take on the role of chief financial officer starting from October 1. Snyman will replace Jacques Breytenbach, who will leave his position as CFO and director at the end of September due to personal reasons.
“[Snyman] has played a crucial part in the progress of Petra since joining in January, and I am excited to collaborate with him in his new capacity,” Duffy said.
The new CFO joined Petra this year as financial controller, having worked as vice president for financial reporting at AngloGold Ashanti (NYSE: AU). He has also previously held various financial roles in the mining sector.
Expansions unaffected
Despite the challenging market, Petra remains committed to expanding its Finsch and Cullinan mines in South Africa, it said, and it is projecting production to reach between 3.4 to 3.7 million carats by 2028.
Cullinan is Petra’s flagship mine and the source iconic diamonds, including the famed 3,106-carat Cullinan diamond, which was cut to form the 530-carat Great Star of Africa. They are the two largest diamonds in the British Crown Jewels.
The Cullinan mine is also a source of rare blue diamonds.
Petra’s planned output increase, equivalent to 15% to 17% over three years, will require about $100 million annually. Duffy stated the plans will be financed internally.
Cullinan mine-life can be potentially extended beyond 2048. Finsch, South Africa’s second largest diamond operation by output, could be producing until around 2038.
Shares in Petra experienced high volatility in London after the announcements and were last down 1.96% to 40 pence. This leaves the miner with a total market capitalization of £78.63 million (about $100m).
Naturally fluorescing rough diamond parcel from the Gahcho Kué mine. Credit: Mountain Province Diamonds
De Beers Group and Mountain Province Diamonds announced that their joint venture Gahcho Kué diamond mine has surpassed the C$2 billion spending threshold with Northwest Territories and Indigenous business.
The milestone represents 61% of the total C$3.2 billion spent on the project since 2015 when construction began. Local businesses supply welding, transportation logistics, trucking, passenger and cargo flights, labour, and camp catering. The venture has a stated goal of sourcing at least 60% of its requirements for the project from local businesses.
According to the NWT Bureau of Statistics, diamond mining is the largest contributor to the territory’s gross domestic product – C$588 million out of C$4.25 billion in 2023.
Key elements of the economic contribution of the Gahcho Kué mine include:
Gahcho Kué has a tiered contracting structure that gives preference to Indigenous and NWT businesses. Since 2006, C$5.3 billion has been spent with local and Indigenous business in the Northwest Territories and northern Ontario by Gahcho Kué and De Beers Group’s wholly owned Snap Lake (NWT) and Victor (Ontario) mines. (Snap Lake and Victor are now in active closure). In 2023, 69% of the Gahcho Kué mine spend was with NWT and Indigenous companies, totalling C$228 million, the highest amount spent with NWT businesses since construction. In 2023, C$90 million was spent with companies operated by the mine’s impact benefit agreement (IBA) communities. From 2006 to 2023, Gahcho Kué and Snap Lake mines have contributed a combined C$26.5 million in social investment within the NWT. Gahcho Kué has also made significant payments to Indigenous communities in terms of six IBAs and has paid resource royalties to the government of the NWT. Gahcho Kué was officially opened in 2016 and now provides 663 full-time equivalent jobs, including 245 jobs held by NWT residents.
The mine is located about 280 km northeast of Yellowknife, NWT, on the traditional territories of Tlicho, Dene and Metis peoples. De Beers is the 51% owner and operator. Mountain Province retains the remaining 49%.
In 2023 the project mined 3.3 million tonnes of kimberlite and recovered nearly 5.6 million carats (on a 100% basis). Guidance for 2024 is 4.2 million to 4.7 million carats.
Lucapa today (25 June) announced the sale of its 70 per cent stake in the Mothae mine, in Lesotho, to a local contractor for a nominal sum.
The Australian miner said it wanted to to focus on its core assets in Africa, where it has a 40 per cent stake in the Lulo alluvial mine, in Angola, and in Australia.
Mothae has produced over 150,000 carats since it started commercial production in 2019, bringing in more than $100m in revenue.
Lucapa says it will sell its stake in stake in Mothae Diamonds (Pty) Ltd to Lephema Executive Transport (Pty) Ltd, which has provided it with long-term contract mining services, for A$10,000 (US$6,660).
Mothae Diamonds, which owns the site, will pay Lucapa A$1m (US$666,000) in outstanding technical services payments.
“This agreement is the result of a period of offer and negotiation involving Lucapa and several interested parties,” said Lucapa managing director and CEO Nick Selby.
“(Lephema) Executive has a successful history with the Mothae Diamond Mine, having provided long-term contract mining services. Lucapa wanted to, as far as possible, see
this mine continue to operate and Executive are best placed to achieve this.
“The signing of this agreement is a key step towards Lucapa streamlining its portfolio and executing the new strategy which will focus on assets in Australia and Angola”.
Mothae has indicated resources of 180,000 carats and inferred resources of 960,000 carats, according to December 2023 figures provided by Lucapa, with a modelled per carat value of $606.
Lucapa said in its sales material that Mothae has recovered 13 +100ct diamonds (largest Type IIa gem 213cts), and 10 diamonds valued at over $1m.
