India Trade Urged to Freeze Rough Imports

India’s leading diamond-trade organizations have called on members to stop importing rough for at least a month to prevent an oversupply and ensure banks maintain their credit to the sector.

Companies should consider pausing rough imports from May 15 for a minimum of 30 days, according to a letter from the Gem & Jewellery Export Promotion Council (GJEPC) and four other industry bodies, seen by Rapaport News.

The move — which would be voluntary on the part of the importers — would help the trade recover from the COVID-19 crisis by avoiding a flood of rough entering the pipeline, the letter explained. It would also show lenders that the trade is willing to minimize its debts, thereby dissuading them from slashing credit.

“Such import stoppage will help the industry face the challenge that has arisen out of turmoil in the global gems and jewelry market,” the groups said in their plea to the trade Wednesday. It was signed by heads of the GJEPC, the Bharat Diamond Bourse in Mumbai, the Mumbai Diamond Merchants Association, the Surat Diamond Bourse, and the Surat Diamond Association.

India’s polishing sector and diamond trade are shut until May 3 at the earliest due to a nationwide lockdown aimed at containing the coronavirus. As it stands, any rough that enters India would remain in inventory until business reopens. Meanwhile, closures of retail and trading centers around the world have obliterated polished demand, putting severe pressure on the Indian industry.

The groups that signed the letter have met with leading diamond exporters and other prominent trade members to explore steps to minimize the impact of the downturn. They have also written to the Indian government to inform it of the “precarious” state of the country’s gem and jewelry industry, they said. The GJEPC and the trade will review the matter in the second week of June to decide if further action is necessary.

Source: DCLA

India Trade Urged to Freeze Rough Imports

India’s leading diamond-trade organizations have called on members to stop importing rough for at least a month to prevent an oversupply and ensure banks maintain their credit to the sector.

Companies should consider pausing rough imports from May 15 for a minimum of 30 days, according to a letter from the Gem & Jewellery Export Promotion Council (GJEPC) and four other industry bodies, seen by Rapaport News.

The move — which would be voluntary on the part of the importers — would help the trade recover from the COVID-19 crisis by avoiding a flood of rough entering the pipeline, the letter explained. It would also show lenders that the trade is willing to minimize its debts, thereby dissuading them from slashing credit.

“Such import stoppage will help the industry face the challenge that has arisen out of turmoil in the global gems and jewelry market,” the groups said in their plea to the trade Wednesday. It was signed by heads of the GJEPC, the Bharat Diamond Bourse in Mumbai, the Mumbai Diamond Merchants Association, the Surat Diamond Bourse, and the Surat Diamond Association.

India’s polishing sector and diamond trade are shut until May 3 at the earliest due to a nationwide lockdown aimed at containing the coronavirus. As it stands, any rough that enters India would remain in inventory until business reopens. Meanwhile, closures of retail and trading centers around the world have obliterated polished demand, putting severe pressure on the Indian industry.

The groups that signed the letter have met with leading diamond exporters and other prominent trade members to explore steps to minimize the impact of the downturn. They have also written to the Indian government to inform it of the “precarious” state of the country’s gem and jewelry industry, they said. The GJEPC and the trade will review the matter in the second week of June to decide if further action is necessary.

Source: DCLA

De Beers Makes Dramatic Cut to Production Plan

De Beers has reduced its full-year production guidance by 7 million carats, putting the miner on course for its lowest output since 2009. 

The miner expects to produce between 25 million and 27 million carats in 2020, compared to the 32 million to 34 million in its original projection, it said Thursday. The revised forecast for 2020 was due to the impact of the COVID-19 pandemic on mining activity and consumer traffic in key markets, the miner noted.

Rough-diamond production for the first quarter of 2020 slipped 1% to 7.8 million carats, roughly in line with the previous year. However, the coronavirus shutdown measures were not implemented at the miner’s sites until the end of the period, and had a limited impact on output, De Beers said.

Sales volume rose 19% to 8.9 million carats for the three months ending March 31. The increase was due to a favorable comparison with the same period the previous year, when demand was weak due to an oversupply of polished stones in the manufacturing sector. Additionally, the decline in demand caused by the pandemic — during which De Beers allowed customers to defer some of their allocations to the second quarter — was offset by higher appetite for lower-value goods, the company noted.

Production in Botswana declined 5% to 5.6 million carats, with diamond recovery at De Beers’ Orapa mine falling 7% as result of challenges in commissioning new plant infrastructure. Output at Jwaneng slipped 4% due to a planned shift to lower-grade ore.

Production in Namibia grew 6% to 511,000 carats, and in South Africa jumped 97% to 751,000 carats, as the final ore from the company’s open-pit operations at Venetia was mined prior to the transition to underground.

Output in Canada slid 19% to 844,000 carats, primarily due to the closure of the Victor mine, which reached its end of life in the second quarter of 2019. Output from Gahcho Kué, which the company owns in partnership with Mountain Province, rose 4% to 844,000 carats.

The first quarter featured two sales cycles, with proceeds falling 9% to $906 million. Demand reached a near-yearlong high in January, but fell again in February as the coronavirus began to spread. The company was forced to cancel its third site, which was due to begin at the end of March.

In 2009, the company slashed production by 49% to 24.6 million carats for the year when the global economic slowdown hit diamond demand. 

Source: DCLA

De Beers Makes Dramatic Cut to Production Plan

De Beers has reduced its full-year production guidance by 7 million carats, putting the miner on course for its lowest output since 2009. 

The miner expects to produce between 25 million and 27 million carats in 2020, compared to the 32 million to 34 million in its original projection, it said Thursday. The revised forecast for 2020 was due to the impact of the COVID-19 pandemic on mining activity and consumer traffic in key markets, the miner noted.

Rough-diamond production for the first quarter of 2020 slipped 1% to 7.8 million carats, roughly in line with the previous year. However, the coronavirus shutdown measures were not implemented at the miner’s sites until the end of the period, and had a limited impact on output, De Beers said.

Sales volume rose 19% to 8.9 million carats for the three months ending March 31. The increase was due to a favorable comparison with the same period the previous year, when demand was weak due to an oversupply of polished stones in the manufacturing sector. Additionally, the decline in demand caused by the pandemic — during which De Beers allowed customers to defer some of their allocations to the second quarter — was offset by higher appetite for lower-value goods, the company noted.

Production in Botswana declined 5% to 5.6 million carats, with diamond recovery at De Beers’ Orapa mine falling 7% as result of challenges in commissioning new plant infrastructure. Output at Jwaneng slipped 4% due to a planned shift to lower-grade ore.

Production in Namibia grew 6% to 511,000 carats, and in South Africa jumped 97% to 751,000 carats, as the final ore from the company’s open-pit operations at Venetia was mined prior to the transition to underground.

Output in Canada slid 19% to 844,000 carats, primarily due to the closure of the Victor mine, which reached its end of life in the second quarter of 2019. Output from Gahcho Kué, which the company owns in partnership with Mountain Province, rose 4% to 844,000 carats.

The first quarter featured two sales cycles, with proceeds falling 9% to $906 million. Demand reached a near-yearlong high in January, but fell again in February as the coronavirus began to spread. The company was forced to cancel its third site, which was due to begin at the end of March.

In 2009, the company slashed production by 49% to 24.6 million carats for the year when the global economic slowdown hit diamond demand. 

Source: DCLA

JCK Las Vegas Canceled for 2020

The 2020 JCK Las Vegas and Luxury shows have been canceled, the events’ organizer has confirmed, as the coronavirus continues to sweep across the globe.

“This decision was made in response to the unprecedented challenges faced by JCK’s jewelry community,” Sarin Bachmann, Reed Jewelry Group’s vice president for the shows, said Tuesday. “We know [it] impacts the entire industry and it was not made lightly.”

The main JCK Las Vegas trade fair was originally scheduled to begin June 2, while its sister event, Luxury, was due to start on May 31. Reed Exhibitions said last month that it was planning to postpone both events to an undetermined later date. However, the organizer has now confirmed that the next editions will take place at the Venetian Resort & Sands Expo in June 2021.

Reed Jewelry Group will host a remote event called JCK Virtual 2020 this summer, it said, noting it was “creating other virtual tools to assist jewelry professionals.” These will supplement the online education and webinars that it has already launched to address challenges related to the coronavirus.

In addition, the organizer said JCK exhibitors would have the opportunity to participate in JIS October, which is slated to run from October 13 to 16 in Miami.

“We will continue to listen to our customers and to facilitate the personal and business connections that our industry is built on, so we can all evolve and emerge stronger and better-connected than ever,” Bachmann added.

Source: DCLA

JCK Las Vegas Canceled for 2020

The 2020 JCK Las Vegas and Luxury shows have been canceled, the events’ organizer has confirmed, as the coronavirus continues to sweep across the globe.

“This decision was made in response to the unprecedented challenges faced by JCK’s jewelry community,” Sarin Bachmann, Reed Jewelry Group’s vice president for the shows, said Tuesday. “We know [it] impacts the entire industry and it was not made lightly.”

The main JCK Las Vegas trade fair was originally scheduled to begin June 2, while its sister event, Luxury, was due to start on May 31. Reed Exhibitions said last month that it was planning to postpone both events to an undetermined later date. However, the organizer has now confirmed that the next editions will take place at the Venetian Resort & Sands Expo in June 2021.

Reed Jewelry Group will host a remote event called JCK Virtual 2020 this summer, it said, noting it was “creating other virtual tools to assist jewelry professionals.” These will supplement the online education and webinars that it has already launched to address challenges related to the coronavirus.

In addition, the organizer said JCK exhibitors would have the opportunity to participate in JIS October, which is slated to run from October 13 to 16 in Miami.

“We will continue to listen to our customers and to facilitate the personal and business connections that our industry is built on, so we can all evolve and emerge stronger and better-connected than ever,” Bachmann added.

Source: DCLA

Ernie Blom Steps Aside as President of WFDB

Ernest “Ernie” Blom, who has served as president of the World Federation of Diamond Bourses for the last eight years, has temporarily resigned from the post.

Yoram Dvash, the president of the Israel Diamond Exchange and a member of the group’s executive committee, was elected as the global group’s acting president during a Zoom meeting with the WFDB’s executive committee.

A letter from Blom, obtained by JCK, said that due to “personal reasons,” he was “unfortunately temporarily unable to continue in office as President.… Therefore, I need to step aside for a period of a time.”

The news comes as Blom’s company, Ernest Blom Diamonds, is engaged in litigation with a WFDB-member bourse, the Dubai Diamond Exchange (DDE), in a dispute over the jurisdiction of an arbitration.

Blom’s claim, filed Jan. 28 in the court of first instance in Dubai, United Arab Emirates, asks that a DDE arbitration award dated Dec. 12 be ruled “void and of no effect.” It asks that the dispute between Blom and three companies be subject to the rules of South Africa and that the arbitration award not be publicized.

Marc De Block, Blom’s lawyer in Antwerp, Belgium, where a similar complaint has been filed, writes via email that it is “regrettable” that Blom had to file the suit but felt he had no choice.

“Mr. Blom has always served and protected the interests of the diamond industry, and this time is no different. Essentially, Mr. Blom was treated very unfairly by the DDE, and I leave it up to the DDE to defend their actions in a court of law…. While the DDE is well aware to have committed very grave errors against my client, and even explicitly acknowledged this, they stubbornly refuse to correct such actions.”

The Dubai Diamond Exchange did not return requests for comment by  publication time.

Blom tells JCK that while the suit probably “played a role” in his stepping aside, he also felt that it was time to move on. He notes that he has now served close to five two-year terms as WFDB president—he also held the job from 2006 to 2008—making him the longest-serving president in the group’s history. He adds that he had planned to step down as president at this year’s Congress in Hong Kong, which is currently still scheduled to be held in November.

“There comes a time when I need to be moving on to other interests,” he says. “I put my heart and soul into the WFDB, and I’m very proud of the legacy I have left.”

His successor, Dvash (pictured below), had been spearheading the new Get Diamonds exchange the group plans to unveil this month, in a challenge to the RapNet platform.

Acting World Federation of Diamond Bourses president Yoram Dvash

“Our industry changed so much,” Dvash tells JCK. “The world is changing, and we have to make huge adjustments. We have a lot to do.”

He hopes to increase initiatives with other groups and mining companies.

“All of us have to work together,” he says. “Alone, we are not strong. We need leadership to bring everyone forward. I believe in this industry. I believe we have a future.”

He also paid tribute to Blom, saying, “He’s a great guy. He put a lot of years into the federation. I wish him all the best.”

Source: DCLA

Ernie Blom Steps Aside as President of WFDB

Ernest “Ernie” Blom, who has served as president of the World Federation of Diamond Bourses for the last eight years, has temporarily resigned from the post.

Yoram Dvash, the president of the Israel Diamond Exchange and a member of the group’s executive committee, was elected as the global group’s acting president during a Zoom meeting with the WFDB’s executive committee.

A letter from Blom, obtained by JCK, said that due to “personal reasons,” he was “unfortunately temporarily unable to continue in office as President.… Therefore, I need to step aside for a period of a time.”

The news comes as Blom’s company, Ernest Blom Diamonds, is engaged in litigation with a WFDB-member bourse, the Dubai Diamond Exchange (DDE), in a dispute over the jurisdiction of an arbitration.

Blom’s claim, filed Jan. 28 in the court of first instance in Dubai, United Arab Emirates, asks that a DDE arbitration award dated Dec. 12 be ruled “void and of no effect.” It asks that the dispute between Blom and three companies be subject to the rules of South Africa and that the arbitration award not be publicized.

Marc De Block, Blom’s lawyer in Antwerp, Belgium, where a similar complaint has been filed, writes via email that it is “regrettable” that Blom had to file the suit but felt he had no choice.

“Mr. Blom has always served and protected the interests of the diamond industry, and this time is no different. Essentially, Mr. Blom was treated very unfairly by the DDE, and I leave it up to the DDE to defend their actions in a court of law…. While the DDE is well aware to have committed very grave errors against my client, and even explicitly acknowledged this, they stubbornly refuse to correct such actions.”

The Dubai Diamond Exchange did not return requests for comment by  publication time.

Blom tells JCK that while the suit probably “played a role” in his stepping aside, he also felt that it was time to move on. He notes that he has now served close to five two-year terms as WFDB president—he also held the job from 2006 to 2008—making him the longest-serving president in the group’s history. He adds that he had planned to step down as president at this year’s Congress in Hong Kong, which is currently still scheduled to be held in November.

“There comes a time when I need to be moving on to other interests,” he says. “I put my heart and soul into the WFDB, and I’m very proud of the legacy I have left.”

His successor, Dvash (pictured below), had been spearheading the new Get Diamonds exchange the group plans to unveil this month, in a challenge to the RapNet platform.

Acting World Federation of Diamond Bourses president Yoram Dvash

“Our industry changed so much,” Dvash tells JCK. “The world is changing, and we have to make huge adjustments. We have a lot to do.”

He hopes to increase initiatives with other groups and mining companies.

“All of us have to work together,” he says. “Alone, we are not strong. We need leadership to bring everyone forward. I believe in this industry. I believe we have a future.”

He also paid tribute to Blom, saying, “He’s a great guy. He put a lot of years into the federation. I wish him all the best.”

Source: DCLA

De Beers Pauses Botswana Mining

De Beers’ mining operations in Botswana have been on hold for more than two weeks amid a national lockdown, the company told Rapaport News.

Debswana, the company’s joint venture with the government, paused activities on April 2 when the coronavirus-related restrictions began, a De Beers spokesperson said Friday. The miner had not previously disclosed its full response to the Botswana lockdown, and will publish an updated production forecast in its operational results this Thursday.

Operations at Debswana are currently limited to essential services, with a small number of staff members still working.

De Beers’ current production outlook for 2020 is 32 million to 34 million carats — a plan that’s been in place since December, when it reduced its guidance due to inventory rebalancing taking place in the industry. It had previously expected to unearth between 33 million and 35 million carats for the year.

Botswana initially instituted a 28-day lockdown, and later extended the state of emergency for six months. Mining has received the status of an essential service, De Beers noted, adding that it was discussing how it could restart operations with health precautions in place.

“Debswana has been engaging with key stakeholders and considering the appropriate recommencement of operations, albeit at a significantly reduced level,” a company spokesperson said.

The country is De Beers’ largest source of rough diamonds, with the Jwaneng and Orapa deposits last year contributing 23.3 million carats of its global output of 30.8 million carats. The pandemic also forced it to cancel its March-April sight in Gaborone, the capital, as buyers were unable to attend or ship goods.

De Beers has also reduced the number of workers at Venetia, its only mine in South Africa, by 75% in response to a lockdown there. In addition, the company has introduced precautions at its Gahcho Kué mine in Canada’s Northwest Territories, including changing workers’ shift patterns to minimize travel.

Source: DCLA

De Beers Pauses Botswana Mining

De Beers’ mining operations in Botswana have been on hold for more than two weeks amid a national lockdown, the company told Rapaport News.

Debswana, the company’s joint venture with the government, paused activities on April 2 when the coronavirus-related restrictions began, a De Beers spokesperson said Friday. The miner had not previously disclosed its full response to the Botswana lockdown, and will publish an updated production forecast in its operational results this Thursday.

Operations at Debswana are currently limited to essential services, with a small number of staff members still working.

De Beers’ current production outlook for 2020 is 32 million to 34 million carats — a plan that’s been in place since December, when it reduced its guidance due to inventory rebalancing taking place in the industry. It had previously expected to unearth between 33 million and 35 million carats for the year.

Botswana initially instituted a 28-day lockdown, and later extended the state of emergency for six months. Mining has received the status of an essential service, De Beers noted, adding that it was discussing how it could restart operations with health precautions in place.

“Debswana has been engaging with key stakeholders and considering the appropriate recommencement of operations, albeit at a significantly reduced level,” a company spokesperson said.

The country is De Beers’ largest source of rough diamonds, with the Jwaneng and Orapa deposits last year contributing 23.3 million carats of its global output of 30.8 million carats. The pandemic also forced it to cancel its March-April sight in Gaborone, the capital, as buyers were unable to attend or ship goods.

De Beers has also reduced the number of workers at Venetia, its only mine in South Africa, by 75% in response to a lockdown there. In addition, the company has introduced precautions at its Gahcho Kué mine in Canada’s Northwest Territories, including changing workers’ shift patterns to minimize travel.

Source: DCLA

Alrosa achieves good first-quarter sales, maintains diamond output guidance

Russia-based diamond miner Alrosa produced eight-million carats of diamonds and sold 9.4-million carats in the first quarter of the year.

The company generated sales revenues of $904-million from rough and polished diamonds.

This was despite diamond production seasonally declining by 9% quarter-on-quarter, although year-on-year diamond production growth was 2%. The year-on-year growth was supported by increased production at the company’s Jubilee pipe, as well as at the Aikhal and international underground mines.

Alrosa says the average realised prices for gem-quality diamonds in the first quarter was $123/ct, which was down 17% quarter-on-quarter and flat year-on-year.

The company maintains its full-year production guidance of 34.2-million carats, but says sales volumes will depend on the Covid-19 epidemiological situation and respective measures taken globally.

Alrosa says the diamond industry started the year off in good shape as consumer sentiment had improved across key markets for diamond jewellery, while inventories at the midstream had normalised and polished diamond prices began to recover.

However, following closures of markets in China and Hong Kong in February, and then later in Europe and the US, demand started to weaken.

Alrosa says it might need to update its production and prices data during the year, depending on what happens in the market.

Source: miningweekly

Alrosa achieves good first-quarter sales, maintains diamond output guidance

Russia-based diamond miner Alrosa produced eight-million carats of diamonds and sold 9.4-million carats in the first quarter of the year.

The company generated sales revenues of $904-million from rough and polished diamonds.

This was despite diamond production seasonally declining by 9% quarter-on-quarter, although year-on-year diamond production growth was 2%. The year-on-year growth was supported by increased production at the company’s Jubilee pipe, as well as at the Aikhal and international underground mines.

Alrosa says the average realised prices for gem-quality diamonds in the first quarter was $123/ct, which was down 17% quarter-on-quarter and flat year-on-year.

The company maintains its full-year production guidance of 34.2-million carats, but says sales volumes will depend on the Covid-19 epidemiological situation and respective measures taken globally.

Alrosa says the diamond industry started the year off in good shape as consumer sentiment had improved across key markets for diamond jewellery, while inventories at the midstream had normalised and polished diamond prices began to recover.

However, following closures of markets in China and Hong Kong in February, and then later in Europe and the US, demand started to weaken.

Alrosa says it might need to update its production and prices data during the year, depending on what happens in the market.

Source: miningweekly

Alrosa implements guidance to avoid conflict diamonds

Russia’s Alrosa, the world’s top diamond miner by volume, announced that it will start implementing the OECD due diligence guidance for responsible supply chains of minerals from conflict-affected and high-risk areas.

In a press release, the company said that to improve the efficiency of this work and guarantee compliance, it has launched an internal diamond supply chain management system. The mechanism is based on the Regulations on Responsible Diamond Supply Chain Management recently approved by its executive committee.

According to Alrosa, the internal diamond tracking and traceability system applies to all the segments of the diamond supply chain. It allows the firm to provide its clients with the information not only on the country of origin but the region of origin of its rough and polished diamond production.

The system also guarantees that rough diamonds produced by Alrosa in different regions are not mixed in the process of sorting, valuation, cutting and polishing, and trading.

“As part of Alrosa obligations as a certified RJC member, we are very proud to launch our tailored diamond supply chain due diligence system,” Peter Karakchiev, head of international relations, said in the media brief.

“It marks the start of a process which we believe will positively contribute to ensuring that all Alrosa diamonds are produced in compliance with the high standards of responsible business conduct.”

Source: DCLA

Alrosa implements guidance to avoid conflict diamonds

Russia’s Alrosa, the world’s top diamond miner by volume, announced that it will start implementing the OECD due diligence guidance for responsible supply chains of minerals from conflict-affected and high-risk areas.

In a press release, the company said that to improve the efficiency of this work and guarantee compliance, it has launched an internal diamond supply chain management system. The mechanism is based on the Regulations on Responsible Diamond Supply Chain Management recently approved by its executive committee.

According to Alrosa, the internal diamond tracking and traceability system applies to all the segments of the diamond supply chain. It allows the firm to provide its clients with the information not only on the country of origin but the region of origin of its rough and polished diamond production.

The system also guarantees that rough diamonds produced by Alrosa in different regions are not mixed in the process of sorting, valuation, cutting and polishing, and trading.

“As part of Alrosa obligations as a certified RJC member, we are very proud to launch our tailored diamond supply chain due diligence system,” Peter Karakchiev, head of international relations, said in the media brief.

“It marks the start of a process which we believe will positively contribute to ensuring that all Alrosa diamonds are produced in compliance with the high standards of responsible business conduct.”

Source: DCLA