The Infinite Blue: The Extraordinary Story Behind a $25 Million Blue Diamond

 

Rare blue diamond from South Africa’s Cullinan Mine demonstrates why colour, origin and rarity can transform a diamond into a global treasure

Few diamonds capture the imagination quite like a natural Fancy Vivid blue diamond. In 2023, one of the most remarkable examples in recent years the 11.28-carat Infinite Blue attracted worldwide attention when Sotheby’s Hong Kong offered it as a single-lot auction.

The diamond carried an ambitious pre-sale estimate of US$26 million to US$37 million, reflecting its extraordinary colour, size, provenance and rarity. However, the final result demonstrated just how unpredictable the market for exceptional coloured diamonds can be: the Infinite Blue sold for approximately US$25.3 million, below its low estimate.

A diamond born at the Cullinan Mine

The Infinite Blue has an exceptional pedigree.

Its rough origin was the famous Cullinan Mine in South Africa, operated by Petra Diamonds. Cullinan is internationally recognised as one of the world’s most important sources of natural blue diamonds and has produced some of the most celebrated diamonds ever offered at auction.

The Infinite Blue was cut from a 25.75-carat rough blue diamond, the largest stone in Petra’s Letlapa Tala collection. That collection itself was sold by Petra in 2020, and the rough was subsequently transformed into the polished 11.28-carat gem.

The transformation from rough to polished diamond illustrates one of the fundamental challenges of exceptional coloured diamonds: cutters must balance weight retention with the optimisation of colour, brilliance, proportions and overall appearance.

Why is a blue diamond so rare?

Blue diamonds occupy a very special position in the world of natural diamonds.

Unlike most colourless diamonds, where nitrogen is an important factor in colour, the blue colour in natural Type IIb diamonds is associated with the presence of boron within the diamond’s crystal structure.

The Infinite Blue is classified as a Type IIb diamond, a category representing an exceptionally small proportion of natural diamonds. Petra describes Type IIb diamonds as among the rarest stones recovered from the Cullinan Mine.

Its Fancy Vivid Blue colour grade is equally significant. In the world of coloured diamonds, the intensity and distribution of colour can have an enormous influence on value.

This is why two diamonds of similar size can have dramatically different market values.

The significance of 11.28 carats

There is also a deliberate piece of symbolism in the Infinite Blue’s final weight.

The diamond weighs 11.28 carats, with the number eight incorporated into its final carat weight. Eight is widely regarded as an auspicious number in Chinese and other Asian cultures, where it is associated with prosperity and good fortune.

There is another connection: when the number eight is turned on its side, it resembles the mathematical symbol for infinity.

That symbolism inspired the name Infinite Blue and added an element of cultural meaning to an already extraordinary gemstone.

What makes the Infinite Blue different?

According to published gemological information, the diamond is a Fancy Vivid Blue, VS2-clarity, radiant-cut diamond. Its combination of colour, size and natural origin puts it into an exceptionally small group of diamonds.

The distinction between colour grade and clarity is particularly important when assessing coloured diamonds.

With colourless diamonds, clarity can have a major influence on value. With strongly coloured diamonds, however, colour intensity, hue, saturation and distribution can be fundamental drivers of rarity and price.

This is one reason coloured diamonds require specialised knowledge when they are being evaluated.

Joining an extraordinary group

The Infinite Blue also belongs to a remarkable family of large blue diamonds associated with the Cullinan Mine.

The mine has produced several diamonds that have achieved extraordinary prices at international auctions.

Among them are:

• The Oppenheimer Blue — 14.62 carats, sold for approximately US$57.5 million in 2016.
• The De Beers Blue — 15.10 carats, sold for approximately US$57.5 million in 2022.
• The Infinite Blue — 11.28 carats, sold for approximately US$25.3 million in 2023.

Another famous Cullinan blue diamond, the Blue Moon of Josephine, weighs 12.03 carats and achieved US$48.5 million at auction in 2015.

These stones demonstrate an important fact about the diamond market: rarity does not automatically translate into a predictable price.

Auction values depend on a combination of factors including colour, clarity, size, cut, provenance, market conditions, collector demand and the circumstances of the sale.

A lesson in diamond valuation

The Infinite Blue is an excellent example of why a diamond’s value cannot be determined simply by multiplying carat weight by a price per carat.

A natural Fancy Vivid blue diamond of more than 10 carats belongs to an entirely different market from an ordinary commercial diamond.

Its value is influenced by a complex combination of:

Natural origin + colour + intensity + size + clarity + cut + provenance + rarity + market demand.

For consumers and collectors, this reinforces the importance of independent gemological assessment and accurate documentation when dealing with significant diamonds.

Nature creates the rarity — expertise reveals it

The Infinite Blue ultimately sold for less than its original estimate, but the auction result did little to diminish the gemological importance of the stone.

What makes diamonds such as the Infinite Blue fascinating is that their story begins millions and often billions of years before they ever reach an auction room.

A combination of geological conditions, trace elements, crystal structure and extraordinary rarity created the blue colour. Human expertise then transformed an unusual piece of rough into a polished gemstone capable of commanding more than US$25 million.

For the diamond industry, stones such as the Infinite Blue provide an important reminder that the true value of a rare diamond lies not simply in its size, but in the combination of characteristics that make that particular stone unique.

At DCLA, we believe that understanding those characteristics is fundamental to understanding diamonds themselves.

De Beers Slashes Diamond Prices and Reshapes Its Elite Buyer Network

 

The global diamond industry may have reached a major turning point.

De Beers has implemented some of the largest official rough diamond price reductions in its modern history while simultaneously removing almost one-third of its exclusive group of authorised buyers. The move represents a dramatic shift in strategy after years of attempting to keep official prices well above prevailing market levels.

For the diamond trade, manufacturers and retailers, this is more than simply a pricing adjustment it is a clear acknowledgement that market forces can no longer be ignored.

Official Prices Finally Catch Up With Reality

For much of the past three years, De Beers resisted cutting its published rough diamond prices despite a sharp fall in global demand.

Instead, the company quietly sold selected goods through confidential discounted transactions while maintaining higher official prices to preserve confidence throughout the industry.

That approach has now come to an end.

During its July 2026 sales cycle, De Beers made sweeping reductions across nearly every category of rough diamonds. Industry sources indicate that some categories had previously been priced between 5% and 50% above equivalent goods trading in the secondary market.

The latest reductions bring De Beers’ official pricing much closer to actual market values.

Although the company has declined to comment publicly on the exact reductions, the changes are widely regarded as some of the deepest official price cuts ever made by the company.

Understanding the Sightholder System

To appreciate why these price cuts are so significant, it is important to understand how De Beers sells its diamonds.

Unlike many commodities, rough diamonds are not sold on open exchanges.

Instead, De Beers operates through its long-established Sightholder System, a carefully selected network of approved companies invited to purchase rough diamonds directly from the miner.

These companies attend ten scheduled “sights” each year.

At each sight, buyers are offered parcels or “boxes” of rough diamonds at fixed prices determined by De Beers. There is generally little or no room for negotiation. Buyers may accept or decline the allocation, but historically repeated refusals risked losing their coveted sightholder status.

For decades, this system allowed De Beers to exercise remarkable control over the supply of rough diamonds entering the global manufacturing pipeline.

By carefully managing both supply and pricing, the company was able to influence the broader diamond market more effectively than almost any other mining company.

Fewer Buyers, Greater Concentration

The July 2026 sight is also the first held under newly negotiated supply agreements.

Perhaps the biggest structural change is the reduction in De Beers’ exclusive buyer network.

The number of authorised sightholders has been reduced from around 70 companies to approximately 45–50.

The objective is straightforward.

De Beers wants a smaller group of financially stronger customers capable of purchasing larger volumes while maintaining long-term commitments to the business.

The company believes concentrating sales among its strongest clients should reduce the number of diamonds being immediately resold into secondary markets, where discounted trading has undermined official pricing for several years.

In theory, fewer buyers should allow De Beers to exercise tighter control over the distribution of rough diamonds.

However, the strategy also carries greater risk.

With fewer customers, De Beers becomes increasingly dependent upon the financial health of each remaining sightholder. Should several major buyers reduce purchases or encounter financial difficulties, there are fewer alternative customers available to absorb production.

Why Is De Beers Changing Strategy?

The decision reflects several years of mounting pressure across the global diamond industry.

China, once one of the world’s fastest-growing luxury jewellery markets, has experienced a significant slowdown in consumer spending. Demand for diamond jewellery has weakened substantially, removing one of the industry’s largest growth engines.

At the same time, laboratory-grown diamonds have become increasingly popular, particularly in the bridal jewellery sector, where consumers can purchase much larger stones at a fraction of the price of natural diamonds.

The market has also faced increased competition from additional rough diamond supply entering global markets from countries including Angola.

Adding further uncertainty have been ongoing geopolitical tensions, US trade tariffs and slowing global economic growth, all of which have reduced consumer confidence in luxury spending.

Together, these factors have produced one of the deepest and longest downturns the diamond industry has experienced in decades.

Less Transparency Than Before

Ironically, while prices have become more market-driven, pricing transparency has actually decreased.

Earlier this year De Beers introduced a new “one-line invoicing” system.

Rather than providing detailed prices for each category of rough diamonds within a parcel, buyers now receive a single combined total for the entire box.

At the same time, the company has altered the composition of many assortments.

These changes make it difficult for manufacturers and market analysts to determine exactly how much individual categories of diamonds have increased or decreased in value.

This reduced transparency makes independent price analysis significantly more challenging than under the previous system.

A Business Preparing for Sale

The pricing changes also arrive during a crucial period for parent company Anglo American.

Since May 2024, Anglo American has been working to divest De Beers as part of a broader restructuring programme following years of declining profitability.

Potential buyers continue to evaluate the world’s most famous diamond producer while the company attempts to stabilise earnings and restore confidence throughout the market.

Resetting prices closer to genuine market levels may ultimately make De Beers a more commercially attractive business by reducing the disconnect between official pricing and actual trading conditions.

What It Means for the Diamond Industry

De Beers’ latest decisions signal more than a temporary response to weak trading conditions.

They represent a recognition that the natural diamond market has fundamentally changed.

The company appears to be abandoning a long-standing strategy of defending premium pricing in favour of allowing market realities to shape official valuations.

Whether these changes successfully restore confidence remains to be seen.

For manufacturers, wholesalers and retailers, pricing that more accurately reflects real market conditions may improve margins and encourage renewed trading activity.

For consumers, however, the changes are unlikely to produce dramatic retail price reductions in the short term, as jewellery prices are influenced by manufacturing costs, branding, retail margins and consumer demand as much as the price of rough diamonds themselves.

What is clear is that De Beers has entered a new chapter one where flexibility, commercial realism and supply discipline are becoming more important than maintaining the appearance of price stability.

Disclaimer: This article is provided for general information and industry commentary only. It does not constitute financial, investment or professional advice. Market conditions, diamond prices and industry developments may change without notice. Readers should undertake their own research or seek independent professional advice before making any commercial or investment decisions.

Source: DCLA

De Beer’s 1873 Diamond, Still in Kimberlite

 

An extremely rare relic from the earliest years of the Kimberley diamond rush – a rough stone, still embedded in kimberlite – sold at auction in London for £10,500 ($14,000).

It dates back to the New Rush at Colesberg Kopje (now better known as the Kimberley mine), in South Africa that began when diamonds were first discovered there in 1871.

Furlong Auction House, at the London Diamond Bourse, in Hatton Garden, included it in a collection of “rare and highly desirable items across jewellery history” in its Collectables & Memorabilia auction on 8 January.

“This hand specimen of kimberlite (“blue ground”) contains a visible natural diamond crystal embedded in the matrix and retains its original manuscript presentation label dated May 23rd, 1873,” it said in the lot notes.

“The handwritten note – both on the specimen itself and on a later transcribed slip – reads: “Rev’d W. Thompson – A token of esteem from the Cong’l Church, De Beers New Rush, May 23, 1873. M.M.S., Sec’y.”

It said surviving labelled geological specimens from this period – especially with an exposed diamond crystal – were exceptionally scarce.

Source: DCLA

De Beers Rough Sales Triple in Q3

De Beers sold $700m worth of rough diamonds across its two sights in the three months to 30 September – more than tripling the $213m recorded during the same period last year.

In the third quarter of 2024, the company held only one sight, having cancelled the August session due to weak demand.

During the Q3 2025 sights, specific assortments were offered at discounted prices. De Beers no longer provides sight by sight updates.

It noted that trading conditions “continued to be challenging,” although consumer demand for natural diamond jewelry remained broadly stable, particularly in the US.

The company said progress seen in the first half of 2025 was hindered by newly imposed US tariffs on diamond imports from India, according to its production report published on 28 October.

However, it welcomed the recent exemption granted for natural diamond imports from countries participating in “aligned partner” trade agreements, announced last month.

Meanwhile, quarterly production increased year-on-year by 38 per cent, to 7.7m carats, although it is down 5 per cent for the year to date (17.9m carats).

Production guidance for 2025 is unchanged at 20 to 23m carats.

Source: IDEX

Petra to Refinance as Sales Slide by a Third

Petra Diamonds has announced plans for a major refinancing program – together with a 33 per cent slide in revenue for FY2025.

The UK-based miner, which has recently sold off two of its four diamond mines, is facing substantial financial and operational challenges.

It is proposing an extension of senior secured bank debt and notes due early next year to 2029 and 2030 respectively, together with a $25m rights issue.

The moves are designed to preserve cash, extend debt repayment timelines, and ensure Petra can continue investing in its two remaining core mines – Cullinan and Finsch, both in South Africa.

Petra’s latest sales results, published on the same day (8 August) as its refinancing package, show some positive momentum in the market with like-for-like rough diamond prices from its latest tender, but revenue for Q4 was down 49 per cent year-on-year to $50m.

Revenue for FY2025 was $206m, down 33 per cent year-on-year from $309m and net debt increased to $264m.

“We would once again like to acknowledge the resilience shown by our employees in navigating a very difficult period for the company and the diamond sector as whole,” the company said in its Q4 and FY 2025 Operating Update.

Meanwhile, in its refinancing proposal Petra said: “Petra has, over the past 18 months, been focused on an internal restructuring that has resulted in a simpler and more streamlined business and operating model.

“This has included the sale of the Koffiefontein and Williamson mines, multiple labour restructuring initiatives and an optimisation and smoothing of the group’s capital development profiles.”

Source: DCLA

Petra Diamonds hits all-time low as cash burn continues

Petra Diamonds is to begin discussions with financiers on refinancing a $273m bond that matures in March next year amid scepticism that the company will survive the event.

The ratings agency S&P last week downgraded the company’s credit to CCC on the increased likelihood of default, and maintained a negative outlook.

Shares in the company fell 10% today shortly after the company posted its third quarter results. Petra is now trading at a fresh all-time low and is valued at only £34m on the London Stock Exchange.

While its remaining two assets – the Cullinan and Finsch mines in South Africa – had a solid three months operationally, with a quarter to go, full year guidance has been maintained at 2.4 to 2.7 million carats.

However, the company is still burning cash.

Petra drew on a further $33m as consolidated net debt increased to $258m as of end-March, which the company put down to working capital requirements.

The truth is that the company is desperately in need of improved diamond prices, which have continued to trough this year amid economic uncertainty generated by US President Donald Trump’s on-off tariff regime.

Petra said in April that it had postponed the sale of about 200,000 carats of diamonds from the Cullinan mine near Pretoria because of the “considerable diamond market uncertainty caused by the US tariffs announcement”.

“S&P believes the company faces mounting liquidity challenges amid uncertainty regarding the recovery of the rough diamond market and approaching debt maturities in 2026, with increased likelihood of default – including distressed exchange or debt restructuring – over the next 12 months, if Petra is unable to refinance its debt maturities on time,” said analysts at Berenberg Bank in a note last week.

Commenting on the third quarter results – in which revenue fell to $42m from $106m in the comparative quarter last year (buoyed by sales from a deferred tender) – interim joint CEOs Vivek Gadodia and Juan Kemp, said Petra had experienced “a very difficult diamond market”.

They added: “We believe the steps we have taken over the past 12 months position Petra well for a successful refinancing. We will now look to commence engagements with our lenders on the refinancing of our debt maturing in early 2026.”

Source:miningmx.com

Anglo American writes down value of diamond firm De Beers by $2.9bn

The world’s biggest diamond miner, De Beers, cost its parent company almost $3bn last year as the growth in lab-grown stones continues to take the shine off the industry.

Anglo American was forced to write down the value of the renowned gem producer for a second consecutive year as its chief executive admitted the diamond markets had proved “really, really difficult for the company”.

Duncan Wanblad, the chief executive of Anglo American, added that its plan to shrug off De Beers as part of a radical strategy to dismantle parts of the 108-year-old group – which coined the slogan “a diamond is forever” in 1947 – may be delayed.

He added that the FTSE 100 company did not expect “much traction or progress” on its plans to spin off De Beers in the first half of the year, which could be via a trade sale or a listing via an IPO or demerger, but it might “pick up” towards the end of the year.

Diamond prices have slumped over the past decade because of the rising popularity of cheaper, lab-grown versions and a slowdown in consumer spending in China.

In response, Anglo has taken impairments of $2.9bn on De Beers last year, after a $1.6bn writedown of the company in its annual results last year. This drove Anglo to a $3.1bn net loss in 2024, from a $283m profit the previous year.

The latest writedown of De Beers, which once controlled 90% of the world’s diamond market, means the company is now valued at $4bn.

Anglo laid bare the ongoing losses at De Beers after setting out a plan last year to sell the diamond business as part of a historic corporate overhaul to defend the company against a £34bn takeover plot by the Australian miner BHP.

Anglo hopes to guard the company against further unsolicited advances from BHP, which attempted to force the board to offload two Johannesburg-listed subsidiaries, the platinum miner Amplats and the iron ore miner Kumba, in order to complete a takeover.

Wanblad said the company had received unsolicited interest in the diamond business but a formal process had not started. At least part of the company is expected to be purchased by the government of Botswana, which hosts many of the company’s diamond mines.

Source: Theguardiam

De Beers Finds High-Potential Kimberlite Sites in Angola

De Beers says it has identified eight new high-potential kimberlite sites in Angola, according to the Portuguese news agency Lusa.

It resumed explorations in the country in 2022, after a 10-year gap, and signed a memorandum of understanding (MoU) in February with Angola’s National Mineral Resource Agency, and its state-owned mining and trading companies, Endiama and Sodiam.

Aerial surveys by De Beers have so far identified eight sites in Lunda Sul, the northeastern province that is home to the huge Catoca mine. De Beers is now exploring six more areas, together with Endiama.

Angola has yet to explore 60 per cent of its diamond-rich territories. It opened its new Luele diamond mine last November, in a move that is forecast to increase annual production from 9.7m carats in 2023 to 14.6m carats this year.

Under the terms of the MoU there will be a review of kimberlite deposits to be explored and the transparency and traceability of diamond production will be promoted.

Source: IDEX

Revenue Slump as Petra Defers Sales

Petra reported a revenue slump for Q1 2025 after deferring the sale of almost all its South African goods because of persistent weak demand.

The UK-based miner said its only revenue for the quarter ending 30 September was $8.5m for an 18.85-carat blue diamond recovered at Cullinan Mine, South Africa, and $14m for goods from its Williamson mine, in Tanzania.

Total revenue for the quarter, including profit share arrangements, was $23m, down 77 per cent compared to Q1 FY 2024 and 80 per cent compared to Q4 2024.

Petra said its combined tenders 1 and 2, which took place this month, after the end of Q1, brought in $76m.

Average per carat prices were up 13 per cent to $113, compared to the last tender it held, in June. But like-for-like prices were down 9 per cent. Higher prices were due to a better product mix. The company said it had withdrawn 88,000 carats (worth around $3m) of brown goods because of poor demand.

“Our combined first and second tenders indicate continued weakness in the rough diamond market, more than offset by Petra’s product mix,” said CEO Richard Duffy in the Q1 FY 2025 operating update and final sales results for Tenders 1 and 2 FY 2025.

He said Petra was further reviewing cash generation opportunities in the face of ongoing market weakness and a stronger rand.

“We remain committed to our target of net cash generation for the full year in FY 2025,” he said.

“We continue to expect prices to show some improvement in CY 2025, with market fundamentals being supportive in the medium-to-longer term.”

Source: DCLA

De Beers Group Managed Operations

The global supply of natural diamonds has already peaked, according to Moses Madondo, CEO of De Beers Group Managed Operations. Speaking at the Joburg Indaba, a major mining and resources conference in South Africa, he explained that production is on the decline, with several mine closures on the horizon and no significant new discoveries in sight.

Madondo highlighted that this limited supply could push diamond prices higher. “Since the turn of the century, we’ve only seen one major commercial discovery, the Luele mine in Angola, where we aim to start production by the 2030s. But on a broader scale, global diamond production is set to decline,” he said. This trend, while concerning from a supply perspective, offers the potential for price growth.

In the short term, Madondo expects production to dip, but he anticipates a recovery after 2025, driven by the Luele mine ramping up and South Africa’s Venetia mine shifting to underground operations. However, the looming closure of Canada’s Diavik mine in 2026 and the shutdown of several mines in Russia will further tighten supply.

De Beers cut diamond production

In a significant move, the world’s largest diamond mining company by value has announced further production cuts, adding to its already implemented plan to curtail output by 10 percent. This decision led to a 15 percent year-on-year decline in second-quarter production, dropping to 6.4 million carats, as reported in an update on Thursday.

The potential sale or listing of De Beers was a crucial component of Anglo’s broader strategy to fend off a £39 billion takeover bid from industry giant BHP earlier this year. However, the ongoing slump in the diamond market poses a challenge to achieving this goal by the end of 2025.

“Trading conditions became more challenging in the second quarter as Chinese consumer demand remained subdued,” stated Duncan Wanblad, Anglo’s chief executive.

High inventories for diamond traders and manufacturers, coupled with expectations of a slow recovery, have prompted the company to consider further production cuts. This strategy aims to manage working capital and preserve cash amid the tough market conditions.

The prospect of deeper production cuts comes as the company disclosed the impact of other setbacks in its second-quarter production update, which had been anticipated by analysts.

Anglo has downgraded its full-year guidance for metallurgical coal from 15-17 million tonnes to 14-15.5 million tonnes following a fire at its Grosvenor mine in Australia, which has been out of action for months. Costs for the coal business are also expected to rise significantly this year, estimated at $130 to $140 per tonne, up from $115 per tonne.

The company is prioritising the sale of its metallurgical coal division due to strong buyer interest, with plans to divest De Beers, its platinum unit, and nickel operations to follow.

Additionally, an impairment on the Woodsmith fertiliser mine in North Yorkshire, UK, is expected in the upcoming half-year results, as spending on the project is drastically cut back as part of the turnaround plan.

Despite these challenges, shares in Anglo rose by 2 percent in early trading in London on Thursday, buoyed by production results for most commodities exceeding consensus analyst forecasts. The company achieved record second-quarter iron ore production in Brazil and is on track to meet its guidance for the copper unit.

Wanblad reaffirmed his commitment to streamlining the company to focus on just copper, iron ore, and fertiliser within 18 months. “We are working at pace to execute on the asset divestments, including steelmaking coal,” he said. “Work is progressing with the aim of substantively completing this transformation by the end of 2025.”

Source: DCLA

Petra Diamonds cuts targets and costs in tough market

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. 

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.

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.

39.34-carat blue diamond at Cullinan mine

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).

Source: DCLA

Diamond Leader De Beers Will Be Sold If BHP Acquires Anglo American

BHP’s share-swap take over bid for arch-rival Anglo American to create a $185 billion mining giant will struggle to succeed, but if it does there is one arm of the target certain to be sold, the De Beers diamond business.

Despite its century-old reputation and claim to be the custodian of the diamond industry De Beers has become more trouble than it’s worth, under attack from two directions.
Demand for diamonds is being battered by global economic uncertainty while the problem of slowing sales is being supercharged by the increasing popularity of lab-grown gems which are indistinguishable from mined diamonds.

A third factor which could seal the fate of De Beers is that BHP quit the diamond industry a decade ago after struggling to mix mining, and its basic function of heavy-duty earthmoving, with the fine art of producing and marketing baubles for the rich and newlyweds.

It could get worse for the diamond mining business because prices for lab-grown gems are continuing to fall as a market split widens. High-value jewels remain of interest to a handful of wealthy people, while the lion’s share of the market shifts to lab-grown.

De Beers, which was a pioneer in the business of lab-grown gems via its Lightbox subsidiary, has consistently played down the threat to its traditional mined-diamond business but sustaining that argument became a little harder on Tuesday when it reported a big production fall in the March quarter.

The 23% drop in output caused Anglo American to lower its full year diamond production target from between 29 million and 32 million carats to between 26-and-29 million carats.

Management blamed the decline on the effect of a build-up of inventory of unsold stones with lab-grown gems cannibalising demand for mined stones.

Forbes Daily: Join over 1 million Forbes Daily subscribers and get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.It Could Get A Lot Worse
It could get a lot worse if a recent study of the diamond market by a specialist London jewelry firm is a guide.

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According to Hatton Jewels, which specialises in handling antique second-hand gems and does not sell lab-grown gems, some lab-grown diamonds are spectacular overpriced with retailers inflating their prices by as much as 1200%.

Rachel Smith, head valuer at Hatton said that in the current landscape, every business pays a similar wholesale price for lab-grown diamonds, regardless of disparities in their retail market value.

“The wholesale price of lab-grown diamonds can plummet to as low as 1% of their natural counterparts’ value,” Smith said in an emailed statement.

Smith cited three retail prices for a two-carat F VS1 (high quality) lab-grown diamond being offered for sale at $11,375, $2730 and $866. A gem of that size and quality costs between $500 and $759 to make.

“While some companies uphold integrity by selling lab-grown diamonds at fair market value, ensuring equitable competition, others exploit the situation for profit.

Diamond “growing” machines in India.
“Some retailers inflate prices by as much as 1200%, potentially driven by a desire to maintain the narrative that they are not different from natural diamonds, otherwise they may be considered too cheap and therefore undesirable, or to capitalize on trends at the expense of consumers.”

If Smith is right and lab-grown diamonds are currently being sold at inflated profit margins, the ease with which they are produced will ensure an increase in supply, resulting eventually in a price crash.

When that happens the value of the once-great De Beers business will fade, and the appeal to a mining company like BHP will disappear — if it succeeds in acquiring Anglo American.

Source: Forbes