Alrosa Board Approves Kristall Takeover

Alrosa is set to finalize its acquisition of diamond manufacturer Kristall in a $29 million deal in October, following approval from its supervisory board.

Alrosa expects the RUB 1.89 billion sale-and-purchase agreement to be signed by the end of the month, with a concrete plan for the manufacturer’s integration into the company to be in place by the end of the year, it noted.

Kristall is the leading polished-diamond manufacturer in Russia and Europe, processing more than 200,000 carats of rough annually. While Alrosa already runs a manufacturing unit, the acquisition of Kristall is set to expand its share of the polished-production market from 20% to 70%.

“Despite the fact that Alrosa is currently a key supplier of rough diamonds to Kristall, it accounts for as little as 0.5% of Alrosa’s sales of rough diamonds,” Alexey Philippovskiy, Alrosa’s deputy CEO, said Wednesday. “The deal value is less than 1% of Alrosa’s net assets and, according to our estimates, the purchase price will not exceed Kristall’s net assets at the date of the transaction.”

Last year Kristall produced 105,700 carats of polished diamonds, with sales of 111,700 carats. It reported revenue of RUB 12.8 billion ($199.1 million) and profit of RUB 40.7 million ($633,040). The company also operates a jewelry entity and a business that produces tooling and equipment for the diamond industry.

Source: DCLA

Alrosa Board Approves Kristall Takeover

Alrosa is set to finalize its acquisition of diamond manufacturer Kristall in a $29 million deal in October, following approval from its supervisory board.

Alrosa expects the RUB 1.89 billion sale-and-purchase agreement to be signed by the end of the month, with a concrete plan for the manufacturer’s integration into the company to be in place by the end of the year, it noted.

Kristall is the leading polished-diamond manufacturer in Russia and Europe, processing more than 200,000 carats of rough annually. While Alrosa already runs a manufacturing unit, the acquisition of Kristall is set to expand its share of the polished-production market from 20% to 70%.

“Despite the fact that Alrosa is currently a key supplier of rough diamonds to Kristall, it accounts for as little as 0.5% of Alrosa’s sales of rough diamonds,” Alexey Philippovskiy, Alrosa’s deputy CEO, said Wednesday. “The deal value is less than 1% of Alrosa’s net assets and, according to our estimates, the purchase price will not exceed Kristall’s net assets at the date of the transaction.”

Last year Kristall produced 105,700 carats of polished diamonds, with sales of 111,700 carats. It reported revenue of RUB 12.8 billion ($199.1 million) and profit of RUB 40.7 million ($633,040). The company also operates a jewelry entity and a business that produces tooling and equipment for the diamond industry.

Source: DCLA

Zimbabwe intends to sell another 500,000 carats of diamonds before end of 2019

Zimbabwe says it intends to auction between 400,000 and 500,000 carats of diamonds before the end of 2019.

This follows another auction two weeks ago, the third in 2019, in which the Minerals Marketing Corporation of Zimbabwe (MMCZ) sold 316,000 carats, whose value is yet to be established as figures are still being reconciled.

Prior to the last sale, Zimbabwe had in June invited seven international buyers to participate in a private sale of nearly two million carats.

The Herald newspaper reported Wednesday that MMCZ general manager Tongai Muzenda had said that the corporation expected better returns in the short-term on account of the level of pricing systems that would prevail in the market.

“We are looking forward to conducting another diamond auction where we are targeting to sell between 400,000 and 500,000 carats by the end of November,” he said.

Zimbabwe expects to produce 4.1 million carats of diamonds this year, up from 2.8 million carats last year. At the peak of production in 2012, output was 12 million carats.

Source: DCLA

Zimbabwe intends to sell another 500,000 carats of diamonds before end of 2019

Zimbabwe says it intends to auction between 400,000 and 500,000 carats of diamonds before the end of 2019.

This follows another auction two weeks ago, the third in 2019, in which the Minerals Marketing Corporation of Zimbabwe (MMCZ) sold 316,000 carats, whose value is yet to be established as figures are still being reconciled.

Prior to the last sale, Zimbabwe had in June invited seven international buyers to participate in a private sale of nearly two million carats.

The Herald newspaper reported Wednesday that MMCZ general manager Tongai Muzenda had said that the corporation expected better returns in the short-term on account of the level of pricing systems that would prevail in the market.

“We are looking forward to conducting another diamond auction where we are targeting to sell between 400,000 and 500,000 carats by the end of November,” he said.

Zimbabwe expects to produce 4.1 million carats of diamonds this year, up from 2.8 million carats last year. At the peak of production in 2012, output was 12 million carats.

Source: DCLA

Strange New Mineral Discovered Trapped Inside A Diamond

You’ve heard the slogan, “Diamonds are forever” and while that’s meant to be marketed toward the jewelry customers, it also excites scientists studying diamonds.

This is because unlike when you’re shopping for an engagement ring, imperfections in the diamond are of great interest to scientists.

Through analysis of a single tiny grain imperfection within a diamond, researchers discovered a brand new mineral never before seen. The findings, published in American Mineralogist, officially introduced the new mineral goldschmidtite ((K,REE,Sr)(Nb,Cr)O3).

The diamond is from South Africa, more specifically the Koffiefontein pipe that is known for producing world-class diamonds and operated by the international diamond behemoth De Beers.

Trapped within the diamond itself is a tiny spec, an inclusion that the diamond grew over and around, trapping it within the diamond’s strong crystal lattice about 105 miles below the surface of the Earth. Inclusions in diamonds are not entirely unusual but they are exciting because it gives a glimpse into the geochemistry of the surrounding molten rock as the diamond formed.

The new mineral goldschmidtite, a dark green spec the width of a human hair, has unusual chemical properties. Thankfully, it was trapped within the diamond itself which is strong and stable enough to last millions to billions of years. Hence, it is a perfect “vessel” for preserving rare and unique minerals.

The dominant elements that make up the mantle where this diamond formed are magnesium, iron, etc. However, this spec contains niobium, potassium and the very rare elements lanthanum and cerium. The fact that this mineral contains such a unique concoction of rare elements is intriguing. How was there enough concentration of these rare elements to form this unusual mineral?

The processes by which this mineral formed must have been unique and the available elements must have been unique.

The new mineral is named after Victor Moritz Goldschmidt, who lived in the late 19th century and early 20th century and was an early and famous mineralogist. He was a pioneer in researching the perovskite crystal chemistry, a similar crystal chemistry as found in this newly discovered mineral.

The first step of identification of the mineral is now complete and the next step will be to develop a model for how this unusual mineral formed in the depths below South Africa. Certainly, the team will be looking for more examples of goldschmidtite in the Koffiefontein pipe to see if there are chemical variations and more clues as to how this unique mineral formed.

This isn’t the first time researchers have found precious information locked in diamonds. Back in 2014, a research team published a Nature paper on their discovery of hydrous minerals locked within a diamond. This provided direct evidence that water is locked away in the deep mantle.

Source: DCLA

Strange New Mineral Discovered Trapped Inside A Diamond

You’ve heard the slogan, “Diamonds are forever” and while that’s meant to be marketed toward the jewelry customers, it also excites scientists studying diamonds.

This is because unlike when you’re shopping for an engagement ring, imperfections in the diamond are of great interest to scientists.

Through analysis of a single tiny grain imperfection within a diamond, researchers discovered a brand new mineral never before seen. The findings, published in American Mineralogist, officially introduced the new mineral goldschmidtite ((K,REE,Sr)(Nb,Cr)O3).

The diamond is from South Africa, more specifically the Koffiefontein pipe that is known for producing world-class diamonds and operated by the international diamond behemoth De Beers.

Trapped within the diamond itself is a tiny spec, an inclusion that the diamond grew over and around, trapping it within the diamond’s strong crystal lattice about 105 miles below the surface of the Earth. Inclusions in diamonds are not entirely unusual but they are exciting because it gives a glimpse into the geochemistry of the surrounding molten rock as the diamond formed.

The new mineral goldschmidtite, a dark green spec the width of a human hair, has unusual chemical properties. Thankfully, it was trapped within the diamond itself which is strong and stable enough to last millions to billions of years. Hence, it is a perfect “vessel” for preserving rare and unique minerals.

The dominant elements that make up the mantle where this diamond formed are magnesium, iron, etc. However, this spec contains niobium, potassium and the very rare elements lanthanum and cerium. The fact that this mineral contains such a unique concoction of rare elements is intriguing. How was there enough concentration of these rare elements to form this unusual mineral?

The processes by which this mineral formed must have been unique and the available elements must have been unique.

The new mineral is named after Victor Moritz Goldschmidt, who lived in the late 19th century and early 20th century and was an early and famous mineralogist. He was a pioneer in researching the perovskite crystal chemistry, a similar crystal chemistry as found in this newly discovered mineral.

The first step of identification of the mineral is now complete and the next step will be to develop a model for how this unusual mineral formed in the depths below South Africa. Certainly, the team will be looking for more examples of goldschmidtite in the Koffiefontein pipe to see if there are chemical variations and more clues as to how this unique mineral formed.

This isn’t the first time researchers have found precious information locked in diamonds. Back in 2014, a research team published a Nature paper on their discovery of hydrous minerals locked within a diamond. This provided direct evidence that water is locked away in the deep mantle.

Source: DCLA

Hong Kong Show Reflects Slow Chinese Demand

The timing of the September Hong Kong Jewellery & Gem Fair was unfortunate, coming amid a wave of anti-government demonstrations in the city. But for many participants, the political tensions were masking the bigger issue: Chinese demand has slowed, compounding the wider problems in the diamond industry.

“The protests are an excuse [for not attending], but really the market is not good,” said the director of a large Indian diamond manufacturer on condition of anonymity.

The trade war, the depreciation of the Chinese yuan currency, and high gold prices have reduced the buying power of companies and consumers in the country, exhibitors noted at the fair, which ended Sunday. Trade customers are mostly unwilling to buy for stock or make advance bulk orders, as they want to keep their inventory down. Some Chinese jewelers believe they can get better deals if they wait for polished prices to fall further.

“Retailers have a lot of polished goods that haven’t been sold,” a Hong Kong-based supplier noted at the show last week. “They were buying at a consistent pace, but the consumption level has gone down. They used to buy bigger parcels for the long term, but now they’re working three months at a time.” That change has occurred since May, he added.

Shift to lower qualities

Consumers are seeking cheaper jewelry items, observed Lawrence Ma, president of the Diamond Federation of Hong Kong, China. “The market has adjusted to a level that represents the [current] supply and demand,” he explained.

On a positive note, growing interest in those lower-priced items — such as 0.30- to 0.50-carat diamonds with SI clarity — could boost the trade as shortages start appearing, he added.

“Commercial goods have become very popular in China,” Ma said. “In the last two to three months, the supply of rough has decreased, which is a healthy sign. We’re already seeing certain sizes and qualities of goods might be in demand. We might find we do not have enough of these goods.”

Lower footfall, slower sales

Sales at the show were focused on commercial goods, with stable demand for 1- to 1.50-carat, G to I, VS2 to SI2 diamonds. The market for 0.30- and 0.40-carat stones was weak, but showed signs of stabilizing. Demand for diamonds weighing 3 carats and higher was sluggish, especially in better colors.

Fewer exhibitors and buyers came because of the protests and the market weakness. Trading and traffic were slow, with suppliers observing a drop in the number of Chinese clients attending. But the event still exceeded many exhibitors’ extremely low expectations, as the buyers who turned up were serious ones.

“The show has been better than expected for us, because we didn’t expect many people to come,” said Chetan Shah of R A Gem Centre, the Hong Kong unit of Indian manufacturer S. Vinodkumar Diamonds. “Whoever [came to our booth] were people who really wanted to buy diamonds. They were looking for goods at an attractive price, and if we have the goods, they will buy.”

Sensing an improvement

While buyers were mainly cautious, a minority of exhibitors said clients were aiming to take advantage of the relatively low polished prices to stock up on merchandise.

“People have come to find cheap goods because prices are down,” said Aashay Bhansali, a trader at Antwerp-based diamond supplier Veera Dimon. “Prices have fallen so much, and they don’t think there will be another price fall.”

Diamantaires expressed some optimism that the upcoming holidays would boost Chinese demand, beginning with Golden Week, which starts October 1. Retailers have slowly been working down their inventories by reducing purchases, and will soon be ready to buy again, another Antwerp-based company executive predicted. Golden Week, Christmas and Chinese New Year all offer opportunities for local diamond sales, he noted.

“They haven’t bought much over the last few months, so I’m sure demand will come back,” he explained. “They can’t keep on like that.”

Source: DCLA