Zimbabwe to Take Smaller Cut of Diamond Sales

Zimbabwe plans to reduce the percentage of sales diamond miners must pay to the state, aiming to encourage companies to invest in the Marange fields.

The government proposed a new royalty rate of 10% in the annual budget last week. Diamond producers currently pay 15% of gross revenues, but their overall costs have escalated as they shift toward hard-rock — or “conglomerate” — mining, which is lucrative but expensive.

The change could benefit companies such as Russia’s Alrosa, which is exploring for rough in the country, as well as Botswana Diamonds and Vast Resources, which operate a joint venture at the Marange fields.

“The royalty rate of 15% on diamonds was set during the period when mining was predominantly alluvial, and extraction cost was relatively low,” Mthuli Ncube, minister of finance and economic development, explained in his budget statement. “However, diamond miners are [now] exploiting conglomerate deposits, hence the cost of extraction has significantly increased.”

Last year, the state-owned Zimbabwe Consolidated Diamond Company installed a crushing plant at Marange to help it process the harder rock. The nation plans to increase its annual production to 11 million carats by 2023, from 3.2 million carats in 2018, Reuters reported last month.

The state intends to introduce the lower royalty rate on January 1 with the goal of attracting investment in exploration and extraction. The country has also made progress in its plans to repeal an “indigenization” law limiting foreign ownership of diamond and platinum mines, Ncube continued.

Source: DCLA

Zimbabwe to Take Smaller Cut of Diamond Sales

Zimbabwe plans to reduce the percentage of sales diamond miners must pay to the state, aiming to encourage companies to invest in the Marange fields.

The government proposed a new royalty rate of 10% in the annual budget last week. Diamond producers currently pay 15% of gross revenues, but their overall costs have escalated as they shift toward hard-rock — or “conglomerate” — mining, which is lucrative but expensive.

The change could benefit companies such as Russia’s Alrosa, which is exploring for rough in the country, as well as Botswana Diamonds and Vast Resources, which operate a joint venture at the Marange fields.

“The royalty rate of 15% on diamonds was set during the period when mining was predominantly alluvial, and extraction cost was relatively low,” Mthuli Ncube, minister of finance and economic development, explained in his budget statement. “However, diamond miners are [now] exploiting conglomerate deposits, hence the cost of extraction has significantly increased.”

Last year, the state-owned Zimbabwe Consolidated Diamond Company installed a crushing plant at Marange to help it process the harder rock. The nation plans to increase its annual production to 11 million carats by 2023, from 3.2 million carats in 2018, Reuters reported last month.

The state intends to introduce the lower royalty rate on January 1 with the goal of attracting investment in exploration and extraction. The country has also made progress in its plans to repeal an “indigenization” law limiting foreign ownership of diamond and platinum mines, Ncube continued.

Source: DCLA

Lucapa recovers two +100 carat diamonds at Mothae Mine

Lucapa Diamond Company has reported the recovery of two more +100 carat diamonds from the Mothae kimberlite mine in Lesotho.

One of the stones was a 220 carat stone and is the largest of the three +100 carat diamonds recovered to date from Mothae, since commercial production in January 2019.

The other diamond was 127 carat. Both diamonds were recovered from the treatment of recovery tailings. While the two diamonds are not high-quality, they continue to underline the large-stone nature of the Mothae deposit.

Lucapa Diamond Company reports the recovery of two more +100 carat diamonds from the Mothae kimberlite mine in Lesotho.

Ownership of the mine is split as follows: Lucapa 70%; Government of Lesotho 30%.

The 220 carat stone is the largest of the three +100 carat diamonds recovered to date from Mothae since commercial production commenced in January 2019.

The 220 carat and 127 carat diamonds were recovered from the treatment of recovery tailings.

While the two diamonds are not of high-quality, they continue to underline the large-stone nature of the deposit.

The mine continues to perform well in its first year of commercial production, with another monthly production record of 3,096 carats in the month of October.

Source: DCLA

Lucapa recovers two +100 carat diamonds at Mothae Mine

Lucapa Diamond Company has reported the recovery of two more +100 carat diamonds from the Mothae kimberlite mine in Lesotho.

One of the stones was a 220 carat stone and is the largest of the three +100 carat diamonds recovered to date from Mothae, since commercial production in January 2019.

The other diamond was 127 carat. Both diamonds were recovered from the treatment of recovery tailings. While the two diamonds are not high-quality, they continue to underline the large-stone nature of the Mothae deposit.

Lucapa Diamond Company reports the recovery of two more +100 carat diamonds from the Mothae kimberlite mine in Lesotho.

Ownership of the mine is split as follows: Lucapa 70%; Government of Lesotho 30%.

The 220 carat stone is the largest of the three +100 carat diamonds recovered to date from Mothae since commercial production commenced in January 2019.

The 220 carat and 127 carat diamonds were recovered from the treatment of recovery tailings.

While the two diamonds are not of high-quality, they continue to underline the large-stone nature of the deposit.

The mine continues to perform well in its first year of commercial production, with another monthly production record of 3,096 carats in the month of October.

Source: DCLA

Petra Sells 20ct. Blue Diamond for $15M

Petra Diamonds sold a 20.08-carat blue diamond from its Cullinan mine in South Africa for just under $15 million, it said Friday.

“We are very pleased with this result, which is in line with our expectations and confirms the resilience in the value of very high-quality blue diamonds,” said Petra CEO Richard Duffy. “We look forward to following this exceptional stone’s journey to its polished form.”

An undisclosed leading diamond company purchased the type IIb, gem-quality stone at tender in Johannesburg, South Africa, for $14.9 million, or $741,000 per carat.

“This is an encouraging result and shows that there is still strong demand for special diamonds,” noted investment bank Berenberg. “This is positive for Petra and puts extra cash on the balance sheet to work down debt…. We believe that today’s announcement is an undoubted positive for the shares.” Petra’s stock price rose 10% Friday.

The miner recovered the stone from the western portion of Cullinan in September. At the time, Berenberg estimated the selling price at $10 million to $15 million, while Shore Capital forecast it would fetch between $13 million and $15 million.

The company also plans to restructure its operation, implementing a flatter management structure, whereby the head of each mine will report directly to Duffy. As a result, the company has eliminated the position of chief operating officer, and Luctor Roode, who held that position, will leave Petra with immediate effect, the miner said.

Source: DCLA

Petra Sells 20ct. Blue Diamond for $15M

Petra Diamonds sold a 20.08-carat blue diamond from its Cullinan mine in South Africa for just under $15 million, it said Friday.

“We are very pleased with this result, which is in line with our expectations and confirms the resilience in the value of very high-quality blue diamonds,” said Petra CEO Richard Duffy. “We look forward to following this exceptional stone’s journey to its polished form.”

An undisclosed leading diamond company purchased the type IIb, gem-quality stone at tender in Johannesburg, South Africa, for $14.9 million, or $741,000 per carat.

“This is an encouraging result and shows that there is still strong demand for special diamonds,” noted investment bank Berenberg. “This is positive for Petra and puts extra cash on the balance sheet to work down debt…. We believe that today’s announcement is an undoubted positive for the shares.” Petra’s stock price rose 10% Friday.

The miner recovered the stone from the western portion of Cullinan in September. At the time, Berenberg estimated the selling price at $10 million to $15 million, while Shore Capital forecast it would fetch between $13 million and $15 million.

The company also plans to restructure its operation, implementing a flatter management structure, whereby the head of each mine will report directly to Duffy. As a result, the company has eliminated the position of chief operating officer, and Luctor Roode, who held that position, will leave Petra with immediate effect, the miner said.

Source: DCLA

Cartier Bracelet Soars Past Estimate at Sotheby’s

A sapphire and diamond bracelet fetched more than double its high estimate at Sotheby’s Geneva auction, selling to a female Asian collector after a bidding war.

The piece contains a 47.07-carat, royal-blue Burmese sapphire center stone with high clarity, cut in a cabochon shape and flanked by two pear-shaped white diamonds weighing 9.27 carats and 8.60 carats. Created by Cartier in 1927, the bracelet fetched $6.1 million against a high estimate of $3 million, and earned one of the highest prices at auction for an Art Deco bracelet.

In total, the Magnificent Jewels and Noble Jewels sale on Wednesday brought in $53.9 million, with 80% of lots sold, more than half of which exceeded their estimates.

“With its sensational ‘sugar loaf’ Burmese sapphire and powerful geometric design, the Cartier bracelet that led tonight’s sale was a true masterpiece, among the most important Art Deco pieces we’ve ever handled,” said David Bennett, worldwide chairman of Sotheby’s jewelry division.

The bracelet spearheaded a strong showing for Art Deco pieces, which achieved a combined $9.6 million at the sale, against a high estimate of $6 million, Sotheby’s noted.

A 6.03-carat, fancy-intense-purple-pink diamond pendant estimated at $2.5 million to $3.5 million garnered $3.4 million, while a diamond pendant weighing 78.29 carats went for $2.9 million, beating its $2.8 million high estimate.

A set of diamond jewels by Moussaieff, including a necklace, earrings and a bracelet, brought in $2.7 million. The collection was estimated at $2 million to $4 million.

Other notable items, many of which sold for well above their estimates, included a sapphire and diamond necklace set with a 14.97-carat Kashmir sapphire. The piece, dated 1890, fetched $1.4 million against its upper estimate of $800,000, while an emerald and diamond pendant-brooch combination, created by Cartier in 1927, garnered $1.1 million, smashing its $250,000 high estimate.

Meanwhile, Sotheby’s sold 93% of the jewels on offer from an Asian-American private collection, fetching a total of $12.7 million, against a high estimate of $8.9 million, the auction house said. The sale noted strong activity from Asian collectors, approximately half of whom were female buyers, more than double the number of women purchasers five years ago, Sotheby’s added.

Source: DCLA