Gibb River Diamonds secures Ellendale Diamond Mine leases

The Western Australian government has invited Gibb River Diamonds and India Bore Diamond Holdings to mine at the Ellendale deposit.

The companies will pay rental fees on the areas in which they set up operations, rather than owning that portion of the site outright, the Department of Mines, Industry Regulation and Safety (DMIRS), told Rapaport News last week.

Although DMIRS has already conducted a recent geological exploration of the area to confirm there are still diamond prospects, both companies will need to explore the area further, speak with key stakeholders in the region, and develop mining plans for approval by the state government.

“It’s not going to happen overnight, but restarting mining operations at the former Ellendale mine will be a high point in the rejuvenation of diamond exploration and mining in the Kimberley [region of Western Australia],” Mines and Petroleum Minister Bill Johnston noted.

Gibb and Indian Bore will take on Ellendale’s E4 and E9 pits, and will also have access to storage facilities and infrastructure that belonged to previous Ellendale owner Kimberley Diamond Company before it went into administration in 2015. Since then, the government has been managing the property through its abandoned-mines program. Last year, it announced it was seeking expressions of interest in the site.

Ellendale produced around half of the world’s supply of rare yellow diamonds during peak production, and was also the main supplier of fancy-yellow diamonds for luxury-jewelry retailer Tiffany & Co.

Gibb recently purchased the Blina diamond project, which is adjacent to Ellendale. It is waiting on a final investment of AUD 2.5 million ($1.7 million) to begin mining the area. India Bore is a private company, established in 2015 by CEO Peter McNally, a mining executive with over 35 years of experience.

Source: DCLA

Gibb River Diamonds secures Ellendale Diamond Mine leases

The Western Australian government has invited Gibb River Diamonds and India Bore Diamond Holdings to mine at the Ellendale deposit.

The companies will pay rental fees on the areas in which they set up operations, rather than owning that portion of the site outright, the Department of Mines, Industry Regulation and Safety (DMIRS), told Rapaport News last week.

Although DMIRS has already conducted a recent geological exploration of the area to confirm there are still diamond prospects, both companies will need to explore the area further, speak with key stakeholders in the region, and develop mining plans for approval by the state government.

“It’s not going to happen overnight, but restarting mining operations at the former Ellendale mine will be a high point in the rejuvenation of diamond exploration and mining in the Kimberley [region of Western Australia],” Mines and Petroleum Minister Bill Johnston noted.

Gibb and Indian Bore will take on Ellendale’s E4 and E9 pits, and will also have access to storage facilities and infrastructure that belonged to previous Ellendale owner Kimberley Diamond Company before it went into administration in 2015. Since then, the government has been managing the property through its abandoned-mines program. Last year, it announced it was seeking expressions of interest in the site.

Ellendale produced around half of the world’s supply of rare yellow diamonds during peak production, and was also the main supplier of fancy-yellow diamonds for luxury-jewelry retailer Tiffany & Co.

Gibb recently purchased the Blina diamond project, which is adjacent to Ellendale. It is waiting on a final investment of AUD 2.5 million ($1.7 million) to begin mining the area. India Bore is a private company, established in 2015 by CEO Peter McNally, a mining executive with over 35 years of experience.

Source: DCLA

Most Expensive Coloured Diamonds

Blue

The 9.75 carat Zoe Diamond which sold for more than $32 million.

Zoe Diamond

Green

5.03 carats Aurora Green sold for $16.8 million

Aurora Green

Orange

14.82 carat pear shaped Orange diamond sold for more than $35 million.

The Orange

Red

The 1.56 carat Fancy Red Phoenix diamond sold for $2 million

Phoenix diamond

Pink

59.60 carat Pink Star $71.2 million

Pink Star

Yellow

Vivid Yellow 100.09 carat sold for $16.3 million.

Graff Vivid Yellow

Source: DCLA

Most Expensive Coloured Diamonds

Blue

The 9.75 carat Zoe Diamond which sold for more than $32 million.

Zoe Diamond

Green

5.03 carats Aurora Green sold for $16.8 million

Aurora Green

Orange

14.82 carat pear shaped Orange diamond sold for more than $35 million.

The Orange

Red

The 1.56 carat Fancy Red Phoenix diamond sold for $2 million

Phoenix diamond

Pink

59.60 carat Pink Star $71.2 million

Pink Star

Yellow

Vivid Yellow 100.09 carat sold for $16.3 million.

Graff Vivid Yellow

Source: DCLA

De Beers Issues Synthetics Guidelines

De Beers has provided its rough-diamond clients and Forevermark partners with guidelines on how to operate in the lab-grown market if they wish to continue tapping into its branding.

The mining company, which in 2018 forayed into gem-quality synthetics with the launch of its Lightbox brand, is demanding businesses make full disclosure about their product, segregate synthetics from their natural supply, and do not make unproven claims about either category. The “Statement of Principles” outlines the legal structures companies with lab-grown diamond units must have if they wish to use the sightholder logo, as well as the procedures and training they are required to implement to avoid contamination or misleading marketing.

While De Beers already had rules mandating disclosure and other best practices, the new principles “ensure there is no room for doubt” about how clients may use the sightholder logo, explained David Johnson, head of strategic communications for De Beers. Some of the rules form part of De Beers’ contract with clients, allowing the miner to penalize those who flout them, while others are only recommendations.

“We believe the principles within the document set out a responsible approach, and that they are important for ensuring people can make clear and informed choices about what they are buying,” Johnson added.

The document refers to lab-grown diamonds as “artificial” products that “do not have the same inherent, naturally occurring characteristics or enduring value” as natural diamonds. The miner continues to define diamonds as a natural mineral in line with the International Organization for Standardization (ISO).

De Beers sent the guidelines to clients earlier this month, as numerous sightholders have launched lab-grown businesses under separate entities and trading names.
The following is a summary of the guidelines:

• De Beers customers may only use the sightholder license — including displaying the sightholder logo — for business entities that are exclusively natural-diamond businesses. Entities with both natural and lab-grown activities may not use the logo.
• The miner recommends setting up distinct and independent businesses for any lab-grown diamond activities, with separate systems, processes and workforces.
• The rules prohibit “false, misleading or unsubstantiated” claims about the enduring value of lab-grown diamonds, whether directed at other businesses or at consumers. They cannot state or imply that lab-grown diamonds have the “identical inherent value characteristics” as natural diamonds.
• Similarly, unproven claims about the environmental benefits or ethical advantage of lab-grown diamonds over natural ones are forbidden.
• Sellers must provide the buyer with full and unambiguous disclosure before the transaction is complete.
• They’re also required to ensure segregation at all stages of the supply process, such as storage, cutting and polishing, packaging, and transportation. Ideally, suppliers should handle natural and lab-grown stones in separate sites.
• De Beers customers must “take steps” to ensure full disclosure and segregation further along the supply chain, down to the consumer.
• Clients must have protocols to identify and mitigate contamination risks, and train staff members on the “operational, commercial and reputational impacts” of lab-grown diamonds.
• Preferably, companies should disclose the countries in which the synthetic diamond was grown, polished and made into jewelry, as well as the identity of the grower. De Beers says businesses should “strive” to declare this, though it’s not an absolute requirement.
• Grading language must contain words that make it clear a stone is lab-grown.
• Customers must follow relevant laws, regulations and best practices, such as the standards that the US Federal Trade Commission (FTC) and the ISO have published.

Source: DCLA

De Beers Issues Synthetics Guidelines

De Beers has provided its rough-diamond clients and Forevermark partners with guidelines on how to operate in the lab-grown market if they wish to continue tapping into its branding.

The mining company, which in 2018 forayed into gem-quality synthetics with the launch of its Lightbox brand, is demanding businesses make full disclosure about their product, segregate synthetics from their natural supply, and do not make unproven claims about either category. The “Statement of Principles” outlines the legal structures companies with lab-grown diamond units must have if they wish to use the sightholder logo, as well as the procedures and training they are required to implement to avoid contamination or misleading marketing.

While De Beers already had rules mandating disclosure and other best practices, the new principles “ensure there is no room for doubt” about how clients may use the sightholder logo, explained David Johnson, head of strategic communications for De Beers. Some of the rules form part of De Beers’ contract with clients, allowing the miner to penalize those who flout them, while others are only recommendations.

“We believe the principles within the document set out a responsible approach, and that they are important for ensuring people can make clear and informed choices about what they are buying,” Johnson added.

The document refers to lab-grown diamonds as “artificial” products that “do not have the same inherent, naturally occurring characteristics or enduring value” as natural diamonds. The miner continues to define diamonds as a natural mineral in line with the International Organization for Standardization (ISO).

De Beers sent the guidelines to clients earlier this month, as numerous sightholders have launched lab-grown businesses under separate entities and trading names.
The following is a summary of the guidelines:

• De Beers customers may only use the sightholder license — including displaying the sightholder logo — for business entities that are exclusively natural-diamond businesses. Entities with both natural and lab-grown activities may not use the logo.
• The miner recommends setting up distinct and independent businesses for any lab-grown diamond activities, with separate systems, processes and workforces.
• The rules prohibit “false, misleading or unsubstantiated” claims about the enduring value of lab-grown diamonds, whether directed at other businesses or at consumers. They cannot state or imply that lab-grown diamonds have the “identical inherent value characteristics” as natural diamonds.
• Similarly, unproven claims about the environmental benefits or ethical advantage of lab-grown diamonds over natural ones are forbidden.
• Sellers must provide the buyer with full and unambiguous disclosure before the transaction is complete.
• They’re also required to ensure segregation at all stages of the supply process, such as storage, cutting and polishing, packaging, and transportation. Ideally, suppliers should handle natural and lab-grown stones in separate sites.
• De Beers customers must “take steps” to ensure full disclosure and segregation further along the supply chain, down to the consumer.
• Clients must have protocols to identify and mitigate contamination risks, and train staff members on the “operational, commercial and reputational impacts” of lab-grown diamonds.
• Preferably, companies should disclose the countries in which the synthetic diamond was grown, polished and made into jewelry, as well as the identity of the grower. De Beers says businesses should “strive” to declare this, though it’s not an absolute requirement.
• Grading language must contain words that make it clear a stone is lab-grown.
• Customers must follow relevant laws, regulations and best practices, such as the standards that the US Federal Trade Commission (FTC) and the ISO have published.

Source: DCLA

De Beers final diamond sale of the year gives some hope to depressed market

Anglo American’s De Beers, the world’s No.1 diamond miner by value, said on Wednesday that its last roughs sale of the year fetched $425 million, a slight improvement from the $400 million it obtained in the previous tender, but still over the year a whopping $1.4 billion less than in 2018.

The figure is also 20% lower than the $544 million worth of diamonds the miner sold in December last year, and it has brought the company’s total sales for 2019 to only $4 billion.

DIAMOND GIANT SALES TOTALLED $4 BILLION THIS YEAR, A WHOPPING $1.4 BILLION LESS THAN IN 2018

The diamond giant sells its stones ten times a year in Botswana’s capital, Gaborone. The buyers, or “sightholders,” usually accept the price and the quantities offered, but in the past months they’ve been given more decision making power, with De Beers allowing them to refuse about 50% of the stones contained in the parcels.

The company has also curbed plans to expand diamond production over the next two years and reduced prices for low-quality stones as much as 10%, in yet another sign of increasing volatility at the bottom end of the market.

Cheaper diamonds, which are often small and low quality, have been selling for significantly less now than six years ago due to an unforeseen oversupply that has weighed on prices and producers’ bottom lines.

The situation, some key actors say, is about to change, as the first signs of stabilization in the sector are starting to appear.

Source Bain & Company.

“Following continued polished diamond price stability in the lead up to the final sales cycle of the year, we saw further signs of steady demand for rough diamonds during Sight 10,” De Beers chief executive officer, Bruce Cleaver, said in the statement.

His perception is shared by Russian competitor Alrosa (MCX:ALRS), which last week said it had “evidence” that prices for a variety of diamond products edged higher in October and November. The world’s top diamond producer by output  also noted that prospects for de-stocking were “more visible.”

Source Bain & Company.

Industry consultant Bain & Co., however, believes that while the glut that’s depressing the diamond market will probably be cleared early next year, it will take at least another 12 months for the market to fully recover.

“The industry’s first and strongest opportunity to rebalance and regain growth will be 2021,” said Bain in a report, adding that supply could fall 8% that year. 

Source: DCLA