Rio Tinto to spend $40m on Diavik diamond mine expansion
Rio Tinto is going ahead with a $40 million expansion of its iconic Diavik diamond mine in the Northwest Territories of Canada, which will extend the operation’s life to at least early 2026.
The approved first phase of the project will expand diamond extraction underground, below the existing A21 open pit. Mining of that area, opened in 2018, recently concluded.
A second phase an additional cost will be put forward for approval in 2024, Rio said.
Phase one below A21 is slated to produce an extra 1.4 million carats, with phase two adding another 800,000 carats.
“This is good news for our employees, partners, suppliers and local communities in the Northwest Territories,” Sinead Kaufman, Rio Tinto Minerals’ chief executive, said in a statement.
Rio Tinto became in 2021 the sole owner of the operation, after buying the 40% share held until then by Dominion Diamond Mines.
The company has operated Diavik since production began in 2003. Located approximately 300 km north-east of Yellowknife, the mine employs over 1,100, of which 17% are Northern Indigenous people.
Diavik is Canada’s largest diamond mine in terms of production with between 6 and 7 million carats of rough diamonds produced each year. Since mining began in 2003 Diavik has produced over 100 million carats of diamonds.
The Northwest Territories’ two other diamond mines – Ekati, operated by Arctic Canadian Diamond and De Beers-Mountain Province’s Gahcho Kué – are expected to close in 2024 and 2028, respectively.
Diavik is about 30 km southeast of Ekati, and Gahcho Kué is 125 km southeast of Diavik.
Conflict diamonds, also known as blood diamonds, are diamonds that have been mined in war zones and sold to finance armed conflict against governments. These diamonds are typically mined under inhumane conditions by workers who are often forced to work in dangerous and exploitative conditions. The profits from the sale of these diamonds are then used to fund armed conflicts, which often involve violence, human rights abuses, and forced labor. This cycle of violence and exploitation is known as the “diamond curse.” To combat the trade in conflict diamonds, the international community has established the Kimberley Process Certification Scheme, which requires that all rough diamonds be certified as conflict-free before they can be sold on the international market. The Kimberley Process has helped to significantly reduce the trade in conflict diamonds, but concerns remain about the effectiveness of the scheme and the ongoing trade in illicit diamonds.
What percentage of diamond production are conflict diamonds The percentage of diamond production that can be considered conflict or blood diamonds has decreased significantly since the introduction of the Kimberley Process Certification Scheme in 2003. According to the Kimberley Process, the percentage of conflict diamonds in the global diamond trade has fallen from approximately 15% in the 1990s to less than 1% today. However, it is important to note that some critics have raised concerns about the effectiveness of the Kimberley Process in preventing the trade in conflict diamonds. They argue that the definition of conflict diamonds used by the Kimberley Process is too narrow, and that some diamonds mined in areas of conflict may still be entering the market through illegal channels. Furthermore, there have been reports of human rights abuses and unethical practices in diamond mining in countries that are not considered conflict zones. So while the percentage of conflict diamonds in the global diamond trade is believed to be low, it is important to remain vigilant and continue efforts to ensure that all diamonds are mined and traded ethically and responsibly.
How do i ensure the diamond i buy is conflict free To ensure that the diamond you buy is conflict-free, you should look for a diamond that has been certified as such by a reputable organization. The most widely recognized certification scheme for conflict-free diamonds is the Kimberley Process Certification Scheme (KPCS), which was established in 2003 to prevent the trade in conflict diamonds. Here are some steps you can take to ensure that the diamond you buy is conflict-free:
Buy from a reputable jeweller: Look for a jeweller that is committed to selling conflict-free diamonds and has a policy in place to verify the origin of their diamonds. Many jewelers are members of organizations that promote ethical and responsible diamond sourcing, such as the Responsible Jewellery Council or the Jewelers of America.
Ask for a certificate of authenticity: Ask your jeweller for a certificate of authenticity that verifies the origin of the diamond you are interested in buying. The certificate should state that the diamond is conflict-free and has been mined and traded in compliance with the Kimberley Process.
Look for laser inscriptions: Some diamonds may have a laser inscription on the girdle that indicates the origin of the diamond and its certification number. This can be a helpful way to verify the diamond’s origin and ensure that it is conflict-free.
Consider buying a lab-grown diamond: Lab-grown diamonds are an ethical and sustainable alternative to mined diamonds. They are produced in a laboratory using advanced technology and do not have the same environmental or social impacts as mined diamonds.
By taking these steps, you can help ensure that the diamond you buy is conflict-free and has been mined and traded in a responsible and ethical manner.
Argyle pink diamonds are extremely rare and highly sought-after, making them some of the most valuable diamonds in the world. The Argyle diamond mine in Western Australia is the primary source of pink diamonds, and it is estimated that only 0.01% of the diamonds recovered from the mine are pink in colour, with an even smaller percentage being of the highest quality.
The Argyle mine ceased operations in 2020, which has led to speculation that the prices of pink diamonds, including argyle pink diamonds, may increase in the coming years. With the mine no longer producing new stones, the limited supply of these rare diamonds is expected to drive up demand and prices. However, like any investment, it’s important to carefully consider market trends and consult with a qualified professional before making any decisions.
The largest pink argyle diamond found to date is the Argyle Pink Jubilee, which was discovered at the Argyle mine in Western Australia in 2011. The diamond weighs 12.76 carats and is a vivid pink colour, making it one of the largest and most valuable pink diamonds ever found. The Pink Jubilee was cut and polished over a period of ten months, during which time the rough diamond was studied and analyzed extensively to determine the best way to bring out its natural beauty and maximize its value. The diamond was sold at auction in 2013 for an undisclosed sum, but it is believed to have fetched a record-breaking price per carat for a pink diamond.
Red diamonds are extremely rare, even more so than pink diamonds. It is estimated that only a handful of natural red diamonds are found each year, and most of them are less than half a carat in size. Red diamonds are so rare that many jewelers and gemologists may go their entire careers without ever seeing one.
The red colour in diamonds is caused by the presence of a rare mineral which causes “graining,”, This occurs when the crystal structure of the diamond is distorted during its formation. The graining causes the diamond to absorb green light and reflect red light, resulting in a beautiful and distinctive red hue. Because of their rarity, red diamonds are among the most valuable and expensive gemstones in the world. They are highly sought-after by collectors and investors, and prices for top-quality stones can reach millions of dollars per carat at auction.
Blue diamonds are also quite rare, but not as rare as pink or red diamonds. Blue diamonds account for only about 0.02% of all diamonds mined worldwide. The blue colour in diamonds is caused by the presence of trace amounts of boron during their formation, which causes the diamond to absorb red, yellow, and green light, resulting in a blue hue.
Blue diamonds are highly prized for their unique colour and rarity, and they can command very high prices at auction. The value of a blue diamond depends on a variety of factors, including its size, colour intensity, clarity, and overall quality. Blue diamonds range in colour from pale blue to vivid blue, with the most valuable stones being those with a deep, rich blue colour.
One of the most famous blue diamonds is the Hope Diamond, which is a 45.52-carat blue diamond that is part of the Smithsonian Institution’s collection of natural history specimens.
The most expensive diamond ever sold is the Pink Star, a 59.60-carat oval-cut pink diamond that was sold for $71.2 million at a Sotheby’s auction in Hong Kong in 2017. The diamond, which is the largest internally flawless fancy vivid pink diamond ever graded by the Gemological Institute of America (GIA), was mined in Africa in 1999 and took two years to cut and polish.
The Pink Star was originally sold at auction in 2013 for a record-breaking $83 million, but the sale was later cancelled after the buyer defaulted on the payment. The diamond was put back up for auction in 2017 and sold to a jewelry retailer in Hong Kong for $71.2 million, setting a new world record for the most expensive diamond ever sold at auction.
Yellow diamonds are not as rare as pink, red, or blue diamonds, but they are still considered rare and highly prized. Yellow diamonds are formed when nitrogen atoms are trapped in the crystal lattice structure of the diamond during its formation, causing it to absorb blue light and reflect yellow light.
The intensity of the yellow colour in a diamond can vary widely, ranging from a pale yellow or light lemon colour to a deep, intense yellow. The most valuable yellow diamonds are those with a deep, rich colour that is evenly distributed throughout the stone.
Yellow diamonds are mined in various parts of the world, including South Africa, Australia, and Canada. While yellow diamonds are not as rare as some other coloured diamonds, high-quality yellow diamonds can still command very high prices at auction, especially those with a large carat weight and intense colour.
Orange diamonds are considered rare and highly valuable. The orange colour in diamonds is caused by the presence of nitrogen and other impurities in the crystal lattice structure of the diamond, which absorb blue and green light, resulting in an orange hue.
Orange diamonds can range in colour from pale orange to a deep, vivid orange, with the most valuable stones being those with a pure and intense colour. Orange diamonds are not as commonly found as white or yellow diamonds and are considered much rarer than brown or gray diamonds.
The most famous orange diamond is the Pumpkin Diamond, a 5.54-carat fancy vivid orange diamond that was mined in South Africa. The Pumpkin Diamond was sold at auction in 1997 for over $1.3 million, and it is now part of the collection at the Smithsonian Institution’s National Museum of Natural History in Washington, D.C.
Laboratory grown rough diamond type 2A carbon crystal.
The main difference between a natural mined diamond and a laboratory grown diamond is their origin. Natural diamonds are formed deep within the Earth’s mantle under extreme heat and pressure over millions of years, while laboratory grown diamonds are created in a controlled environment in a laboratory setting. Some other differences between natural mined diamonds and laboratory grown diamonds include:
Cost: Laboratory grown diamonds are generally less expensive than natural mined diamonds, as they don’t require expensive mining and extraction processes.
Clarity: Laboratory grown diamonds are generally more consistent in terms of their clarity, as they are grown under controlled conditions. Natural mined diamonds can have inclusions or blemishes, which can affect their clarity and value.
Size and Colour: Laboratory grown diamonds can be grown to larger sizes and in a wider range of colours, which may not be as easily available in natural mined diamonds.
Environmental impact: The environmental impact of laboratory grown diamonds is generally considered to be lower than that of natural mined diamonds, as mining can have a significant impact on the environment.
Rarity and Value: Natural mined diamonds are still considered more rare and valuable than laboratory grown diamonds, due to their long history and cultural significance. Ultimately, whether someone chooses a natural mined diamond or a laboratory grown diamond may depend on their personal preferences and priorities, such as environmental concerns, budget, or the desire for a natural, unique stone.
It is worth noting that both natural mined diamonds and laboratory grown diamonds are chemically and physically identical, and both can be certified and graded by independent gemmological laboratories based on the same criteria.
Nirav Modi fled India in 2018 to evade the law days before a case was registered against him and his associates.
By Press Trust of India: Gold, platinum, diamond and jewellery of Firestar Diamond International, owned by fugitive diamantaire Nirav Modi, will go under the hammer on March 25, according to a sale notice.
De Beers has increased prices of small rough diamonds for the second consecutive sight as a combination of demand and supply factors continue to create a hot market for the category.
Prices for tiny stones rose by around 10% on average at this week’s trading session, with sharper advances in certain segments, customers and insiders estimated Monday. The changes were mainly for minus-7 sieve sizes, which weigh about 0.03 carats, across a range of qualities. De Beers was unavailable for comment.
The February sale runs this week from Monday to Friday in Gaborone, Botswana.
Rough under 0.75 carats became a sought-after asset in the second half of 2022 as melee demand from luxury brands strengthened and Indian manufacturers needed cheaper material to fill factories amid thin profit margins. In addition, Western sanctions on Russian diamonds created a mixture of real and perceived shortages in those sizes, for which Alrosa is the biggest supplier. The trade is watching for potential further restrictions as the one-year anniversary of Russia’s invasion of Ukraine approaches.
“Are people preempting what the [new] measures might be on Russia? [The strong market] might have to do with that,” a rough-market participant told Rapaport News on condition of anonymity.
Last year, De Beers made only modest increases in the prices of smalls, even when the segment saw robust demand, a sightholder explained on condition of anonymity. The miner raised prices at last month’s sight by approximately 10% — alongside decreases in the slower, larger goods.
The fresh hikes caught many dealers by surprise, as they were expecting De Beers to monitor the Chinese recovery before making further price adjustments.
Group of Seven nations and the European Union are discussing ways to track Russian diamonds across borders, a move that could pave the way for restrictions on their trade in future, according to people familiar with the matter.
Previous EU attempts to sanction Russian gems have run into resistance from importer nations such as Belgium who argue that the effort would be futile because transactions will simply shift elsewhere without a mechanism to trace precious stones.
A diamond’s origin is clear at the start of the supply chain when it is issued a certificate under the Kimberley Process, which was designed to end the sale of so-called blood diamonds that financed wars. But after that they can become difficult to track.
Cut and polished stones are often intermingled at trading houses and the original certificate will be replaced with “mixed origin” documentation, making it near-impossible to keep track of where Russian diamonds are eventually sold.
The US has sanctioned the Russian mining giant, Alrosa PJSC, which accounts for about a third of the $80 billion global trade in rough diamonds. But the measures have had limited impact as much of the trade flows through other markets such as India.
The people with knowledge of the G-7 and EU discussions said a solution is not imminent, because tracing polished diamonds in a global market is extremely complicated. Still, two of the people said the G-7 could issue a statement on the matter as early as next week as part of the effort to maintain pressure on Russia as its war in Ukraine approaches the one-year mark.
