De Beers progresses diamond traceability, emissions reduction targets

As part of efforts to provide increased provenance across the diamond industry, De Beers plans to bring the first non-De Beers Group goods onto its Tracr platform this year.

The Tracr platform uses blockchain, AI, the Internet of Things and advanced security and privacy technology to track a diamond’s journey from where it is mined and throughout the value chain, providing consumers tamper-proof assurance of where the diamond comes from.

“Our leadership in diamond transparency and traceability continued throughout 2023, underpinned by leading technologies, so that we can increasingly connect consumers with the provenance of their natural diamond and all the benefits it has delivered along its journey,” De Beers CEO Al Cook says in an update to shareholders on the group’s ‘Building Forever’ sustainability goals.

In its ‘Building Forever 2023 Sustainability Report’, published on May 8, De Beers reflects on the sustainability goals it has achieved.

This includes having engaged 5 000 women and girls in science, technology, engineering and mathematics – two years ahead of schedule.

Further, De Beers has agreed to establish a flagship Diamonds for Development Fund, in Botswana; progress key renewable energy projects in support of its emission reduction targets; and scale the development of Tracr.

De Beers reports that it is now registering more than two-thirds of its global production by value on the platform, with 1.5-million individual diamonds registered on the platform during 2023, bringing the total registered on Tracr to two million.

De Beers also opened up the platform to the wider industry, with a number of prominent marketplaces and laboratories, including the Gemological Institute of America and Gemological Science International having joined the platform.

Further, De Beers announced a collaboration with diamond traceability technology company Sarine to focus on recording technologically assured, rough-to-polished diamond traceability, without the need for further physical verification, the diamond miner notes in its sustainability report.

“Tracr and Sarine technology is open to users across the industry and will focus on making digital access to information on diamonds available to Group of 7 officials,” the report states.

In addition, De Beers also launched a “substantially uplifted” Pipeline Integrity (PI) standard, that includes higher expectations and a new melee supplement. The PI standard sets the key criteria for demonstrating segregation and traceability of eligible diamonds from non-eligible diamonds.

“It assesses each entity in the chain of custody, from the point of rough purchase through to the polished sorting office, to help ensure the management systems, policies and procedures are in place to segregate and reconcile eligible diamonds from non-eligible diamonds,” De Beers explains.

In 2023, the group expanded the scope of participants in the PI programme to Tracr participants involved in the handling or the manufacturing process who register polished eligible diamonds on the platform.

This expansion in scope resulted in a 16% increase in the number of entities required to participate in PI, compared with 2022.

Each entity participating in the PI programme must conduct an annual self-assessment and undergo a third-party assessment by SGS – De Beers’ chosen external verifier.

Meanwhile, De Beers is also progressing renewable-energy projects at its operations as part of its emissions reduction efforts.

“We continue our efforts to reduce our carbon footprint in line with our recently validated science-based emission reduction targets and are progressing investments in renewable energy to power our operations,” Cook says.

De Beers has entered into an agreement with Envusa Energy – a joint venture between its parent company Anglo American and EDF Renewables – to wheel 48 MW of wind and solar generated electricity to the Venetia mine, in Limpopo, South Africa, from 2025.

The diamond miner has also completed a prefeasibility study into a 50 MW on-site solar plant to be built at Venetia. A feasibility study into the project is under way and expected to be completed by mid-2025.

Further, De Beers has progressed plans for the development of a 34 MW wind farm at subsidiary Namdeb’s land-based operations, in Namibia. A feasibility study is under way.

In Botswana, Debswana is exploring renewable energy supply options to be developed in partnership with the Botswana Power Corporation or independent power producers.

It also held an inaugural Scope 3 supplier summit, mandating carbon reporting for the company’s sightholders and securing commitments with key suppliers to work on aligned greenhouse gas (GHG) reduction roadmaps.

De Beers has set a target of achieving a 42% decrease in its absolute Scope 1 and Scope 2 GHG emissions, as well as a 25% decrease in its absolute Scope 3 GHG emissions by 2030, with 2021 set as the baseline year.

Source: DCLA

101-ct Allnatt Yellow Diamond Could Fetch $7.2m

The 101.29-carat Allnatt diamond, described as one of the world’s most significant fancy vivid yellow stones, is to be auctioned at Sotheby’s Geneva, with an estimate of $6.2m to $7.2m.

The Type 1a gem, from South Africa, was named after the British racehorse owner and art collector Major Alfred Ernest Allnatt, who bought in in the 1950s. He had it mounted in a brooch by Cartier.

The Allnatt forms the heart of a flowerhead composed of openwork, brilliant-cut diamond-set petals enhanced with baguette diamonds.

It was last offered at auction in Geneva in May 1996 – as the ‘Property of a Lady’ – and sold for just over $3m. At the time it weighed 102.07 carats and was graded fancy intense yellow by the GIA.

It was subsequently repolished to its current 101.29 carats, which bought the color up to fancy vivid yellow.

The Allnatt diamond leads the Magnificent Jewels and Noble Jewels sale on May 14.

Source: DCLA

Young Shoppers Take Shine to Lab-Grown Diamonds

Pandora’s abandonment of mined diamonds has apparently not hindered its standing with younger consumers.

Speaking to the Financial Times (FT) Tuesday (May 7), Alexander Lacik, CEO of the mass-market jeweler, said younger buyers helped fuel a boom in lab-grown stones that had led to a decline in sales of mined diamonds, and helped the company best its luxury rivals.

Lab-grown diamonds are opening up the industry to new consumers, he said, as these stones are usually about a third of the cost of the alternative.

“People are discovering that a diamond is a diamond. It’s a different value proposition, and people are voting with their wallets,” Lacik told the FT. “Older customers are more wedded to mined diamonds. Younger ones are more open to lab-grown.”

The report notes that Pandora became the first major jeweler to move to a lab-grown-diamond-only strategy in 2021 as it pushed to expand its offerings beyond the charm bracelets and necklaces for which it had been known.

The company nearly doubled its sales of lab-grown diamonds in the first quarter, increasing revenue by 87%, the FT said.

Gen Z’s embrace of lab-grown diamonds makes sense in light of PYMNTS Intelligence research showing that this age group — more so than other younger consumers — is most likely more likely to point to buying an expensive retail product as their main financial goal than to mention paying for an upcoming event or show.

“In fact, consumers in this group are seven times as likely to prioritize the former as the latter,” PYMNTS wrote last month.

By contrast, millennial and bridge millennial consumers were the most likely to list paying for an event or show as their top goal.

“By 2030, barely five years from now, Gen Z will represent a third of the workforce. Their disposable income is projected to increase by sevenfold and their spending by sixfold as their incomes rise and they begin to benefit from the $90 trillion transfer of wealth headed their way from parents and grandparents,” PYMNTS CEO Karen Webster wrote recently.

“For that reason, Gen Z is the generation that all businesses are courting — they are their future workers, customers, business partners and investors.”

At the same time, this age group is also struggling to make ends meet, with 59% of Gen Z consumers living paycheck to paycheck, despite half of them not paying rent or mortgage.

“With such a financial cushion, the question remains as to why these young adults struggle to live within their means,” PYMNTS wrote last month. “One answer: Gen Z consumers cite splurging on nonessential items as a top reason for their financial lifestyle.”

Source: DCLA

Passenger Caught with $84,000 of Gold Inside Body

A passenger at an airport in India was caught with almost 1kg (2.2lbs) of gold, most of it concealed inside their body.

They were intercepted at Bir Tikendrajit International Airport, Imphal, in the northeastern state of Manipur, after a specific tip-off.

Customs officers recovered one packet of gold, in a paste form, within the airport complex, and found two more hidden inside the passenger’s body after a thorough examination.

The gold packets were shaped like eggs, wrapped in rubber sheaths and were found hidden inside the passenger’s rectum.

The passenger has not been identified, and Customs did not say where they’d traveled from.

The total weight of the gold was 972.28 grams, with a market value of Rs 70,31,601 ($84,000).

Source: DCLA

Russia’s Alrosa says output stable amid Western sanctions

Russian diamond miner Alrosa has no plans to reduce production amid tougher Western sanctions, its chief executive Pavel Marinychev said on Thursday.
The Russian finance ministry said last month that Russia will regularly buy diamonds from the sanctions-hit producer through a state fund, suggesting that Western restrictions on the country’s diamond exports may be having some impact.
Group of Seven (G7) countries banned direct imports of Russian diamonds in January. A European Union and G7 ban on imports of Russia-origin diamonds via third countries came into effect last month.

Source: DCLA

IDEX Price Report for 1 May: Prices Show Signs of Stabilizing

A diamond held by dop is polished on rotating automatic cast iron lap

Prices showed signs of stabilizing during April, with an even mix of increases and decreases in many sizes, especially fancy cuts. Overall there were more clusters of price rises than we have seen of late.

It’s too early to positively identify a clear upward trend, but the “end of the lab grown boom” is arguably having an impact. Lab grown prices are now so low – in some case just 10 per cent of natural – that many jewelers are opting not to stock them in inventory and are only buying them on consignment.

In addition the G7 sanctions, in place since 1 March, are now starting to bite, and to slowly push up prices.

They have effectively restored the De Beers monopoly, although its rough production is down by almost a quarter so far this year (as is Rio Tinto’s) and rough sales remain sluggish (down 18 per cent on last year). Meanwhile polished exports from India fell by 27 per cent during March to $1.2bn

Highlighted changes

Rounds

1.00-1.24 ct. D-F / VVS2-VS1 +4-5%, F-I / IF-VVS1 -1-7%

2.00-2.99 ct. D-G / VVS2-VS2 +2.5-5%, G-N / IF-VVS1 -2-5%

4.00-4.99 ct. E-I / VS1-2 +1-4%, K-M / VS2-SI1 -1-2%

Fancy Cuts

1.25-1.49 ct. D-I / VVS1-SI1 -1-6.5%

1.50-1.99 ct. D-E / VVS1-VS2 +1-5%, I-J / IF-VS2 -4.5-5.5%

2.00-2.99 ct. D-H / VVS2-VS2 +2.5-3%, H-N / IF-VVS1 -2-5%

Source: DCLA

Gem Diamonds finds yet another big stone in Lesotho

The 118.74 carats diamond recovered in late April.

Africa-focused miner Gem Diamonds (LON: GEMD) has unearthed a new major Type II white diamond at its prolific Letšeng mine in Lesotho, barely six days after the previous find.

The 118.74-carat diamond is the fifth greater than 100-carat precious stone recovered this year at the operation, the company said.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. Boart diamonds are stones of low quality that are used in powder form as an abrasive.

The prolific Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

Diamond miners are going through a rough patch as US and Chinese demand for diamond jewellery continues to be weak and the popularity of cheaper laboratory grown diamonds continues to rise.

In 2015, man-made diamonds had barely made an appearance as a competitor to natural diamonds. By last year, these stones accounted for more than 10% of the global diamond jewelry market, according to industry specialist Paul Zimnisky.

The market values of small to medium diamond mining companies, including Canada’s Lucara (TSX: LUC), South Africa’s Petra (LON: PDL), and Gem Diamonds itself, are around $100 million or less. This is only about a third or a fourth of the price the large stones they aim to find may be worth.

Source: DCLA