Canada's Big Three Mines Could Close Early

Canada’s three biggest diamond mines could be forced to close early, an economist has warned, amid the ongoing slump in prices.

Operators reported losses last year for Diavik, Ekati and Gahcho Kue, all in Canada’s Northwest Territories (NWT).

They are slated for closure as they reach the end of their lives – estimated at 2026, 2029 and 2030 respectively – but dwindling demand may render them uneconomic before those dates.

Graeme Clinton, an economist in Yellowknife, capital of NWT, told CBC, Canada’s national broadcaster : “I don’t think nearly enough is made of the state of the markets which are most important to our economy. These low prices could very well mean an early closure.”

He qualified his comments by saying that none of the miners had so far indicated that they’d bring forward their closing dates.

Diamond mining is key to NWT’s economy, representing over a quarter of its GDP, but miners have been hit hard by the downturn.

Rio Tinto’s Diavik mine lost CAD 127m (USD 94.6m) in 2024, Burgundy’s Ekati lost CAD 94.7m (USD 70.5m) and Mountain Province, minority-owner of Gahcho Kue lost CAD 81m (USD 60.0m).

Early closures would cost thousands of jobs, and would dent NWT’s economy.

Source: DCLA

Mining Company Alrosa Unveils Russia’s Largest-Ever Diamond

Russian diamond producer Alrosa announced Friday that it finished the two year cutting process of the country’s largest ever diamond a 100 carat vivid yellow stone named New Sun.

New Sun was cut from a billion year old 200 carat rough diamond, which was unearthed from an ancient riverbed at the Ebelyakh mine in the Far East republic of Sakha (Yakutia).

Alrosa said 15 of Russia’s top jewelers worked meticulously to “achieve the perfect balance between light, color and the play of shades.”

“Thanks to the highest skill of Russian experts, the diamond has acquired impeccable proportions that accentuate its depth and brightness of its sunny hue,” the company said.

The cutting process marks a “new stage” in the development of the Russian Cut, a gem cutting technique known for its precision and brilliance, Alrosa said.

“New Sun is one of the most significant events in the gemstone industry in recent years, highlighting Russia’s high status in the global diamond industry,” the company said.

Last month, Alrosa announced the temporary suspension of operations at several less profitable sites, reducing annual production by less than 1 million carats. The company still plans to produce 29 million carats of diamonds in 2025.

Alrosa, which is under an EU and G7 import ban, is the world’s largest diamond mining company by volume. It cut production by 2.8% to 34.6 million carats in 2023 and by 4.6% to 33 million carats in 2024.

Source: DCLA

Bombshell: Trump’s 26% Tariffs on Indian Exports

India’s diamond industry is in shock today after the US imposed 26 per cent reciprocal tariffs on all its exports.

That’s almost double the 13.3 per cent predicted by India’s Global Trade Research Initiative before yesterday’s news (2 April).

Traders, manufacturers, exporters and others in India’s diamond industry are still struggling to process the scale of the announcement, made by President Donald Trump in what he called his Liberation Day speech, outlining tariffs that would boost domestic industry and “make America wealthy again”.

He said US tariffs would be roughly half those charged by each of its trade partners. India charges the US 52 per cent, he said, a figure that includes currency manipulation.

“The [gems and jewellery] trade is expected to come at a standstill as US importers will assess whether to place orders with Indian jewellery exporters,” said Kirit Bhansali, chairman of the Gem and Jewellery Export Promotion Council, reacting to the news.

“The tariff is higher than expected,” Colin Shah, managing director of Kama Jewelry. “It is quite severe and will affect exports.”

The US represents over 30 per cent of all India’s gem and jewelry exports, worth $10bn a year. Exports of loose diamonds to the US which currently attract no import duty – and gold jewelry, which is charged at 5.5 per cent to 7 per cent. The US has a trade deficit of $46bn with India.

Trump announced a raft of tariffs on trade partners around the world, claiming the US had been losing out for decades.

“They (India) are charging us 52 per cent and we charge almost nothing for years and years and decades,” said Trump during his announcement.

For decades, the president said, the US “has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike”.

The White House said India imposed “uniquely burdensome” non-tariff barriers. Removing them would increase US exports by at least $5.3bn annually.

The US announced a baseline tariff of 10 per cent on all countries (except Canada and Mexico), to be implemented on 5 April. Additional tariffs (as high as 49 per cent for Cambodia) will be introduced on 9 April for targeted countries.

Source: DCLA

Swiss Watch Slump: Exports to China down 25%

Swiss watch exports slumped in February, down 8.2 per cent, with sales in China down by a quarter.

The Federation of the Swiss Watch Industry Exports (FHS) described it as a “marked slowdown in an uncertain climate”.

It follows a brief return to growth in January, when foreign sales rose by 4.1 per cent after a 2024 marked by steady decline.

China, the third biggest market for Swiss watches, saw sales plunge by 25 per cent year-on-year in February. Exports to Hong Kong, the second biggest market, fell by 12.5 per cent, and they were down 19.1 per cent to Japan.

In the US they fell 6.7 per cent, in marked contrast to a 16.2 per cent increase the previous month.

“Most of the main markets saw significant declines in February,” the FHS said in its monthly update. “Swiss watch exports fell back by 8.2% in February, despite a favourable base effect.”

The six biggest markets, representing just over half of all Swiss watch exports, recorded a combined decease of 12.5 per cent.

Mid-priced watches – CHF 500 to CHF 3,000 ($550 to $3,300) – suffered the biggest losses, down over 15 per cent by value.

Source: IDEX

Diavik recovers 158.20 carat ‘miracle of nature’ diamond

One of the largest gem-quality yellow diamonds ever discovered in Canada, has been unearthed from Rio Tinto’s Diavik Diamond Mine.

The 158.20-carat rough diamond is one of only five yellow diamonds weighing more than 100 carats ever unearthed at Diavik in its 22-year history, stated a release.

Diavik’s production primarily consists of white gem quality diamonds, with less than one percent of its production yielding rare yellow diamonds.

Diavik Diamond Mines Chief Operating Officer Matt Breen stated: “This two-billion-year old natural Canadian diamond is a miracle of nature and testament to the skill and fortitude of all the men and women who work in Diavik’s challenging sub-Arctic environment.”

Patrick Coppens, sales and marketing GM for Rio Tinto’s diamonds business, stated: “The beauty and purity of Diavik diamonds continues to excite passions amongst all who see them and we look forward to following the onward journey of this very special diamond.”

Diamond miner Lipari begins trading on Cboe Canada

Canadian diamond miner Lipari Mining has officially begun trading on the Cboe Canada stock exchange following the completion of its recently announced reverse takeover.

“Listing on Cboe Canada marks a major milestone in our company’s growth,” CEO Ken Johnson stated in a news release Monday, adding that the exchange’s global footprint would allow the company to broaden its shareholder base and increase market visibility.

Shares of Lipari Mining traded at C$0.57 at Monday’s open, for a market capitalization of approximately C$83.7 million ($58.5 million).

Formerly known as Golden Share Resources, the company announced last month that it is acquiring Lipari Diamond Mines (LDM) and its assets in Angola and Brazil through an RTO, following which LDM shareholders would own nearly all (96.7%) of the combined company’s shares.

Prior to closing the transaction, LDM raised approximately $3.62 million through a private placement of subscription receipts to support the future development of its two diamond assets.

In Angola, Lipari owns a 75% equity interest in Tchitengo diamond project, encompassing 30 known kimberlite deposits. The Tchiuzo kimberlite represents the most developed, having already been taken to pre-feasibility by Sociedade Mineira de Catoca and ALROSA in 2013 after spending a reported $35.6 million.

In an earlier news release, CEO Johnson said the company has planned a bulk sampling program at Tchiuzo to follow up on the confirmatory drilling completed by LDM last year. This is targeted to produce a representative parcel of rough natural diamonds for evaluation and making a production decision.

Lipari also owns 100% of the Braúna diamond mine located in the state of Bahia, Brazil. Since entering commercial production in July 2016, the mine has produced nearly 1.2 million carats of natural rough diamonds from 6.54 million tonnes of kimberlite mined, for an average production grade of 18.2 cpht. Operations are now focused on the transition of the mine from an open pit to an underground operation.

According to Johnson, the mine is ramping back to full capacity, with the transition to underground mining largely completed. “Our first sale of diamond production from our underground operation is expected in April,” he added.

Source: DCLA

Guilty: Deloitte Director Bought Pink Diamonds on Company Credit Card

Melbourne, Australia – County court building

A former director of the Deloitte auditing company in Australia has admitted claiming almost AUD 2.8m ($1.8m) in fraudulent work expenses to buy pink diamonds, high-end art and other luxuries.

Paul Quill, 45, used his corporate credit card to make the purchases from 2016 to 2022, passing some of them off as payments for stationary, postage, photocopying and court fees. He admitted two counts of obtaining financial advantage by deception.

The County Court of Victoria, in Melbourne, heard last Thursday (27 March) that among the sums stolen was AUD 682,587 ($429,000) from Joe Gutnick’s Merlin Diamonds, the mining company that was wound up in 2020 after a series of losses.

The court heard that Quill lost control after the breakdown of a relationship. He will be sentenced on 15 April.

He was dismissed in 2022 after his crime was revealed during a routine audit. Deloitte said at the time that it would make sure all clients were repaid in full.

Source: IDEX