On the 5th of September, India’s Gem & Jewellery Export Promotion Council (GJEPC) and the Bharat Diamond Bourse published a Trade Letter for the diamond industry. In the letter, they highlight a possible turnaround and the positive outlook for recovery and price stability in the industry. A few key indicators were listed that suggest this could be the case:
Lucara, the Canadian mining company operating the Karowe mine in Botswana has announced the recovery of an exceptionally large 2,492ct diamond. The mine is renowned for exceptional and large diamonds of high quality, including the the 1,758 carat Sewelô and the 1,109 carat Lesedi La Rona.
According to news reports, Israeli lab-grown producer Lusix is seeking a protection from creditors through a debt settlement, with debts to three Israeli banks amounting to US$15m, following unsuccesful attempts to raise additional funding from existing investors. Led by entrepreneur Benny Landa, Lusix is said to initially have raised US$150m, including US$60m from the Landa Group and US$90m from other investors, led by luxury giant LVMH, but the company got in trouble as LGD prices collapsed by more than 90% in recent months.
Photo Credit: Lusix
Junior miner Botswana Diamonds (BOD) intends to start using AI, technology developed in collaboration with International Geoscience Services Limited to enhance its exploration activities in Botswana to identify mineral deposits, diamonds and other minerals, the company said recently. The technology will combine existing geological data and knowledge with the ability of AI to generate models fast and efficiently. “It is early stages for both our work and the use of the technique in mineral exploration, but the future potential is huge.", BOD Chairman John Teeling commented to miningmx.
According to data from the GJEPC, trade in India was down across the board comparing April to July figures in 2024 to the same period in the previous year:
Notably in July, comparing to July 2023:
According to JCK News, Botswana's mining minister Moagi told local parliament that the government is looking into increasing a planned buy-in of HB Antwerp, originally stated to be 24% for US$65m, implying HB Antwerp's valuation stood at US$278m at that time. According to Moagi, that same amount of investment would now warrant a 49.9% stake, citing the current depressed market as a reason for HB Antwerp's value to have decreased.
In an announcement to its clients, De Beers has announced it is rescheduling sights to alleviate market pressure caused by decreased demand and a supply glut. Sights 7 and 8 will be combined at the end of September and Sight 9 and 10 dates are amended to accommodate timing issues in Botswana, to November 4-8 and December 2-6.
In times of economic uncertainty, with rising interest rates and inflation, alternative investments outside of traditional assets such as stocks or cash, are increasingly popular with the world's rich and wealthy. Research by the Wealth Enhancement Group highlights US investors highlights a particular growing interest in classic cars and exceptional - mostly fancy colored - diamonds among high-net-worth individuals, with the latter taking up 8th position in the top 10 of alternative investment.
In a letter to its clients, Petra Diamonds has announced it is postponing its August viewing and sale of South African production in Johannesburg until further notice, to avoid unnecessary supply of rough to the market, which has been suffering from weak demand for several months now.
Reuters reports that the 50/50 Government of Botswana and De Beers owned mining entity Debswana has seen sales nearly halved in the first half of this year, selling US$1.29bn compared to US$2.54bn last year. Currently, the company sells 75% of its production via De Beers, the remainder is allocated to Okavango Diamond Company (ODC). Under the new contract, ODC's share is set to be increased to 50% of Debswana's production by the end of the 10-year agreement.
The price of lab-grown diamonds has fallen significantly in recent years. In July 2022, the price was $300 per carat, but by mid-2024 it had dropped to just $78 per carat. This significant decline is primarily due to an oversupply of the product and the rapid advancement in production technologies, which has made these diamonds more accessible to the consumer but also less valuable in terms of resale. Initially welcomed for their affordability and ethical credentials, lab-grown diamonds are now flooding the market.
Lucapa Diamond Company has announced the discovery of an extraordinary 176-carat Type IIa diamond at the Lulo Mine in Angola. This remarkable find marks the fifth diamond over 100 carats this year, highlighting Lulo's potential as a leading source of high-value gems. Since starting operations in 2015, the mine has produced 45 diamonds exceeding 100 carats.
Mining company Burgundy Diamond Mines reports a recovery of 1.22 million carats during quarter 2 of 2024. This is a decrease by 10% in comparison with the same quarter previous year, which is in line with the decrease in the total volume of tonnes the company has processed (Q2-2023: 1.36 million). Burgundy sold 1.03 million carats and the sales happened over three sales events, including one fancy sale. The mining company achieved significant progress in several key areas this quarter.
De Beers reported a significant revenue decline for the first half of 2024. According to the company's latest financial statement, revenue fell by 21% to $2.2 billion compared to the same period last year.
The sharp drop is due to several converging factors affecting the diamond industry. De Beers, known for its vast mining operations and luxury retail presence, has faced headwinds from reduced consumer demand, fluctuating diamond prices, and increased competition from lab-grown diamonds.
Diam Concept, a French company celebrated for its innovative approach to lab-grown diamonds and partly financed by Chanel, has recently faced a significant financial setback and went into receivership in May. Founded in 2016, Diam Concept gained attention for its cutting-edge use of chemical vapor deposition (CVD) technology to produce high-quality diamonds.
Botswana is taking steps to strengthen local ownership in its mining sector by introducing new legislative measures. The draft law requires that citizens acquire a 24% stake in mining operations, reflecting the government's commitment to ensuring that the benefits of the country's rich mineral resources are shared more equitably among its population.
Big luxury conglomerates are reporting disappointing results for the first half of the year. LVMH's turnover dropped 1% y-o-y to US$45.3bn, with net profits dropping 14% to US$7.9bn. Similarly Kering said its turnover decreased to US$9.8bn, down 11% y-o-y, while net profit nearly halved to US$953m. Earlier, preliminary earnings reported by Cartier indicated a 27% drop in sales in China and Swatch Group reported an 11% decrease overall.
In India, there is a very positive reaction to the Budget 2024 announcement by Finance Minister Nirmala Sitharaman.
This announcement is very important for the Indian diamond industry. It includes the abolition of the 2% equalization levy on rough diamond imports and the establishment of Special Economic and Notified Zones, which allows foreign diamond-producing companies to sell their diamonds directly to the diamond-cutting and manufacturing entities in India.
Anglo American said on Monday it has agreed to sell two royalty assets to Taurus Funds Management for up to $195 million. One of these royalty assets is De Beers' royalty interest in the Onslow Iron Project in Australia. Taurus will buy this unit for $150 million.
De Beers' CEO Al Cook refers to the announcement of their Origin Strategy on 31 May and says that with this sale, they are taking another step in delivering their promise to streamline De Beers. "This means that we can focus our people, our resources and our capital on what we do best: diamonds", according to Al Cook.
Petra Diamonds’ sales rose 13% for the full fiscal year, Sales volume grew 36% to 3.2 million carats.
The company attributes a portion of the rise to the completion of a ramp-up to steady processing at its Williamson mine. Petra also had extra rough during the period it had held back from sales at the end of the previous year when prices were low due to lackluster rough demand.
Picture Credit: Petra Diamonds
De Beers is considering reducing its diamond production. The main reason is deteriorating market conditions resulting from weak consumer demand in China.
“With higher-than-normal levels of inventory remaining in the midstream and an expectation for a protracted recovery, we are actively assessing options with our partners to further reduce production to manage our working capital and preserve cash,” the company said Thursday.
The Board of Directors of the Antwerp World Diamond Centre appointed Karen Rentmeesters as the new, permanent CEO. In this new role, she is tasked with guiding Antwerp back to growth, among other things, by focusing on optimizing AWDC’s operations.
The diamond production in South Africa is at a 10-year low. Where the country used to produce an average of 8.5 million carats a year (before 2023), the production has now dropped to 6.1 million carats in 2023.
The drop has been caused by the temporary halt of production at De Beers' Venetia diamond mine, which accounted for 40% of the country's diamond production.
De Beers is developing Venetia as an underground mine to extend its operational life until the 2040s. The company expects to extract 88 million carats from this new phase.
In January of this year, a plane crashed in Canada, with several workers from Rio Tinto's Diavik mine on board. The mining company subsequently decided to temporarily pause operations at the mine to give its workers sufficient time and space to process this tragic accident. This temporary halt in operations caused diamond production to drop 28% in the second quarter compared to the same period last year.
Current market conditions (large inventories and falling polished diamond prices, especially in India) are forcing De Beers to be more flexible with its sightholders. Even though the De Beers spokesperson did not want to comment on this news, according to Rapaport, a note sent to De Beers sightholders reveals that for the "July sight," they will be allowed to refuse up to half of lots in three boxes of medium- and higher-quality rough under 3 grainers (0.75 carats). The flexibilization comes without De Beers customers experiencing an impact on future allocations from the mining company.
According to the IMF (International Monetary Fund), the economic growth of Botswana - which is largely financially dependent on diamond production (accounting for 40% of government revenues) - will increase by only 1% in 2024, compared to 2.7% in 2023.
The IMF sees the crisis in the international diamond industry (due to falling demand and prices) and the corresponding decline in diamond production in Botswana as one of the reasons for this slowed economic growth of the country.
The wet season in Angola - which was very severe this year and caused heavy flooding - has ended. Now that the water has receded and most areas are accessible again, Lucapa Diamond Company is resuming its exploration activities. The focus is on the Kimberlite L014 area, the area beneath the Cacuilo-rivier, as this area is more likely to be the major source of the diamonds being found in the river’s alluvial deposits. The road to access the L014 area has begun, along with auger drilling to better define the location of the best material for sampling.
Australian miner Burgundy Diamond Mines, operating the Ekati mine in Canada's Northwest Territories is looking at the potential to extend the Misery underground mine's life beyond the anticipated 2025 end of life date. Extension drilling is ongoing to assess whether the main ore body is deeper and wider than originally assumed. Updated resource estimates are expected to be announced later this year, with an updated mine plan.
Photo credit: Burgundy Diamond Mines
In an extensive analysis, Rapaport's Joshua Freedman takes stock of market sentiment in India and the US. While Indian manufacturers are feeling the pinch of bloated inventories, weak demand and sharp declines in polished prices, struggling to sell even at reduced prices, US traders have more flexibility in aligning supply to actual demand, Rapaport states.
According to recently released Kimberley Process statistics, in 2023, Russia became the largest producer of rough diamonds in terms of value, jumping over Botswana, despite sanctions on Russian diamonds by the G7. Total value of Russian rough production amounted to US$3.61bn, for a volume of 37.3m ct, compared to Botswana's total production value of US$3.28bn, for a total of 25.1m ct.
Photo credit: Envato Elements
Russian diamond mining company Alrosa, through its Almazy Anabara subsidiairy has purchased the Degdekan gold mine from Polyus for US$276m. Commencing production in 2028, at full capacity, the mine is expected to produce around 3.3 tonnes of gold annually, with an estimated life span that runs through to 2046, estimated at 100 tonnes. Both Alrosa and Polyus are subject to Western sanctions.
Photo credit: Envato Elements
Times of India reports representatives of India's diamond industry have asked government to come up with a payment system that would facilitate transactions between India and Russia. According to the report Indian traders now conduct payments in ruble or yuan through Dubai and China, as US$ payments are heavily restricted due to Western sanctions and currency conversions from rupee to ruble are much more difficult.
Photo credit: Envato Elements
Tiffany Stevens, previously serving as CEO of the Jewelers Vigilance Committee (JVC) this week assumed the role of Chief Business Officer and Head of Sustainability of the International Gemological Institute (IGI) for North America. Building on years of experience in sustainability matters, including leading JVC in guiding jewelers on sanctions and transparent supply chains, Stevens says to be excited to advance gemology education, promote transparency and responsibility in her new role at IGI.
In the wake of Antwerp World Diamond Centre's Board elections held two weeks ago, the organization today announces the confirmation of Isidore Mörsel as President of the Board. Mörsel succeeds himself while Ravi Bhansali, who is joining AWDC's Board for the first time, was appointed Vice-President.
Rio Tinto has completed a 3.5 megawatt (MW) solar power plant at its Diavik Diamond Mine in Canada’s Northwest Territories, the largest off-grid solar facility in Canada’s territories. Featuring 6,620 panels, the plant generates 4.2 million kilowatt-hours annually, cutting diesel use by one million liters per year and cutting greenhouse gas (GHG) emissions by 2,900 tonnes of CO2 equivalent—comparable to removing 630 cars from the road.
As of September 1 of this year, Frenchman Louis Ferla, who has already been CEO of Vacheron Constanin since 2017, will assume the role as CEO of Cartier. He thus succeeds Cyrille Vigneron who, after eight successful years at the head of this Maison, has decided to retire. Mr. Vigneron does not disappear from the scene, as he will continue to assume the role of Chairman of Cartier Culture & Philanthropy.
Lucapa announces a conditional Sale and Purchase agreement has been reached with Lephema Executive Transport Ltd, having provided long-term mining services to the mine, for its 70% stake in the Mothae mine in Lesotho. Mid May, Lucapa announced its plans to divest the Lesotho operation in favor of focusing on the miner's assets in Australia and Angola.
the Gemological Institute of America (GIA) has announced a pilot program for jewelry reports, which will include metal verification, links to existing loose diamond GIA grading reports and clarity, color and carat of other diamonds. Customers will be able to choose to add services such as new engravings or a 360° video. Interested parties can register on a waiting list.
Today, the EU has adopted the 14th package of sanctions against Russia, including ‘grandfathering’.
Election fever has been peaking the past few days in Antwerp. On June 17 and 18, voters from across the Antwerp diamond industry were able to cast their votes for their favorite candidates for the new Board of Directors of the Antwerp World Diamond Centre (AWDC). During these elections, it is the 6 directors representing the trade who are elected. Over 1309 votes where submitted, a record turnout according to the AWDC. In the meantime, the votes are counted and the winners of these important elections are known.
The six candidates with the highest number of votes are:
According to the New York Post, jewellery retail giant Signet, started printing a buyer's warning on all of its Labgrown Diamond sales. The statement reads "Lab-created diamonds have the same optical, chemical and physical properties as natural diamonds. However, because lab-created diamonds can be produced in abundance, they are less expensive and make larger diamonds more affordable.
At the JCK Las Vegas Sustainability Summit, the Watch and Jewellery Initiative 2030 (WJI 2030) launched the Nature Roadmap, a framework designed to guide the global watch and jewellery industry in addressing the biodiversity crisis. The roadmap outlines essential steps: Assess, Commit, Transform, and Disclose.
Gem Diamonds has announced the recovery of an exceptional 172.06ct Type II white rough diamond, the seventh 100+ct diamond recovered at its Letšeng mine this year alone.
In a bold move to revive its heritage, De Beers announced it will cease producing lab-grown diamonds for jewelry, focusing instead on natural stones. This decision follows a tough year of declining sales and strategic uncertainties, as parent company Anglo American considers divestiture options.
A Strategic Shift
In a surprising move, Botswana President Masisi yesterday left the country to join industry stakeholders at the 2024 JCK Las Vegas show. Botswana finds itself in the middle of a perfect storm of challenges: De Beers' parent company Anglo American recently became the target of potential take-over bids, which led to Anglo announcing plans to spin off its diamond business.
Gem Diamonds Limited, the company that owns 70% of the Letseng mine in Lesoto, announced today the discovery of a 212.49ct Type II White Diamond. This remarkable stone was brought to the surface on May 28 and it is the sixth diamond weighing more than 100 carats to be unearthed this year from that mine.
Lucapa Diamond Company announced yesterday the recovery of a 195 carat diamond, discovered in the Lulo Alluvial Mine in Angola. It involves a type IIa diamond, which occurs only very rarely in nature. Special about this type of diamonds is the fact that they have no measurable nitrogen or boron impurities, making them the most chemically pure diamonds with the highest thermal conductivity that exists. Mostly these diamonds are colorless, but they can also be gray, light brown, light yellow or light pink.
Petra Diamonds, the diamond mining company with mines in South Africa and Tanzania, has signed a long-term power purchasing agreement with Etana Energy, South African energy supplier, to provide its South African operations at Cullinan and Finsch with renewable energy from Etana's existing and future wind and solar projects. Etana will supply between 36% and 72% of the estimated energy requirements starting from financial year 2026 onward, aimed at reducing Petra's GHG emissions well ahead of the 2030 target.
De Beers 4th sight cycle revenues totaled US$380m, a 21% drop from US$479m achieved in the 4th cycle of 2023 and -15% from sight n°3 this year, translating in a 17% decrease in revenues from sales (US$ 1.63bn this year vs US$1.97bn in 2023) year-to-date. The lower sales figures correspond with current market sentiment and add to the turbulence surrounding a potential sale of the diamond entity of Anglo American.
Photo credit: Anglo American Plc
In a statement issued by the Antwerp World Diamond Centre (AWDC), the umbrella organization calls for the inclusion of one or more G7 verification points for rough diamonds, outside of the G7 and EU. Antwerp's representative body says it is fully aligned with the G7 and EU's ban on Russian diamonds through a solid but workable verification system, including the use of traceability solutions, which at the same time ensures the trade of non-sanctioned goods is not affected.
Antwerp mourns the loss of industry veteran Willy Rotti, former President of the Diamantclub of Antwerp and honorary President of the Belgian Federation of Diamond Bourses who passed away on May 22. The Rotti family, one of the founding families of the Diamantclub of Antwerp, is a well-known name in the industry and has been active in the diamond industry for over 120 years.
In a statement, Signet, one of the largest diamond retailers in the world and diamond miner De Beers announced they will be collaborating on a marketing project to boost demand for natural diamonds.
Are lab-grown diamonds, to the naked eye identical to and sharing identical chemical and physical properties with natural diamonds, but 40-50% less expensive, that sustainable as often claimed by its producers?
The world of high-end jewelry auctions recently witnessed a dazzling display of opulence and prestige, with events in both Hong Kong and Geneva showcasing exceptional diamonds, gemstones, and exquisite craftsmanship.
Lucapa, the Australian listed miner with operations in Angola (Lulo) and Lesotho (Mothae) is looking to divest its 70% stake in the Mothae mine after a review of its asset portfolio by the recently restructured Lucapa board of directors.
Anglo American Plc is implementing strategic changes to unlock shareholder value and enhance returns. This includes exiting diamond, platinum, and coal mining operations, marking one of the most significant shake-ups in the company's 107-year history.
Key to this plan is the demerger or sale of its De Beers diamond business, alongside separating its Anglo American Platinum unit and divesting coking coal mines in Australia. Additionally, spending on a fertilizer mine project in England will be scaled back.
De Beers has announced its LGD line Lightbox is lowering prices of its offering from the initial US$800/ct and US$1500/ct for high colors, and adds "batch grading" reports from GIA based on sample grading. New Lightbox pricing (up to -40% from previous pricing) is lower than most lab-grown retail prices, JCK reports.
• I-J color, VS, very good cut: US$500/ct
• G-H color, VS, very good cut: US$600/ct
• D-E-F color, VS, excellent cut: US$900/ct
Photo credit: Lightbox
Lucara Diamond in its Q1 2024 release reports total revenues of US$41.1m, slightly down y-o-y from US$42.8m. A total of 93,560ct were sold through its different sales channels, including through the renewed 10-year sales agreement with HB for specials (10.8ct+ rough diamonds) produced, with so-called "top-up payments" resulting in US$4.9m of the total revenues. In total 160 "specials" (5.1% of total cts) were recoverd in Q1, 3 of which larger than 100ct and one larger than 300ct.
Watches of Switzerland (UK based) has acquired Roberto Coin Inc. the US division of the Italian jeweller and 6th largest brand in the US by sales through 400 points of sale, for US$130m. The acquisition will allow the group to increase the volume of Roberto Coin jewelry in its own retail network as well as the exclusive right to expand the wholesale reach of Roberto Coin Inc., which will operate as a standalone company within the group. The acquisition demonstrates the increasing importance of branded jewelry in the global retail landscape, National Jeweler notes.