Archive | Diamond Mining

Fifth-largest gem quality diamond in history sold for $40 million – by Cecilia Jamasmie ( – March 13, 2018)

Gem Diamonds found the 910-carat diamond, named “The Lesotho Legend,” in January.

The world’s fifth biggest gem-quality diamond ever found was sold for $40 million on Monday, the company that found the massive rock said.

Africa-focused Gem Diamonds (LON:GEMD) dug up the D colour, Type IIa rough diamond, which is about the size of two golf balls, at its flagship Letšeng mine in Lesotho in January.

The rock, named “The Lesotho Legend,” was acquired by an unnamed buyer in Antwerp, Belgium, the company said. Continue Reading →

Forget Emma Watson’s Dodgy Tattoo, Look At The Bling – by Katie Burton (Huffington Post – March 7, 2018)

Lab-made diamonds, according to the companies that produce them, are “real”, in that their chemical composition is identical to that of a natural diamond.

It’s a shame that Emma Watson’s inadequate grasp of the English language has dominated the headlines after the Oscars. Just inches below her infamous tattoo clung a simple silver and diamond bracelet with a much more interesting story to tell.

Emma’s diamonds were not the same variety normally found cooling the skin of the obscenely wealthy i.e. the type buried deep underground and extracted by giant companies.

The bracelet featured lab-made diamonds, produced by a Californian company called the Diamond Foundry. A company that, incidentally, Leonardo DiCaprio has invested in. Continue Reading →

Global diamond supply expected to decrease this year – by Paul Zimnisky ( – March 6, 2018)

Expert estimates it will fall 3.4% to 147 million carats.

Coming off of 2017, a year in which global diamond supply by volume increased by 11.7% year-over-year, supply is forecast to contract by 3.4% to 147M carats in 2018 (see appendix at bottom for itemized analysis by mine).

Out of the world’s top three diamond miners by volume, only De Beers is expected to increase production this year, while diamond output at Russia’s ALROSA (MICEX: ALRS) and diversified-major Rio Tinto (LSE: RIO) is estimated to decline, more than offsetting De Beers’ increase. Combined, the three companies represent approximately 70% of global diamond supply by volume.

De Beers

Company-wide, De Beers is estimated to produce 34.6M carats worth $5.7B in 2018 which is enough to maintain its status as industry-leader in terms of value produced. The production volume figure represents a modest 1.2M carat increase year-over-year, with the boost expected to primarily come from the company’s Jwaneng mine in Botswana, the richest diamond mine in the world in terms of value produced. Continue Reading →

Lucara Diamond’s stock is cheap – but not necessarily a bargain – by Ian McGugan (Globe and Mail – March 2, 2018)

Value hunters like to talk about whether a stock is cheap or pricey on the basis of its earnings and cash flow. But sometimes you have to go well beyond the financial statements to assess an investment.

A case in point is Lucara Diamond Corp. It seems to be a value hunter’s dream – a high-performing company with a spotless balance sheet selling for a below-market multiple. But is the Vancouver-based miner really as cheap as it appears to be on paper?

Let’s start with the positives. Lucara operates a diamond mine in Botswana and has a history of unearthing massive gems, including the largest gem-quality diamond discovered in more than a century. It has been consistently profitable since 2013, pays a 4.4-per-cent dividend and doesn’t have a penny of debt. Better yet, it changes hands for a mere 11 times earnings. Continue Reading →

The World’s Cobalt Supply Is In Jeopardy – by Frank Holmes (Forbes Magazine – February 27, 2018)

Disney’s Black Panther is in theaters right now, breaking all kinds of box office records and wowing audiences. The film features a fictional, highly-advanced African country known as Wakanda, whose vast wealth and prosperity are derived almost exclusively from the mining of a rare, fantastical metal called vibranium.

In its own colorful way, Black Panther does an excellent job dramatizing mining’s important role in supplying the world with much-needed raw materials. Vibranium is the basis for everything in the film, from the title character’s flashy superhero suit to Wakanda’s otherworldly infrastructure and vehicles, to its futuristic medicine and weaponry.

Like Wakanda, the real Africa is rich in minerals and metals, many of them extremely valuable. Think platinum and palladium in South Africa, diamonds in Botswana, copper in Zambia and cobalt in the Democratic Republic of the Congo. Continue Reading →

The bright side of the diamond supply gap – by Daniel Israelson (Globe and Mail – February 27, 2018)

For investors scratching their heads about the future of volatile world markets this year, David Whittle offers an alternative: Say it with diamonds. “We’re the largest new diamond mine in the Northwest Territories,” says Mr. Whittle, interim president and CEO of Mountain Province Diamonds Inc. (MPVD).

His Toronto-based company is a 49-per-cent joint venture partner with mining giant De Beers Canada Inc. in the mine called Gahcho Kué, a remote fly-in/fly out operation 280 kilometres northwest of Yellowknife.

“De Beers is the operator. They run it hands-on, and we’re fully involved with the oversight and management. We take a fulsome role in the decision-making,” Mr. Whittle says. The mine started pre-commercial production in 2016 and went into commercial production in the middle of last year. Continue Reading →

Prosperous 2017 for De Beers means N.W.T. diamond industry warming up: Chamber of Mines – by Gabriela Panza-Beltrandi (CBC News North – February 26, 2018)

De Beers Canada brought in close to $260 million in earnings in 2017

A prosperous year for De Beers Canada could mean the diamond industry is warming up in Northwest Territories, according to the executive director of NWT and Nunavut Chamber of Mines.

In the 2017 fiscal year, De Beers Canada brought in close to $260 million in earnings before interest, taxes, depreciation and amortization. “We had a tremendous production year. We had the biggest ever production output from Canada,” said Kim Truter, CEO of De Beers Canada.

“We’re looking at another bumper year from Canada, something we’re very excited about.” Truter said it’s thanks in large part to the Gahcho Kue mine, located about 280 kilometres northeast of Yellowknife. Continue Reading →

First Nation, mining company announce partnership – by Alexandra Paul (Winnipeg Free Press – February 20, 2018)

A remote Manitoba First Nation has made history by partnering up with a mining company to explore diamond claims staked in the Oxford Lake area.

There’s only an outside chance the deal between Altius Resources Inc. and Manitoba’s Bunibonibee Cree Nation will lead to a new mining source for diamonds, but its chief and the lawyers who mediated the agreement with Altius say the deal breaks ground even if there’s never enough diamonds to open up a mine.

“It is very historic. It is, we believe, the first of its kind in Manitoba. It sets out the conditions for acquiring the First Nation’s consent. Which means the company has acquired it, but has done so on a whole series of protection and compensatory measures that are sufficient for the First Nation,” said Kate Kempton, counsel for the First Nation at the Toronto-based law firm Olthuis, Kleer and Townshend. Continue Reading →

How glitz and glamour deceits banks time and again – by Atmadip Ray and Sangita Mehta (Economic/India Times – February 21, 2018)

Diamonds are regarded as the hardest known material on the planet. Going by the mounting pile of loan delinquencies, they seem to be the hardest business for Indian bankers to crack.

Last week, Punjab National BankBSE 0.47 % (PNBBSE 0.47 %) acknowledged an elaborate web of deception that had defrauded the lender, on initial count, of Rs 11,400 crore. PNB’s startling disclosure involving diamond jewellery designer Nirav Modi capped a string of striking defaults by businesses in polished stones, putting the spotlight on the underwriting skills of bankers financing an industry famed for its glitz and glamour.

Among the delinquents are Gitanjali GemsBSE -9.85 %, promoted by Modi’s maternal uncle Mehul Choksi, that owes about Rs 9,000 crore to lenders, Winsome Diamond that defaulted on Rs 6,800 crore, Surat’s Vincent Diamond that caused losses of Rs 4,500 crore and JB Diamond, which defaulted on Rs 800 crore of loans. Continue Reading →

Zimbabwe: Account for the Missing $15 Billion – Mnangagwa Told (All – February 14, 2018)

Presidential candidate in the forthcoming elections, Dr Noah Manyika, who leads the Build Zimbabwe Alliance party, says President Emmerson Mnangagwa and his Vice Presidents must be held accountable for the $15 billion worth of diamonds revenue, as they were in critical positions when the loot reportedly happened.

Former President Robert Mugabe broke the news of the missing $15 billion diamond revenue in an interview to mark his 92nd birthday in March in 2016, saying Treasury had received $2 billion since diamond mining operations started in 2008.

There has not been any arrests made since, although a “witch hunt ” was launched in November of 2016. Dr Manyika, who is one of the several presidential aspirants, said Mnangagwa should be held accountable for the loot together with Vice Presidents Kembo Mohadi and Constantino Chiwenga. Continue Reading →

[DeBeers Greenhouse] Writer raising funds to build greenhouse in Attawapiskat – by Emma Meldrum (Timmins Daily Press – February 14, 2018)

TIMMINS – It’s far from a done deal, but if David Franks has his way, a greenhouse will be built in Attawapiskat First Nation thanks to the proceeds of his book.

Published late last year, 30 Days in Attawapiskat details “the observations and impressions of a once-proud, yet blissfully ignorant Canadian writer who spent a month on the fly-in First Nation reserve,” according to the description on Amazon. Half of net profits from that book will be used to design and build a community greenhouse on the reserve.

Franks was recently back in the community to talk to Chief Ignace Gull. The meeting left the writer “kind of stymied at the moment for where we can build this.” Gull told The Daily Press there simply isn’t space. “We don’t have space in the community for other buildings or structures. Everything has been designated for our housing project,” said the chief. Nearby Potato Island is an option. Continue Reading →

2017 US Holiday Jewelry Sales Rise, Reports Indicate Continued Economic Growth – by Russell Shor (gemological institute of America – January 19, 2018)

Holiday jewelry sales in the U.S. increased 5.9% in 2017, according to a Mastercard-SpendingPulse survey, and outpaced spending in general, which increased 4.9%. The survey found that jewelry buying was running behind other retail categories until the week before Christmas when sales surged. Mastercard’s survey results are typically a bit higher than others.

A Centurion survey of primarily upscale jewelry retailers found that nearly 60% reported sales increases (one-third of those over 10%), but many noted that the gains came despite decreased customer traffic – fewer buyers were spending more money.

Signet Plc, the largest jewelry chain, turned in a disappointing season, however. Declining traffic at shopping malls and problems with its credit program resulted in a sub-par season: a 5.3% decline in its same store U.S. sales and an 8% decline overall. Continue Reading →

Top jewellery brands failing to ensure gold, diamonds mined ethically, Human Rights Watch says – by Henry Sanderson (Financial Times – February 8, 2018)

Some of the world’s leading jewellery companies are failing to ensure that their gold and diamonds are mined ethically, according to Human Rights Watch, despite two decades of efforts to clean up the industry.

While the world has made progress limiting the flow of diamonds linked to conflict, so-called blood diamonds, leading brands such as Boodles, Rolex, Cartier and Bulgari are failing to do enough to show that all their gems are not linked to broader human rights abuses, the New York-based group said.

“An increasing number of customers want to be sure the jewellery they buy has not fuelled human rights abuses,” Juliane Kippenberg, associate child rights director at Human Rights Watch, said. Continue Reading →

War on blood diamond trade loses its lustre in age of digital smuggling – by Jon Yeomans (The Telegraph – January 28, 2018)

The diamond industry stands at a crossroads. The Kimberley Process, a scheme designed to certify that diamonds are “conflict-free”, is under pressure to reform.

Once regarded as a landmark agreement between industry, governments and NGOs, it has been attacked for widespread shortcomings. Can it restore confidence in the industry and can consumers be sure of what they are buying?

For years, the diamond business was dominated by mining house De Beers, which controlled global prices by buying and selling rough, unpolished diamonds from its rivals. Continue Reading →

Gahcho Kué adds vim to Anglo 2017 output numbers despite cuts – by David McKay (MiningMX – January 25, 2018)

ANGLO American turned in a robust fourth quarter production performance which took full year production on a copper equivalent basis some 5% higher compared to 2016, largely owing to good numbers at Kumba Iron Ore and De Beers, its 85% subsidiary.

Mark Cutifani, CEO of Anglo American, said the year-on-year improvement was despite cutting platinum and metallurgical coal output. “The ramp up of Gahcho Kué and Grosvenor mines made positive contributions to our production profile in 2017, and a strong performance from Sishen resulted in an 8% increase in production from Kumba Iron Ore,” he said in a statement.

Gahcho Kué is the De Beers’ newly commissioned diamond mine in Canada’s Northwest Territories. It reached nameplate production in the second quarter of the financial year. Continue Reading →