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Diamonds – Mining, Lab-Grown and Conflict/Blood

Zimbabwe orders diamond mines shut, says not nationalising – by MacDonald Dzirutwe (Reuters Africa – February 22, 2016)

http://af.reuters.com/

HARARE (Reuters) – Zimbabwe ordered diamond mining firms to stop operations immediately on Monday and leave the Marange fields as their licences have expired but denied the government was seizing the mines.

The diamond fields in the east of Zimbabwe near Mozambique are mined by nine firms. Eight, including two Chinese-run companies, are joint ventures 50 percent owned by the government and the other one is wholly owned by the state.

“The JV companies neglected or failed to renew the special (mining) grants. Some expired as far back as 2010 and others in 2013,” Mines Minister Walter Chidhakwa told reporters and executives from the mines in question.

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The Largest Diamond Ever Found In Angola Is 404 Carats And Nearly Flawless – by Trevor Nace (Forbes Magazine – February 17, 2016)

http://www.forbes.com/

An astounding 404.2-carat diamond, the largest diamond ever discovered in Angola , was recently unearthed. This diamond, at almost 3 inches wide is the width of a credit card and virtually flawless. The Australian diamond mining company Lucapa Diamond Company is the lucky owner of the now 27th largest diamond in the world!

The large diamond is even more rare given its Type IIa rating, 2nd from the highest rating possible for diamonds. Type IIa diamonds make up only 1 to 2% of the world’s diamonds and contain very little to no nitrogen atoms.

Pure diamonds are comprised of rigid carbon lattices, however, most diamonds have imperfections including nitrogen atoms. A typical Type IIa diamond will command a 5 to 15% premium and could be more in rarer large diamonds.

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Behind the scenes with DMCC chief at Caracas diamond talks – by Frank Kane (The National – February 16, 2016)

http://www.thenational.ae/

CARACAS // The UAE has been handed a 24-carat challenge: how to get the disparate voices and conflicting interests of the international diamond business acting in unison for the good of an industry that is facing serious issues.

Last week, Ahmed bin Sulayem, best known as the force behind the Dubai Multi Commodities Centre – the DMCC, where the emirate’s diamond industry has flourished over the past decade – took the first steps towards meeting that challenge in crisis-torn Venezuela.

The 38-year-old DMCC chairman was the person chosen by the UAE Ministry of Economy to take up the chairmanship of the Kimberley Process (KP), which was set up in 2003 to stem the flow of “blood diamonds” on to the world’s markets. It has proved to be a controversial organisation.

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[DeBeers diamond mining and Attawapiskat] Negotiation Is Better Than Conflict – by Xavier Kataquapit (NetNewsLedger.com – February 10, 2016)

http://www.netnewsledger.com/

Xavier Kataquapit is a First Nations writer and columnist, who is originally from Attawapiskat Ontario on the James Bay coast.

THUNDER BAY – My people have come a long way in obtaining a life with more opportunity and hope. Through education First Nation people all over Canada are moving into leadership roles in government and private enterprise in Native initiatives and non Native as well. We have very intelligent, well educated, strong and capable leaders in politics, law, education, business and every sector of Canadian society.

I have seen much progress in First Nations first hand with the communities that make up Wabun Tribal Council up here in Northeastern Ontario. Over the past 20 years I have watched these First Nations led by their Chiefs and supported by an administration headed by Shawn Batise as they began to lobby government and the private sector resource industries. Over the years Wabun has become internationally known for negotiating all kinds of agreements with government and the private sector that provide benefits to Wabun First Nations.

Wabun is well recognized across Canada for its expertise in this area and Shawn and the Chiefs have shared their knowledge with other Native organizations. For so many years Native people were very much left out of the loop when it came to participating in any development on traditional lands.

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De Beers halts exploration of diamond mine near Attawapiskat, Ont. (CBC News Sudbury – February 08, 2016)

http://www.cbc.ca/news/canada/sudbury/

Bulk sampling of mine extension may be pushed back as First Nation voices concerns

The De Beers diamond company has ceased exploration of the Tango extension near the Victor mine due to local pushback. The Victor mine is located in the James Bay lowlands of northern Ontario, and is the province’s only diamond mine.

DeBeers is hoping to extend mining operations into a nearby deposit called Tango, but first needs to determine it’s feasibility. The company said the exploration is required as the Victor mine enters its final years.

Tom Ormsby, a spokesman for De Beers Canada, said the company has halted its plan to take a bulk sample of the new mining grounds.

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An Open Letter to Leonardo DiCaprio: Taking issue with the star’s rationale for backing a lab-grown diamond company – by Rob Bates (JCK Online.com – January 28, 2016)

http://www.jckonline.com/

Through editorially independent, in-the-know, and compelling journalism, JCK magazine offers readers expanded coverage of the most important jewelry industry issues and style trends impacting their businesses.

Dear, um, Leo:

Back in 2006, before Blood Diamond was released, Nelson Mandela reached out to the stars of the movie and the head of Warner Brothers, worried about its impact on diamond sales and, by association, economies in Africa. You later met with him in Africa.

You seemed to be profoundly impacted by your meeting with one of the great figures of the 20th century. You told one interviewer: “Ultimately, diamonds are a source of social and economic stability in Africa, so this movie isn’t to say people shouldn’t buy diamonds.”

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Legal, illegal Mozambique rubies and legal Angola diamonds in the spotlight – by Keith Campbell (MiningWeekly.com – January 29, 2016)

http://www.miningweekly.com/page/americas-home

Mozambique mining company Montepuez Ruby Mining Limitada has made public its concerns about unfair competition by illegal miners.

The company operates a ruby and corundum mine at Namanhumbir, in the Montepuez district, which lies in the southern region of Cabo Delgado Province. It is 75%-owned by British (London Stock Exchange Aim-listed) enterprise Gemfields and 25% by local business Mwiriti Limitada.

Montepuez Ruby Mining chairperson Asghar Fakir told the Notícias newspaper that illegal mining was still a common occurrence in the area, despite a small decline.

“The phenomenon is not yet fully under control,” he said.

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Opinion: Colonial legacy of mining pioneers poses a dilemma for South Africans -by Prince Mashele (Mail and Guardian – January 25, 2016)

http://mg.co.za/

The Portuguese set foot in South Africa in the 15th century, and the Dutch settled at the “Cape of Storms” in 1652. But the noses of the first interlopers into southern Africa were not sharp enough to fore-smell Kimberley’s hidden diamonds or the Witwatersrand’s entombed gold.

Diamonds were only discovered in 1867 at Kimberley, and, 19 years later, gold on the Witwatersrand.

The group – of mainly Englishmen and Jews – that descended on Kimberley, following the discovery of diamonds was largely the same bunch of money-mongers who flocked to the Witwatersrand when news of gold broke.

By the time the Witwatersrand became the new Mecca of wealth seekers, Kimberley had already produced a diamond cartel led by Cecil John Rhodes –

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Deninu Kue First Nation takes fight for benefits to new Indigenous Affairs minister (CBC News North – January 19, 2016)

http://www.cbc.ca/news/canada/north/

Wants compensation for not having IBAs with first 3 diamond mines unlike other Akaitcho First Nations

The Deninu Kue First Nation hopes the new federal government will do more to help get it benefits from the Northwest Territories’ diamond mines.

The First Nation is based in Fort Resolution on Akaitcho Territory. Unlike the two other Akaitcho First Nations — the Yellowknives Dene and Lutselk’e — Deninu Kue was excluded from impact benefit agreements (IBAs) with the owners of the Ekati, Diavik and Snap Lake diamond mines because its settlement is on the south side of Great Slave Lake.

“What they’re saying is we’re on the south shore of the lake and all the mining’s on the north shore, but … we’re still negotiating for lands, so we should be part of all IBAs that were given to the other [Akaitcho] First Nations,” said Deninu Kue Chief Louis Balsillie.

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Between Rocks and a Hard Place in Africa – by John Feffer (Foreign Policy – January 11, 2016)

http://foreignpolicy.com/

Botswana squeezes more money from diamonds than any other country. Why are its citizens among the poorest in the world?

GABORONE, Botswana — A large billboard on the side of the road urges residents of this dusty capital city to restrict their showers to under three minutes. Even now, during the rainy season, Gaborone is experiencing a severe water shortage. At the luxury casino resort hotel where I stayed on a recent trip, water flowed from the taps only a few hours each day.

The current water shortage offers a stark reminder that Botswana — an arid, land-locked country just north of South Africa — has always been at the mercy of the elements. For its entire post-independence history, the most important element for Botswana has been carbon — the fanciest grade.

The discovery of diamonds in the late 1960s propelled the country from a GDP per capita of $70 to its current upper-middle-income status of roughly $16,000, close to the highest in Africa.

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Surat firms upbeat as prices of polished diamond recover in Jan – by Melvyn Reggie Thomas (Times of India – January 11, 2016)

http://timesofindia.indiatimes.com/

Surat: The new year has ushered in a positive note for the diamantaires in Surat. After facing a sharp decline in 2015, the polished diamond prices recovered in the new year giving hope to diamantaires over improved market condtions.

According to US-based Rapaport group, the certified polished diamond prices in various category rose by 0.50% to 4.7%. The increase was recorded for the first time after the polished diamond prices witnessed a continuous decline in 2015. According to Rapaport’s Rapnet Price list, the polished diamond prices in various categories decreased between 5.8% and 14.5% last year.

Market sources said that the polished diamond market sentiment improved in December due to shortages supporting prices and dealers filling last-minute holiday orders.

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In Canada’s far north, warm weather threatens vital ice road – by Susan Taylor (Reuters U.S. – December 24, 2015)

http://www.reuters.com/

Each winter, in the far reaches of Canada’s north, a highway of ice built atop frozen lakes and tundra acts as a supply lifeline to remote diamond mines, bustling with traffic for a couple of months before melting away in the spring.

This year, the world’s busiest ice road is running late. Unseasonably warm weather has set back ice formation on the Tibbitt to Contwoyto Winter Road, named after the first and last of hundreds of lakes on the route.

The road is still expected to open on schedule in late January, but if current weather patterns continue that could mean more work for crews trying to build the ice or cut the road’s already short period of operation.

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Dominion Diamond stock surges after hedge fund pushes for overhaul – by Ian McGugan (Globe and Mail – December 23, 2015)

http://www.theglobeandmail.com/

Shares of Dominion Diamond Corp. jumped on Tuesday following news that a Toronto-based hedge fund is pressing for sweeping changes at the Arctic miner.

K2 & Associates Investment Management Inc. released a letter on Monday in which it said it represented a group of investors that had collectively amassed a 5.4-per-cent stake in Dominion, the world’s third-largest producer of rough diamonds by value.

Josef Vejvoda, a portfolio manager at K2, wrote in the letter that Dominion’s share price has “suffered excessively and unnecessarily as a result of misguided policies and missed opportunities.” He pushed for a meeting with independent directors of the Toronto-based miner to discuss how to halt “the continued erosion of shareholder value.”

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DIAMONDS: CPAWS very wrong about Victor mine – by Marilyn Scales (Canadian Mining Journal – December 22, 2015)

http://www.canadianminingjournal.com/

Remember hearing that “A little knowledge is a dangerous thing”? Here is a contemporary corollary: “Especially when you cherry-pick your facts to make another look bad.”

The case in point is the report circulated by the Canadian Parks and Wilderness Society’s (CPAWS) Wildlands League. In it the organization accuses De Beers

Canada and its Victor diamond mine in northern Ontario of environmental offenses. CPAWS calls the situation a failure of self-monitoring and urges independent monitoring and reporting.

“The report is greatly misleading,” De Beers Canada’s senior external and corporate affairs manager Tom Ormsby said when contacted by CMJ.

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Why It’s So Hard to Put a Price on the World’s Biggest Diamonds – by Thomas Biesheuvel (Bloomberg News – December 22, 2015)

http://www.bloomberg.com/

When miners unearth the world’s biggest and rarest of diamonds — like the golf-ball-sized, 357-carat rock found this year in the southern African kingdom of Lesotho — figuring out what they are worth can prove almost as difficult.

Gem Diamonds Ltd., which specializes in digging up stones that only a few billionaires are likely to buy, has been taking some unusual steps to confront that dilemma. The London-based mine owner is replicating on a small scale what middlemen normally do.

It cuts, polishes and re-sells some diamonds to get a better sense of what the market is for the world’s biggest ones. In September, the company had its biggest sale ever when its prized discovery from Lesotho fetched $19.3 million.

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