Diamonds – Mining, Lab-Grown and Conflict/Blood – Page 52

Discovery adds sparkle to ailing sector – by Nelson Bennett (Business In Vancouver – December 15, 2015)

December 15, 2015

https://www.biv.com/

On November 19, Lucara Diamond Corp. (TSX:LUC) stock shot up 30%, closing at $2.10 per share on news that the Vancouver junior mining company had just made the second-biggest diamond discovery in history.

The diamond, a 1,111-carat Type IIa stone found three days earlier at the company’s Karowe mine in Botswana, was spectacular news for a sector that has otherwise been struggling with falling diamond prices and high operating costs – both of which were blamed for De Beers’ recent decision to shutter its Snap Lake mine in the Northwest Territories.

Lucara announced its historic find on November 18; the next day, it announced it had also pulled up an 813-carat white diamond (the sixth-largest) and a 374-carat stone.

De Beers does the unthinkable – by Gary Vivian (Northern News Service – December 14, 2015)

December 14, 2015

http://www.miningnorth.com/

Guest Editorial by Gary Vivian, President, NWT & Nunavut Chamber of Mines.

De Beers deserves a huge thank you from Northerners for doing what many might believe is the unthinkable. Let me be the first to say it: “Thank you De Beers for Snap Lake”. Lest readers think that I mean closing their mine, I do not. What is quite unthinkable is this.

De Beers came to the NWT in 2005 and brought with them $975 million of their own money to build a diamond mine.

They spent that, and went on to spend over $2.3 billion to construct and operate the mine. Through their supportive northern business policy, they spent over $1.5 billion with northern businesses and joint ventures.

Diamonds are forever; is Anglo American? – by OLIVIA KUMWENDA-MTAMBO AND FREYA BERRY (Reuters U.S. – December 10, 2015)

December 11, 2015

http://www.reuters.com/

JOHANNESBURG/LONDON – Anglo American’s plans to shut or sell dozens of loss-making mines have failed to halt a dramatic slide in its share price and it may need to sacrifice stronger parts of the business or raise cash from shareholders to pay down its debt.

The company, which grew from gold fields near Johannesburg to dominate diamond, platinum and, to some extent, iron ore markets, is one of many miners struggling with a fall in commodities’ prices driven by lower demand from China.

That makes selling assets that much harder. Anglo’s shares have slumped 11 percent since it announced the biggest restructuring in its nearly 100-year history on Tuesday, leaving it with a market value of $6.7 billion, down from $27 billion a year ago.

Gahcho Kué diamond mine co-owner welcomes influx of Snap Lake workers – by Mitchel Wiles (CBC News North – December 8, 2015)

December 9, 2015

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

One of the owners of N.W.T.’s Gahcho Kué diamond project says scooping up about 100 employees from the closing Snap Lake mine will have a “positive impact” as the project races toward first production in 2016.

Gahcho Kué is hiring more staff for what it calls “operational readiness.” According to Patrick Evans, CEO of Mountain Province Diamonds, employees laid off from Snap Lake, just 90 kilometres away, are turning out to be ideal candidates.

“It’s going to have quite a positive impact,” said Evans. “We are able to get fully trained, inducted, and experienced employees.”

Evans said 41 Snap Lake employees have already transferred to the project, and another 60 will follow next year.

NWT Chamber of Commerce News Release: Mine Development an Imperative for the NWT

December 9, 2015

Now is the Time for Public Infrastructure Projects to Move Forward

Yellowknife – December 08, 2015 – Global commodity markets are taking a toll. De Beers Canada’s Snap Lake Mine is the latest project to fall prey to declining prices. Diamond price experts at Roughprices.com reports that average world diamond prices have declined 18% year-over-year.

“This is clearly a blow to our economy,” said Kevin Diebold, President of the NWT Chamber of Commerce. “The diamond mines’ direct and indirect benefits contribute close to 40% of the NWT’s GDP, the largest private sector contributor to the economy. It’s an industry worth protecting and one we have to grow.”

Anglo Australian – by Warren Dick (Mineweb.com – December 8, 2015)

December 9, 2015

http://www.mineweb.com/

Mark Cutifani is stamping his own signature on Anglo – but is it enough?

He’s neither Anglo, nor American. But its taken an Australian, Mark Cutifani – presumably with the assistance of a good old fashioned Kookaburra cricket bat – to to try and beat what was once the world’s premier mining company back into shape.

At the very least, the announcements made at Anglo’s investor day on Tuesday revealed the company – and the executive team driving the change – had realised the cold, hard reality of the situation they found themselves in, and are prepared to do whatever it takes to see out the most brutal of winters in commodity markets.

World’s largest diamond mine set to open in Canadian Arctic – by Levon Sevunts (Radio Canada International – December 7, 2015)

December 8, 2015

http://www.rcinet.ca/en/

The Gahcho Kué diamond mine in the Northwest Territories is more than 80 percent complete and on track to begin production in 2016, Mountain Province Diamonds Inc. announced Monday.

“Key areas of focus over the next six months are commissioning of the primary crusher and diamond plant, as well as preparation for operational readiness,” Patrick Evans, Mountain Province President and CEO said in a statement.

Mountain Province Diamonds is a 49% participant with De Beers Canada in the mine, located approximately 300 kilometres northeast of territorial capital Yellowknife.

Namibia: Diamond Beneficiation in Crisis (All Africa.com – December 4, 2015)

December 4, 2015

http://allafrica.com/

The fortunes of the diamond value chain would be better served through a simpler structure as opposed to the extremely complex approach currently used. Such an re-alignment will be the driving force for polished diamond value growth.

The Chief Executive of Forevermark and the De Beers Group, Stephen Lussier alluded to a simplification of the diamond value chain in his speech before the second International Diamond Conference, titled, Omugongo, held last week in Windhoek.

More than 50 international industry experts, academics, business leaders and manufacturers converged on Windhoek for this landmark two-day conference.

NEWS RELEASE: Snap Lake Mine to be put on care and maintenance

December 4, 2015

Mining to cease immediately

TORONTO, Dec. 4, 2015 /CNW/ – The De Beers Group of Companies today announced it has placed its Snap Lake mine on care and maintenance. The decision follows a review of the mine’s operation, particularly in light of current market conditions.

De Beers will evaluate market conditions over the next year to determine the potential of the ore body as a viable mine.

Work to suspend production at Snap Lake has begun, and is expected to last between one to nine months. During the care and maintenance period, environmental monitoring and work required under the mine’s permits will continue.

De Beers may consider closing N.W.T.’s Snap Lake diamond mine – by Hilary Bird (CBC News North – December 3, 2015)

December 3, 2015

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

De Beers Canada says it’s unsure of the future of its Snap Lake diamond mine, given a downturn in diamond prices and a costly water problem that required a licence amendment.

The Snap Lake mine, located 220 kilometres northeast of Yellowknife, was De Beers’ first diamond mine outside of Africa. It opened in 2008 and was projected to have a mine-life of 20 years.

Officials with De Beers told CBC on Wednesday that they’re looking at many options including shutting down the mine.

NEWS RELEASE: Rio Tinto unveils 187.7 carat Canadian diamond

December 2, 2015

Rio Tinto has unveiled one of the largest diamonds ever discovered in Canada.

The 187.7 carat gem-quality rough diamond, known as The Diavik Foxfire, was discovered at the Diavik Diamond Mine in the remote Northwest Territories of Canada, 220km south of the Arctic Circle.

The Diavik Foxfire diamond was showcased during an exclusive preview at Kensington Palace in London.

Rio Tinto Diamonds managing director Jean-Marc Lieberherr said “We are delighted to showcase this exceptional, two billion-year-old Canadian diamond.

A diamond is forever. Demand, not so much: The strange economics behind a rock’s worth – by Claire Brownell (National Post – November 28, 2015)

November 30, 2015

The National Post is Canada’s second largest national paper.

A young couple passes an elderly one on a walking path, as an acoustic guitar plays the melody to “Stand By Me.”

The younger woman turns around and smiles. Her fiancé closes his hand around hers, which sparkles with a whopping diamond ring. They look at each other and smile again. “There are two things in the world that last longer than time,” says a voiceover. “Love is one of them. A diamond is forever.”

Just over a week ago, Canada’s Lucara Diamond Corp. announced that it had discovered an 1,111 carat gem-quality diamond in Botswana, the second-largest ever recovered.

Call for De Beers chief to step aside – by Allan Seccombe (Business Day Live – November 26, 2015)

November 27, 2015

http://www.bdlive.co.za/

A PROMINENT diamond industry player has called for De Beers CEO Philippe Mellier to step down and make way for someone who better understands the business.

Martin Rapaport, chairman of the Rapaport Group, has also demanded that De Beers and others drop prices for rough diamonds by up to 50% to save the ailing industry.

The global diamond sector has run into severe problems after years of poor decisions in financing the purchasing of rough diamonds by banks, pricing and production by mining companies, and the way the industry treated easy and abundant finance.

Taking specific aim at De Beers, Mr Rapaport, who analysts describe as highly regarded and influential in the polished segment, said the company, 85%-owned by Anglo American, was inflicting damage on the industry.

Pope: Blood diamonds fuel terrorism (News 24.com – November 27, 2015)

November 27, 2015

http://www.news24.com/

Nairobi – Pope Francis on Thursday urged global action against illegal trafficking of blood diamonds, ivory and other natural resources, saying it caused political instability and “terrorism”.

“Illegal trade in diamonds and precious stones, rare metals or those of great strategic value, wood, biological material and animal products, such as ivory trafficking and the related killing of elephants, fuels political instability, organised crime and terrorism,” he said in a speech in the Kenyan capital, Nairobi.

“We cannot be silent about forms of illegal trafficking which arise in situations of poverty,” he said, just two weeks before Nairobi hosts a key ministerial meeting of the World Trade Organisation.

Rough diamond bubble bust (Part 2) – by Martin Rapaport (Miningweb.com – November 25, 2015)

November 26, 2015

http://www.mineweb.com/

What can be done to save the diamond trade?

So how do we get out of this mess? While a comprehensive plan detailing all the necessary initiatives is beyond the scope of this article, there is one vital emergency measure that must be taken. The mining companies must urgently inject profitability into the diamond trade, by immediately reducing rough prices by 30 percent to 50 percent.

Discussion issue 1

Many in the trade oppose lower rough prices because they think this will not increase demand. They miss the point that the primary reason for the rough price drop is to rapidly and effectively increase profits and liquidity in the trade. An increase in demand due to a rough price drop is an added benefit.