Anglo Buys 85% of De Beers Diamonds

Botswana produces more gem quality diamonds  from sparsely populated country than any other nation. Anglo formally offered the Botswana government a pro-rata share of the Oppenheimer family’s 40% stake under a long-standing pre-emption agreement.

Botswana never exercised the right to raise its shareholding in the company to 25% from 15%. The reason given it, would have cost it $1.3 billion. at a time when it is striving to contain government spending,

De Beers remains the world’s largest Gem quality diamond producer by value.

HRD Opens new Lab in Mumbai

The new HRD Antwerp lab is located in the heart of the new diamond district.

HRD offers quality certification services in accordance with the IDC that reflect its pledge to ensure compliance with the same stringent quality standards applied in Antwerp, where its parent lab is located. The new facility is staffed with both local and Antwerp expert gemmologists.

De Beers Profit -44%

De Beers groups sales declined 14%as earnings fell to $386 million in the first half of 2012,  

De Beers observed tight liquidity persisted in India although that DTC prices ‎remained stable.

DTC sightholders were seeing high inventories in the cutting centers. De Beers Jewellers saw a decline in the ‎high-end market.

De Beers mining giant expects trading to remain week in the second half of 2012, but anticipates global diamond jewellery sales to see slight growth.

The Us and Europe are expected to remain weak. ‎With China, Japan and the Gulf contributing the bulk of ‎the growth.

Zimbabwe Govt okays total control of diamond mines

Zimbabwe plans to enforce a 100% ownership of diamonds, among a raft of measures designed to leverage on the country’s mining sector.

The move is set to plug leakages and ensure that the country benefits from its natural resources. The move is likely to set government on a collision course with investors already operating in the diamond industry.

In his mid-term fiscal policy review on Wednesday, Finance minister, Tendai Biti, said government had approved a diamond policy to enforce government’s 100% ownership of diamonds.

Biti said government had also approved the enactment of the Diamond Exploration Act that issues a directive to prohibit the exportation of unpolished or uncut diamonds.

He said there would be immediate separation of diamond mining from marketing.

CIBJO President addresses the ECOSOC High Level Segment

 

CIBJO President Gaetano Cavalieri has addressed the annual High Level Segment of the Economic and Social Council (ECOSOC) of the United Nations in New York, expressing the concern of the jewellery industry that the global economic crisis is affecting job creation in the business sector, and consequently is undermining the fight against poverty. 

 

The focus of this year’s ECOSOC High Level Segment was the global job crunch, and the need to stimulate the creation of decent and sustainable employment. The theme of the event was "Promoting productive capacity and decent work to eradicate poverty in the context of inclusive sustainable and equitable economic growth at all levels for achieving the Millennium Developments Goals (MDG)." Speaking at the opening, ECOSOC President Milos Koterec put the figure of unemployed at 205 million worldwide, and said that "work is worryingly difficult to find, and finding decent, meaningful work, harder still."  

 

ECOSOC is the UN forum in which representatives of government, business and civil society discuss the world’s economic, social and environmental challenges, and policy recommendations are made. More than 500 delegates attended the High Level Segment in New York, where CIBJO was the world jewellery industry’s sole representative. CIBJO has held consultative status in ECOSOC since 2006.  

 

Delivering his remarks to the High Level Segment, Dr. Cavalieri expressed the jewellery industry’s continuing support for the United National development objectives. "We strongly promote at CIBJO the 10 Global Compact Principles for our industries as well as our support for the achievement of the UN Millennium Goals by 2015," he said.  

 

However, noted the CIBJO President, "global recession and the current world financial crisis are accelerating poverty worldwide, and this is defeating the first Millennium Development Goal to eradicate poverty. Chronic unemployment figures and the social exclusion of millions of the world’s youth must be resolved to avoid a lost generation of young workers." 

 

Dr. Cavalieri described to participants at the ECOSOC meeting programmes that have been undertaken to stimulate grass-roots economic and social development in the countries and regions in which the jewellery and gemstone sectors are active. This includes the establishment in 2011 in Antwerp by CIBJO with partners of an International Training Centre for Corporate Opportunities (ITCCO), which provides training to a young generation from developing countries, in order to help them adapt to the new business environment, improve their skills and create jobs which can compete in the global market. 

 

"We believe that it is the duty of each and every industrial sector to provide training opportunities for the younger generations, in order to better prepare them for the evolving labour market which now operates in a very competitive global environment," the CIBJO President said. "Education and training are a prerequisite for the eradication of poverty in the world."  

 

During his stay in New York, Dr. Cavalieri held a private meeting with Ambassador Luis Alfonso de Alba, the vice president of ECOSOC. Also serving as the Permanent Representative of Mexico to the United Nations and other international organizations in Geneva, Ambassador de Alba earlier served as the first ever President of the United Nations Human Rights Council.  

 

At an ECOSOC side event, Dr. Cavalieri was a participant in a panel discussion at the UN Headquarters looking at the impact of the financial crisis on youth unemployment in partnership with "The Global Foundation for Democracy and Development." Among the other panel members were representatives of the Dominican Republic, the Special Coordinator for Civil Society in Office of the President of the 66th Session of the UN General Assembly, and the head of the office for ECOSOC Support and Coordination.  

 

The panel discussion recognized that young people are playing an increasingly important role in social movements calling for democracy, equal opportunities and better employment, but noted UN data that indicates that they are three times more likely than adults to be unemployed. Dr Cavalieri concluded the panel on youth unemployment by stressing "the importance of giving youth our testimony on going forward in life and bringing the basic principles of family with them."  

 

The 2012 ECOSOC High-Level Segment concluded with the adoption on July 10 of a draft ministerial declaration that had been submitted by the president. The resolution encourages strong collaboration and partnerships in order to address the challenges of youth unemployment. Furthermore, it urges the sharing of experiences and effective practices, along with the creation and strengthening of youth programmes, such as the United Nations Volunteers, that focus on employment.

Anglo – De Beers deal clears first hurdle

Oppenheimer family’s 40% stake in De Beers has been approved by the Department of Mineral Resources

The $5,1bn purchase of the Oppenheimer family’s 40% stake in De Beers by Anglo American has completed one hurdle of the sale.

Anglo has opted to grow aggressively in diamonds field unlike BHP Billiton and Rio Tinto who are seeking buyers for their diamond assets.

The Botswana government has the option to lift its holding to 25%, buying part of the Oppenheimer stake. They currently have a 15% stake in De Beers.

De Beers two major mines Jwaneng mine in Botswana and Venetia mine in South Africa produce most of the gem quality diamonds contributing to De Beers production.

Capital Markets have forecast soft prices for rough diamonds. But De Beers CEO Philippe Mellier has said the longer-term outlook for diamonds is strong, with strong demand from China and India for diamond jewellery.

 

Rough diamond prices to remain under pressure.

The rough diamond market is in a difficult phase, with slowing diamond sales, falling prices and continued tight liquidity in the diamond cutting centres.
 
Weaker economic prospects in China have negatively impacted on the short-term outlook for the market despite the second half of the year traditionally providing better results than the first half.
 
The traditional Indian wedding season will also remain uncertain and unpredictable this year.
 
The DTC (Diamond Trading Company) sales have fallen short of its predicted Five hundred million in sales yielding only Four Hundred and Fifty million for the first two quarters of 2012.
 
The trading company has allowed sightholders to defer an estimated One Hundred million in rough diamond purchases for June into July.
 
De Beers CEO Philippe Mellier said that a scarcity in rough diamonds would drive the rough prices up and cause the luxury status of diamonds to intensify.

Diamonds go on display to mark Queen’s Jubilee

The exhibition features some of the most spectacular pieces from the monarch’s private collection.
 
The exhibition shows how over the past three centuries monarchs have used diamonds to display magnificence, whether in personal adornment or as a statement of power.
 
From the diminutive diamond crown worn by Queen Victoria throughout her widowhood, to the breath-taking Coronation Necklace, featuring a staggering 22.48 carat pendant.

European Union diplomats are touring the controversial Marange diamond fields.

REVENUE FROM DIAMONDS IS SET TO CONTRIBUTE US$600 MILLION TO FISCUS THIS YEAR.

The diplomats will visit four companies, Mbada, Marange Resources, Diamond Mining Corporation (DMC) and Anjin. They will also visit the ZRP Diamond Base.

Diamonds from Marange have courted controversy amid calls by civil society organisations that there is no transparency in the marketing of the gems.

Finance minister Tendai Biti has been complaining that Anjin has not been remitting money to treasury. Anjin is a joint venture between the Chinese and the Zimbabwe Defence Industries.

Biti has said despite claims that the Zimbabwe Mining Development Corporation (ZMDC) owns Anjin, the state entity had no equity in the diamond producer.

 

DCLA updates Diamond Colour Master Set

DCLA is updating several master colour grading stones from the Official IDC Master Set.

The current diamond colour master stones D, E, F ,G, H, I and J are being retired and are now on sale collectively for AUD$52,000.

Offers of interest to purchase these stones can be submitted in writing to [email protected] for consideration.