Christie’s has auctioned one of the rarest blue diamonds in the world for a staggering $44 million.
On Tuesday, the stone called the “Bleu Royal” went under the hammer as one of the highlights of the auction house’s Luxury Week sale in Geneva, far outstripping the presale estimate. It is the first time the stone has been sold at auction, having been in private hands for the past half century.
Set into a ring, the 17.61 carat, pear shaped diamond is considered the largest internally flawless vivid blue diamond to have ever come to auction, and had a presale estimate of $35 million. At the sale, it eventually realised $43.8 million, making it the most expensive jewel sold at auction this year.
Australia’s Lucapa Diamond has unearthed a 235 carat type IIa diamond from its prolific Lulo mine, the second largest recovered at the Angola operation since it opened in 2015.
The find comes barely a week after the recovery of a 208 carat diamond at the same mine, which is the third-largest ever recovered from Lulo.
The new diamond was dug up from Mining Block 550, immediately south of Mining Block 19, which Lucapa said is the area that has yielded eight precious rocks over 100 carats to date.
Not surprisingly, the mine is considered the world’s highest dollar per carat alluvial diamonds operation, in which Lucapa has a 40% interest. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.
The partners have now recovered 40 diamonds weighing more than 100 carats and four over 200 carats at Lulo. In 2016, only a year after beginning commercial production, Lulo produced the largest ever diamond recovered in Angola a 404 carat white stone later named the “4th February Stone”.
“Lulo continues to demonstrate it is a prolific producer of large diamonds. To unearth three +100 carat diamonds with two being over 200 carats in such a short space of time from different areas of the concession, makes us more determined to find the primary source, by dedicating even more resources to the exploration program,” Lucapa managing director, Nick Selby, said in the statement.
Angola is the world’s fifth diamond producer by value and sixth by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully lessening government regulations and restrictions in favour of a greater participation by private entities.
Growth at the retail division of Warren Buffett’s Berkshire Hathaway slowed in the third quarter amid a drop in customer traffic.
The unit which includes jewelry chains Borsheims, Helzberg Diamonds and Ben Bridge Jeweler saw sales increase 1% year on year to $4.85 billion, the company reported Saturday. That represented a gentler rise than the 5% gain the company noted the previous year. Pretax earnings for retail rose 4.5% to $414 million.
The decline in the number of shoppers was primarily at the conglomerate’s home furnishings businesses. However, strong sales of cars, which make up the largest portion of Berkshire’s retail division, offset that decrease.
Revenues from the manufacturing of consumer products, including jewelry maker Richline Group, grew 2% to $3.77 billion, while pretax earnings surged 78% to $483 million.
De Beers has signed an agreement with South Africa’s National Union of Mineworkers (NUM) that will avoid a threatened strike at the Venetia deposit.
The deal will provide workers at the South African mine with a wage increase of 7% in 2023, De Beers said last week. The employees will also receive a 6% hike in each subsequent year until April 30, 2028.
Workers will also be able to participate in the Employee Share Ownership Plans (ESOPs), it explained.
De Beers reached the agreement with NUM with the aid of the Commission for Conciliation, Mediation and Arbitration (CCMA) following four months of failed talks during which the NUM set out 10 initial demands. Three of those — related to shifts and overtime — were tabled, while six others have been settled. The wage debate was the only outstanding issue, but the breakdown in discussions drove NUM to plan a strike at the deposit. The agreement affects 1,500 of the mine’s workers.
“We are pleased that we reached a favorable outcome following a very tough negotiation process against the backdrop of challenging market conditions that continue to have an adverse impact on our business and the overall diamond industry,” said Moses Madondo, managing director of De Beers Managed Operations, which oversees the company’s mines in South Africa and Canada. “The agreement provides a measure of certainty to our employees for the next five years as we focus on ramping up the underground mine at Venetia, which is set to extend the life of mine to at least 2046.”
Visit rapaport.com/sanctions for facts and support. Martin Rapaport will fast for three days next week — Tues.-Thurs., Nov. 7-9 — to protest WDC’s support for Kimberley Process that certifies Russian diamonds. Trade is urged to fast for one day, Tuesday, Nov. 7, as WDC and KP meet in Zimbabwe. Prices of rounds stabilizing; 1 ct. RAPI +0.3% this week but -2.2% for Oct. Fancies still falling. Surat factories to close for three weeks over Nov. 12 Diwali holiday. NY DDC to hold Israel trade week Nov. 27-30.
Lucapa Diamond has recovered a 208 carat diamond at its prolific Lulo mine in Angola, the third largest ever found at the operation.
The company said the high quality, type IIa diamond was unearthed at the lizeria, or terrace area, of its Mining Block 31 portion of Lulo, known for delivering high value stones.
The diamond is also the second 100 carat plus stone Lucapa retrieved in October, following the recovery of a 123 carat, type IIa rough at the start of the month.
The mine, which hosts the world’s highest dollar per carat alluvial diamonds, began commercial production in January 2015. Only a year later, it delivered the largest ever diamond recovered in Angola a 404 carat white stone later named the “4th February Stone”.
Lucapa finds Lulo mine’s third largest diamond It is the second 100 carat plus diamond found at Lulo in October. The operation has delivered 39 diamonds weighing more than 100 carats each to date.
Lucapa has a 40% stake in the Lulo mine. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.
Angola is the world’s fifth diamond producer by value and sixth by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully being liberalized.
Gem Diamonds has recovered a 117.47-carat rough from its Letšeng mine in Lesotho, its fourth over 100 carats so far this year.
The miner discovered the gem-quality, type IIa diamond on October 29, it said Tuesday. The find follows that of a 101.96-carat high-quality rough on September 28, and a 163.91-carat yellow diamond on June 22. The company also unearthed a 122-carat stone on March 5.
Letšeng has been known for producing high-quality rough diamonds topping the 100-carat mark, but recently that supply has been dwindling. However, the newest recovery brings this year’s total to a tie with last year, when the miner also retrieved four diamonds in that category. That compares with six in 2021 and 16 in 2020.
The declining number of special-size stones has put a dent in the company’s revenue, with sales falling 28% year on year to $71.8 million in the first six months of 2023. The miner incurred a loss of $1 million, versus a profit of $3.8 million during the same period in 2022.
Internal diamond crystals are small diamond inclusions or crystals that are enclosed within a larger diamond. These internal diamond crystals can take various forms, and their presence is a common characteristic in many diamonds.
Here are a few key points about internal diamond crystals:
Nature of Inclusions: Internal diamond crystals are typically tiny diamond fragments or crystals that were present in the diamond-forming environment when the host diamond was growing. These internal crystals can vary in size and shape.
Inclusion Types: Internal diamond crystals are a type of inclusion. Inclusions in diamonds can also include non-diamond materials like minerals, other types of crystals, or even gas bubbles.
Impact on Clarity: The presence of internal diamond crystals, like other inclusions, can affect a diamond’s clarity. The size, type, and visibility of these inclusions play a role in determining a diamond’s clarity grade, which is one of the factors used to evaluate a diamond’s overall quality and value.
Grading and Certification: When a diamond is sent to a Internationally recognised gemological laboratory, such as the DCLA, GIA , HRD, AGS or IGI for grading and certification, the presence of internal diamond crystals, as well as other inclusions, is documented in the diamonds grading report.
Visibility: The visibility of internal diamond crystals can vary widely. In some cases, these internal crystals may be barely visible even under magnification, while in other cases, they may be more apparent.
It’s important to note that the presence of internal diamond crystals does not necessarily make a diamond less valuable. The overall beauty and value of a diamond depend on various factors, including the “Four Cs” (carat weight, cut, color, and clarity), as well as the specific characteristics of the inclusions and their impact on the diamond’s appearance.
Stornoway Diamonds has suspended operations at its Renard mine in Canada amid the prolonged slowdown in demand for rough.
“The growing uncertainty of the diamond price in the short and medium term, coupled with the significant and sudden drop in the price of the resource on the world market, has had a major impact on the company’s long-term financial situation,” Stornoway said Friday. “This was in part due to the halt in the import of rough diamonds to India, and [in part to] the global geopolitical climate.”
The company will put Renard on care and maintenance to “preserve the assets and facilitate a rapid return to normal operations,” it explained. It will keep 75 of its 500 workers on staff to perform necessary tasks.
Stornoway will also seek creditor protection under the Canadian Companies’ Creditors Arrangement Act (CCAA), which allows financially troubled corporations owing more than $5 million to restructure their businesses and avoid bankruptcy. As part of this effort, the miner is “implementing a process for soliciting investment and sale proposals,” it added.
The Indian diamond-manufacturing sector announced in September that it was implementing a two-month moratorium on rough imports, from October 15 to December 15, to help reduce some of the oversupply that has built up in the midstream due to weak industry demand.
This is not the first time Stornoway has sought creditor protection under CCAA. In 2019, one of its creditors, Osisko Gold Royalties, acquired and revived the company during a restructuring process. Under the new ownership, the miner restarted operations in 2020 following a six-month halt due to Covid-19.
Botswana’s state-owned Okavango Diamond Company (ODC) has temporarily halted its rough stone sales as part of an industry-wide drive to reduce the glut of inventory caused by lower global demand for jewelry, its managing director Mmetla Masire said on Tuesday.
ODC, which reported a record $1.1 billion in revenue in 2022, holds 10 auctions a year to sell its 25% allocation of production from Debswana Diamond Company, a joint venture between Anglo American’s (AAL.L) De Beers and Botswana, in terms of the partners’ gem sales agreement.
Debswana produced about 24 million carats last year, with ODC getting an allocation of about 6 million carats.
The company has cancelled its November auction and a decision on the December sale is still to be made as the industry battles slowing demand for cut and polished diamonds in the U.S and China, Masire said.
“For the first time, we have had to build up inventory as we do not want to just irresponsibly release goods into a market which is already oversupplied,” Masire said in an interview. “For now, we have stopped the auctions, we will decide on the December auction.”
Last month, trade bodies in India, which cuts and polishes 90% of the world’s rough diamonds, urged members to halt rough diamond imports for two months to manage supplies and aid prices due to weak demand.
In August, De Beers said it would allow its customers to defer some of their purchases for the rest of the year.
As part of a new agreement between De Beers and Botswana, ODC’s allocation is set to rise to 7 million carats. Masire said the company was working on introducing contract sales, a model that De Beers uses to sell 90 % of its supply, among other new sales channels.
“We are still to decide on what percentage of our allocation will be sold through contract sales to complement our auctions,” Masire said. “We are likely to have two-year sales contracts and we are looking at going into partnership with only a limited number of buyers so that we can better serve them.”
