Argyle – Page 2

Argyle Diamond Mine Closure: The End of a Sparkling Era

Pink and red diamonds are among the most special gems in the world. The value of these highly sought-after natural stones speaks for itself, but their rarity has arguably increased since the closure of Rio Tinto’s Argyle mine.

The asset, which ceased mining activity on November 3, 2020, had been in operation since 1983. In that time, 865 million carats of rough diamonds were produced.

The unique geological chemistry of the Western Australia location birthed the rarest hues, including champagne, cognac, blue, violet and of course, the coveted Argyle pink and red diamonds. Millions of carats of white diamonds were produced at the prolific property as well.

After 37 years of output, Argyle’s closure came at a time of flux for the diamond market. The sector has been dealing with reduced demand caused by the COVID-19 pandemic, as well as shifting demographics.

While mining activity has concluded at the source of 90 percent of the world’s pink gems, diamond analyst Paul Zimnisky noted that Rio Tinto is likely still processing ore from Argyle.

“So Argyle diamonds will probably still be ‘produced’ this year,” he said. “Also, Rio may have some rough inventory overhang following all of the supply chain disruptions last year. But by the end of this calendar year or early next year, I think most of the primary market Argyle rough goods will be off the market.”

Demand for pink diamonds steadily growing

Colored diamonds, especially pink and red, are among the most valued gems on Earth. Prices can range from US$10,000 per carat for less intensely colored stones up to US$70,000 per carat for vivid hues.

Ahead of the Argyle closure, pink diamond prices were on the rise. According to the Fancy Color Research Foundation FCRF, the value of pink diamonds rose 116 percent between 2010 and 2020. That’s more than any other colored diamond segment, including the extremely rare blue diamonds.

Even 2020’s disruptions and closures didn’t dent the rosy outlook for colored stones.

“The prices of all pink diamonds overall remained without a change in Q4 2020, with fancy and fancy intense categories presenting a slight increase,” a FCRF report states. “Although 2020 was challenging in terms of logistics and travel, contrary to market expectations, fancy color diamond prices proved to be resilient, with minor price decreases across the board.”

With as much as 95 percent of global pink diamond supply now removed, there is some anticipation that prices for the gems will continue to increase, perhaps at a faster rate.

Source: investingnews

Rio Tinto closes Argyle diamond mine after 37 years

Pink diamonds, already rare, are about to get scarcer as Rio Tinto has closed its iconic Argyle diamond mine, the world’s biggest and the main global source of high-quality pink diamonds.

Since opening its doors 37 years ago, the Western Australia mine produced 865 million carats of rough diamonds and became the source of about 90% of the world’s prized rose-to-magenta hued stones.

The Argyle ore body, a single pipe known as AK1, was discovered in October 1979. Alluvial operations began in 1983, open pit mining kicked off in 1985 and the mine became a fully underground operation in 2013.

Today, Rio has mined the very last of these unique diamonds from the site, located within the ancient Matsu Ranges more than 3,000 km north of Perth.

“Fifty years ago there were very few people who believed there were diamonds in Australia even fewer could have foreseen how the Argyle story would unfold,” Rio Tinto’s chief executive of Copper and Diamonds, Arnaud Soirat, said in a statement.

“To arrive at this final chapter has required vision, courage and determination to overcome significant challenges to enter new territory in diamond exploration, mining and marketing,” Soirat added.

The closure of Argyle will remove about 75% of Rio’s diamond output, yet the impact on the miner’s earnings will be negligible. Diamonds bring in only about 2% of its earnings, while iron ore the company’s main commodity accounts for almost 60%.

The operation will now undergo decommissioning and rehabilitation, which is expected to take five years. After that, Rio will monitor the site for a period yet to be defined.

End of an era

Andrew Wilson, general manager of Argyle, said the mine transformed the diamond sector since its opening, supplying gems for both ends of the market.

“A new chapter will now begin as we start the process of respectfully closing the Argyle mine and rehabilitating the land, to be handed back to its traditional custodians,” he said.

Argyle was Australia’s first large-scale diamond operation, pioneering the fly–in fly–out model, and seen as an opportunity for a workforce drawn from across the nation.

Rio Tinto closes Argyle diamond mine after 37 years — Forty years ago, in the Kimberley region of Western Australia, four diamonds in a dry creek bed ultimately led Rio’s geologists to a massive diamond deposit.

It also triggered the creation and adoption of new technology and exploration methods to make the search for diamonds more efficient across the rugged and remote Kimberley landscape.

At its peak, Argyle churned out 40% of the world’s diamond output, which made it the biggest producer by volume.

Pricy gems

Analysts and auctioneers alike expect prices for pink diamonds to go up and, potentially spur exploration.

Pink stones have already been fetching record prices in the past few years and the closure of their main source could see that trend strengthen.

The “Pink Star” went for $71.2 million at Sotheby’s Hong Kong in April 2017, setting a record for diamonds sold in auctions.

In 2018, the 18.96-carat Pink Legacy fetched $50 million at Christie’s auction house, breaking the world record for price paid per carat for a pink diamond at auction.

Christie’s to auction largest, finest pink diamond in its history — The Pink Legacy diamond.

At Sotheby’s Hong Kong 2019 sale, one of the star pieces described as an “exquisite 10.64 carat vivid purplish pink diamond” sold for just under $20 million.

Rio Tinto’s own data show that prices for their Argyle pink diamonds jumped by 500% from 2000 to earlier this year.

Source: mining.com

Rio Tinto Ends Mining at Argyle

Rio Tinto will dig the last diamonds up from the ground at its Argyle deposit in Australia on Tuesday, marking the end of an era in the industry.

The company will continue to sift through ore at the adjacent processing plant until December, and will hold the final rough sale at the end of that month, a company spokesperson said.

Rio Tinto first began operations at Argyle in 1983, with the site since becoming the world’s largest diamond mine by volume, producing more than 825 million carats of rough over its lifetime. The deposit is most famous for its colored diamonds, with more than 90% of the world’s rare pink and red diamonds originating from the mine, according to Rio Tinto.

Those pink diamonds take longer to process than general run-of-mine goods, the company noted. Rio Tinto will continue to sell them into the coming year, and will hold its final Argyle Pink Diamonds Tender in 2021.

Once Rio Tinto completes the final production from Argyle, it will undertake a decommissioning, dismantling and rehabilitation process that will last approximately five years.

Source: Diamonds.net

India’s rich tussle for Argyle pink diamond because mines are not forever

India’s super rich are rushing to grab an Argyle pink diamond before the primary source of rarest pink diamonds in the world for the last four decades, Rio Tinto’s Argyle mine in Australia closes down operations by the end of the year.

Diamond traders said demand for Argyle pink diamonds has shot up by three times among high net worth Indians compared to last year.

“Argyle pink diamond is a true love for diamond connoisseurs across the globe,” said Darshit Hirani, owner of Mumbai-based P Hirani that only deals with coloured diamonds. “In India, there are business families and high net worth individuals from places like Mumbai, Bengaluru and Hyderabad who are aware of the rarity of Argyle pink diamond and they are keen to own one. It is a collector’s item.

Investment-wise it has a lot of value too. Every year, the price of Argyle pink diamond has witnessed a double-digit growth. And once the availability dries up, prices will shoot up further,” he said.

The price of Argyle pink diamond starts at $15,000 a carat and can go up to $1 million depending upon the size and clarity.

Fugitive Indian diamond merchant Nirav Modi was one of the major buyers of Argyle pink diamonds that he had used in his jewellery brand.

For almost 40 years now, the Argyle diamond mine in Kimberley, Western Australia has been producing about 90% of the world’s most coveted pink diamonds.

The mine holds an invitation-only annual Argyle Pink Diamond Tender in which it showcases its best pink, red, and even blue stones from the preceding year.

Its closure is anticipated to disrupt the global diamond market, and the value of coloured diamonds will likely skyrocket as supply falls, traders said.

“Consumers are mostly well aware that this is a good product to purchase. Diamonds continue to enjoy their admiration as an investment,” said Milan Chokshi, who owns Moksh

Jewellery, a diamond jewellery brand that provides its customers information about the dwindling supply pipeline to repose their faith in diamonds. “When mounted in well designed and manufactured jewellery, it not only has investment value, but also artistic and emotional value,” he said.

Not only the Argyle diamonds, natural diamonds will get rarer as days go by as no new mines are coming up, traders said.

Source: economictimes

Rio Tinto unveils rare diamonds as Argyle nears end

Rio Tinto has showcased its rare pink, red, violet and blue diamonds from the Argyle mine in Western Australia virtually to a group of collectors, connoisseurs and luxury jewellery houses.

The 2020 Argyle Pink Diamonds Tender is a collection of the rarest diamonds from this year’s production of precious gems produced at the east Kimberley, Western Australia site.

The collection was headlined by Lot Number 1, which is the largest Fancy Vivid round brilliant diamond ever offered at the tender.

Weighing in at 2.24 carats, the Fancy Vivid Purplish Pink diamond, also known as Argyle Eternity, is the highlight of the historic collection which comprises of 62 diamonds weighing 57.23 carats.

The Argyle Pink Diamonds Tender also features six hero diamonds, recognised for their unique beauty and named so to ensure there is a permanent record of their place in history as some of the world’s most important diamonds.

In addition to Argyle Eternity, these hero diamonds include the 2.45 carat square Fancy Intense Purple-Pink Argyle Ethereal, the 1.84 carat pear shaped Fancy Vivid Purplish Pink Argyle Sakura, the 0.43 carat Argyle Emrys in greyish blue, the 0.33 carat grey-violet Argyle Skylar and 0.70 carat violet-grey Argyle Infinite.

In addition to these gems the collection also features 12 lots of carefully curated never to be repeated sets of miniature rare Argyle punk, red, blue and violet diamonds weighing in at a total of 13.90 carats.

Rio Tinto general manager of sales and marketing for diamonds Patrick Coppens noted the Argyle mine’s history of producing rare pink gems.

“The Argyle pink diamond story has continued to enthral throughout the years following the remarkable discovery of the Argyle mine in 1979,” Coppens said.

“The 2020 Argyle Pink Diamonds Tender is a collection of rare earthly treasures, intricate works of art and with a potency of colour that will be keenly sought after by collectors and connoisseurs from around the world.”

Rio Tinto chief executive of copper and diamonds Arnaud Soirat added that the Argyle mine is the world’s first and only ongoing source of rare pink, red and violet diamonds.

“We have seen and continue to see strong demand for these highly coveted diamonds, which together with extremely limited global supply, supports the significant value appreciation for Argyle pink diamonds,” Soirat said.

Due to COVID-19 restrictions the collection was previewed virtually for exclusive invitees before viewings begin later this year at the Argyle mine, in Perth and in Singapore in Antwerp.

Bids for the precious stones close on December 2 2020.

Source: australianmining

Kunming partners with Rio Tinto for Argyle diamonds

The world’s second-largest miner, Rio Tinto (ASX, LON, NYSE: RIO), announced that Hong Kong-based coloured diamond specialist Kunming Diamonds is now one of the company’s 13 authorized partners for Argyle pink diamonds.

In a press release, Rio said this means Kunming will be entrusted with the care and custody of the gems.

Established in 1987, Kunming is a global, multi-generational company that has built its business into one of Asia’s leading coloured diamond specialists. In 2019, the company was successful in acquiring the entire Argyle Pink Everlasting Collection, a one-off exclusive selection of certified Argyle pink and red diamonds.

“This is a wonderful honour and showcases our commitment to bringing the world’s rarest diamonds to our global partners and client base,” Harsh Maheshwari, director of Kunming, said in the brief.

Source: mining.com

Pink Prices set to Rise with Closure of Argyle

The price of super-rare pink diamonds is to set to rocket with the forthcoming closure of the Argyle mine in Western Australia, which has been responsible for 90 per cent of world supplies.

Owners Rio Tinto plan to cease production by the end of 2020, when economically-viable reserves will run out.
The value of pink diamonds sold at its annual tenders has been appreciating by an average of 10 per annually over the last couple of decades, outperforming all major equity markets. They are a magnet for collectors and investors.
That growth in value is likely to accelerate when Argyle closes, after 37 years in which it became known as the world’s largest supplier of natural colored diamonds – including white, champagne, cognac, blue and violet – as well and the rare and highly-coveted Argyle pinks and reds.
Last year Hong Kong-based Kunming Diamonds bought the Argyle Pink Everlastings Collection comprising smaller Argyle pink and red diamonds totaling 211 carats.

The company’s director Harsh Maheshwari told the South China Morning Post newspaper last week that the price of Argyle Pinks had been insulated even from COVID-19 because of their rarity and the closure of the mine.
Russian miner Alrosa aims to fill some of the gap left in the market but won’t match Argyle’s production.

Source: IDEX

Rare Argyle diamonds attract bidding bonanza as closure nears

Rio Tinto has showcased a collection of 64 rare pink and red diamonds from the Argyle mine in Western Australia in the 35th tender from the soon-to-be-closed mine.

The company reported “intense global demand” for the rare diamonds, with double digit growth in the number of bids during the tender.

The most valuable diamond in the collection, Argyle Enigma, was won by Melbourne-based dealer and Argyle Pink Diamonds partner Blue Star & Kiven Diamonds. It also secured Argyle Verity.

Bids and total values are kept confidential.

“No other diamonds on earth match the rarity and provenance of Argyle pink diamonds,” Blue Star & Kiven Diamonds director Ron Kiven said.

“To have acquired two of the last Argyle pink diamonds to ever be unearthed, and one of the few Fancy Red Argyle diamonds in existence is the ultimate privilege.”

The 2019 Argyle Pink Diamonds tender was highly sought after, with a set of results that underscore the ongoing value appreciation of the gems in the history of rare coloured diamonds, according to Rio Tinto copper and diamonds vice president of sales and marketing Alan Chirgwin.

This year’s tender is the first time to be accompanied by smaller Argyle pink and red diamonds known as the Argyle Pink Everlastings collection.

It comprises 64 lots of carefully curated diamonds, weighing 211 carats. The collection was entirely sold to Hong Kong fancy coloured diamond specialist, Kunming Diamonds.

“This is a rare opportunity to acquire a once in a lifetime collection of pink and red Argyle diamonds,” Kunming director Harsh Maheshwari said.

“With the imminent closure of the Argyle mine, a collection such as this deserves to be showcased to the world.”

The value of Argyle pink diamonds sold at tender has appreciated more than 500 per cent over the past 19 years, outperforming all major equity markets.

Almost the entire world supply of rare pink, red and violet diamonds come from Rio Tinto’s Argyle diamond mine in the East Kimberley region of Western Australia, which will close at the end of next year.

Source: australianmining.com.au

Rio Tinto Sees Strong Bidding for Argyle Pinks

Rio Tinto saw a double-digit increase in the number of bids at its 2019 Argyle Pink Diamond Tender, the company reported Wednesday.

The miner offered two collections at the tender, with one buyer acquiring all 64 lots of the Everlasting Collection, comprising 211 carats of smaller diamonds. The center piece Hero stones included six pink and red diamonds weighing 1.07 carats to 2.01 carats.

Australia-based Blue Star & Kiven Diamonds, a subsidiary of Aurostar Group, bought the Argyle Enigma, the most valuable diamond in the sale, Rio Tinto said Wednesday. The company also won the Argyle Verity.

“To have acquired two of the last Argyle pink diamonds to ever be unearthed, and one of the few fancy-red Argyle diamonds in existence, is the ultimate privilege,” noted Blue Star & Kiven Diamonds director Ron Kiven.

Meanwhile, Hong Kong-based fancy-colored-diamond dealer Kunming Diamonds purchased the entire Argyle Pink Everlasting collection. Rio Tinto did not disclose the sales price for any of the lots.

“With the imminent closure of the Argyle mine, a collection such as this deserves to be showcased to the world and we look forward to announcing our plans at a later date,” said Harsh Maheshwari, director of Kunming Diamonds.

The Argyle mine in Western Australia is nearing the end of its operational life, with Rio Tinto expecting to produce diamonds there until the end of 2020.

Source: Diamonds.net