Diamond diggers in South Africa’s deserted mines break the law — and risk their lives

Jefferson Ncube, an illegal diamond miner from Zimbabwe, works on his latest tunnel at an abandoned De Beers mine near Kleinzee, South Africa.
Jefferson Ncube, an illegal diamond miner from Zimbabwe, works on his latest tunnel at an abandoned De Beers mine near Kleinzee, South Africa.

Bracing against the vibrations of the jackhammer, illicit diamond miner Jefferson Ncube bores steadily into the rock face before him, sending chunks of dry stone clattering to the ground and filling the air with a cloud of pale gray dust. He’s 30 feet below the surface of the desert in the Namaqualand region of South Africa in a tunnel barely tall enough to crawl through.

“I don’t enjoy this at all, but I need the money,” says Ncube, who holds a degree in agricultural science from the University of Pretoria but says he has been unable to find work elsewhere. “I have a family to support, a wife and a 1-year-old child.”

The Nuttabooi mine, near the coastal town of Kleinzee, was once mined by the diamond giant, De Beers, the largest of dozens of industrial mining operators who, for the best part of a century, formed the backbone of the region’s economy.

A diamond miner hauls up a bucket of gravel at an illegal mining site in South Africa's Northern Cape Province.
A diamond miner hauls up a bucket of gravel at an illegal mining site in South Africa’s Northern Cape Province.

But over the past 20 years, rising operational costs and a dwindling supply of diamonds have made large-scale industrial mining increasingly unviable. The sector’s steady decline has left a legacy of chronic unemployment in Namaqualand but has also created opportunities for a growing number of desperate young men and women willing to tolerate hardships and dangers as they eke out a living in abandoned mines.

Known locally as “zama-zamas” — loosely, “ones who try their luck” in isiZulu — unlicensed miners like Ncube are considered illegal by the government. Yet here on South Africa’s wild and diamond-rich Atlantic coast, residents say the number of zama-zamas has burgeoned in recent years, fueled by the lack of jobs, the economic impact of the COVID-19 pandemic and the rising cost of living, as well as by political and economic crises in neighboring countries.

An ilegal diamond miner breaks up rocks at the Nuttabooi mine near Kleinzee, South Africa.

Earlier this year, South Africa’s minister of Mineral Resources and Energy, Gwede Mantashe, described illegal mining as a “plague” amid reports of rampant corruption, extortion and violence linked to zama-zama activity across the country, not only in relation to diamonds but also coal, and other minerals such as gold and chromite. Once confined largely to the country’s estimated 6,100 abandoned or ownerless mines, officials say illegal mining is increasingly spilling over into operational mines too.

Ncube is part of a 12-man team, all of them migrants from Zimbabwe, where hyperinflation and unemployment have made it all but impossible to build a stable life for their families. Out in the desert, living conditions are bleak and working conditions even worse, but with some basic tools and a little knowledge of geology, they manage to make ends meet. The men, almost all of whom have arrived in the past two years, share the work and split whatever profits they make.

Members of an illegal diamond mining collective look down a mineshaft at the Nuttabooi mine.

“We dig down until we hit the bedrock, then we go sideways through this belt,” says Ncube, pointing at a band of rock and gravel on the side wall of the tunnel. “This is where we find the diamonds. In the past, they used hammers and chisels. But if you use a jackhammer, you can take out more rock and then there are more diamonds for you.”

Danger in the tunnels

A zama-zama uses a jackhammer to break up rock in an abandoned De Beers mine.

The miners have little in the way of safety equipment, and their tunnels are prone to collapsing. A little more than half a mile from here, at the neighboring Bontekoe mine, a simple granite plaque in the desert commemorates the miners who lost their lives in a particularly deadly collapse in 2012. Smaller accidents occur frequently and often go unreported. Community leaders say that at least six people have died at Nuttabooi alone in the past few months.

To try to stay safe, Ncube and his colleagues make a point of leaving “pillars” at 6-foot intervals as they tunnel through the ground. But it’s an imperfect system, made harder by the fact that tunnels dug by different groups of miners often collide.

An illegal diamond miner looks out from the top of a De Beers mine that has since been taken over by zama-zamas.

“If the hole is ‘paying,’ people get greedy and they eat away at the pillars until the whole thing is just hanging,” says Ncube. “That’s how some guys died just two holes away from here. If you get greedy you’ll die down here, and then your family will suffer even more.”

After handing over to a colleague, Ncube climbs carefully back up the vertical mine shaft and hauls himself over the edge. At the surface, in a stark, lunar landscape of craters and piles of rubble, zama-zamas cluster together around their holes, sifting through gravel and chatting over the low hum of diesel generators. A few hundred yards away, the old De Beers mine lies abandoned, a massive scar on the face of the desert, hemmed in by towering mine dumps.

“De Beers has taken all the diamonds out of Namaqualand and now we’re back in poverty,” says Andrew Cloete, a longtime illicit miner who lives in a small tent of black and red plastic sheeting in the ever-expanding squatter camp below the Nuttabooi mine. “The companies left us like they found us — with nothing. But if we just sit there thinking about it, our kids will die. So we, the diggers, come in here and take the scraps.”

Andrew Cloete, a diamond miner and activist for mining rights, photographed in his shack in a squatter camp at the Nuttabooi mine in Namaqualand, South Africa. The government considers the activity at Nuttabooi illegal because the miners do not possess permits.

The plight of the zama-zamas

There is a palpable sense of anger, particularly among the miners who grew up in Namaqualand, over how little of the region’s diamond wealth has stayed in the local area. Over several decades, vast quantities of diamonds have been exported overseas, yet most of the area’s roads are still unpaved, service provision is haphazard at best and poverty and alcoholism are endemic. Unemployment in the province stands at over 46%.

“Africa’s f***ed up. We don’t have jobs, all we have is minerals — but they’re being looted by the West,” said one miner, an unemployed mechanical engineer who didn’t want to be named, citing concerns that he may be targeted by the authorities. “This is our Africa. This is our land. These are our minerals.”

Zama-zamas have little bargaining power and are forced to sell their finds to black-market buyers for a fraction of their true value.

Outside Cloete’s tent, men wander through a small city of plastic lean-tos that has sprung up in the desert over the past two years. The camp has enveloped a handful of derelict buildings left behind by the mining companies, where zama-zamas now sleep side by side on filthy mattresses on the floor. The camp, home to around 1,500 people, has no electricity, running water, clinics or sanitation but a surplus of bars and taverns that do a steady round-the-clock trade.

“Nobody would live in conditions like this if there wasn’t a need,” says Cloete, gesturing toward the scene outside. “We’re here because of poverty, hunger and joblessness.”

They’re not getting rich off their diamonds

Diamond miners at an illegal dig site in Namaqualand, South Africa.

After lighting a cigarette, Cloete reaches for a small glass jar and takes out a plastic packet from inside. Carefully, he empties its contents into his palm. About a dozen small, rough diamonds tumble out. On international markets they might fetch a substantial sum, he says, but due to the illegal nature of their work, the zama-zamas have little bargaining power and are forced to sell their finds to black-market buyers for a fraction of their true value.

“They buy diamonds like they’re buying sweets,” complained one zama-zama. “You get people buying diamonds for 100 Rand [about $5.50].”

Cloete, who founded an informal group of mineral rights activists known as the “Mining Fighters,” has spent years petitioning the South African government to find a productive way to formalize zama-zama mining, a move that he says would lead to safer working conditions and a fairer marketplace for local diamonds, as well as bringing in considerable revenue for the government. Similar systems are in place in many other African countries, where so-called artisanal mining, carried out by individuals or small groups using traditional methods and basic equipment, is now a major employer and revenue generator.

A swimming pool lies empty in the town of Kleinzee in the Namaqualand region of South Africa.

The town was once the property of the De Beers diamond company. In its heyday, it was a thriving settlement of 4,000 people with about 30 recreational clubs. After closing down its mines in the region, De Beers sold off the town, which is now largely empty.

But Cloete says he has yet to receive a response. “They treat us like we’re criminals,” he says.

Many in the formal diamond sector would also like to see the legalization and regulation of informal mining, which they say hampers their legal operations and fuels a parallel black market in illegal diamonds.

“At the end of the day, it’s a situation that’s totally unbearable for us,” said Gert Van Niekerk, chairman of the South African Diamond Producers Organisation, an industry body representing legal diamond miners. “This is not the Wild West.”

Kim Cupito

Kim Cupito, who lives with her husband in a derelict building left behind by De Beers, lost her job during the pandemic. “We need to survive, and this is God’s ground. It’s for everybody,” she says.

In Kleinzee, a faded mining town once owned by De Beers, where most homes now lie empty, residents say the influx of illegal miners from around South Africa and neighboring countries has led to a rise in crime.

The uncertain future faced by zama-zamas

“Zama-zamas aren’t welcome here,” said one Kleinzee restaurateur. “They have knives, they have guns, they’re gangsters. They can come and buy things here, but afterward they must leave. We don’t want them here.”

Illegal diamond miners try to get phone reception at a mining site in Namaqualand, South Africa.

In a policy document released in March, South Africa’s Department of Mineral Resources and Energy announced its intention to create a new police unit dedicated to combating illegal mining. It also laid out plans to make it easier for artisanal and small-scale miners to legally acquire mining rights by streamlining the expensive and time-consuming process of applying for a permit.

Police raids are frequent. In one major operation in July, a combined force of police and other law enforcement bodies backed by two helicopters and a spotter plane raided the Nuttabooi site, arresting over 100 people and confiscating 130 generators and 121 jackhammers, along with other equipment. But within days, mining activity had resumed.

But creating new legislation to support the policies could take time. And critics say it’s unrealistic to hope that many zama-zamas will voluntarily cease their activities, undergo training, comply with regulations and start paying taxes and royalties to the government, especially given that many are in the country illegally and would not be eligible for mining permits.

In the meantime, Namaqualand’s zama-zamas don’t intend to wait around.

“There’s nothing for us out there,” said Kim Cupito, a former fruit trader who lost her job during the pandemic and now lives with her husband in a derelict De Beers building with gravel piled up in the hallways and gaping holes in the roof. “We need to survive, and this is God’s ground. It’s for everybody.”

Picures by: Tommy Trenchard for NPR

Source: npr.org

$35M Pink Diamond Pulled from Christie’s Sale

The 13.15 carat pink diamond

A 13.15 carat pink diamond will no longer be available at the upcoming Christie’s Magnificent Jewels auction in New York.

The emerald-cut, fancy vivid pink, VVS1 clarity stone, which carried a price estimate of $25 million to $35 million, was poised to be the December 6 sale’s showcase piece. Christie’s described the diamond as one of the largest of its kind to appear at auction.

“Christie’s confirms that the fancy vivid pink diamond ring has been withdrawn from sale in New York on December 6,” a spokesperson said. The company declined to comment further or provide a reason.

The item was scheduled to appear on display in Hong Kong on Friday. The removal was “very surprising,” said one colored diamond dealer in the municipality.

Colored diamonds have had a mixed season at auction. On November 8, the 18.18-carat Fortune Pink fetched CHF 28.4 million ($28.9 million) at Christie’s Geneva, toward the lower end of its presale estimate. The following day, a 5.53 carat diamond from the De Beers Exceptional Blue Collection failed to find a buyer at a Sotheby’s auction in the Swiss city.

With the 13.15 carat pink off the list, the top remaining item at the Magnificent Jewels sale is a pear modified brilliant cut, 31.62 carat, fancy blue diamond pendant with a price estimate of $10 million to $15 million.

Source: Diamonds.net

Lucapa Diamond Company sells Lulo diamonds for A$30.1m

Lucapa Diamond Company

Diamond miner Lucapa Diamond Company has sold seven diamonds from its Lulo mine in Angola for $30.1 million, equating to over $39,000 per carat.

The company and its partners, Endiama E.P. and Rosas & Petalas, placed the “special sized” diamonds on international tender earlier this month. Together, the diamonds weighed a combined 767 carats.

The sold diamonds include a 170-carat fancy-coloured diamond dubbed the ‘Lulo Rose’ alongside three white Type IIa diamonds of over 100 carats and three other special-sized white Type IIa stones.

In late September, Lucapa announced it had recovered its 30th diamond of over 100 carats from Lulo, which has been in commercial production since 2015.

The company kicked off commercial production from its Mothae mine in Lesotho in 2019.

Meanwhile, Lucapa said it was continuing to explore for potential primary-source kimberlites or lamproites with its partners across the Lulo concession in Angola, the Brooking project in Australia, and the Orapa Area F project in Botswana.

Source: The market herald

How to Take Care Of Your Engagement Ring

Take Care Of Your Engagement Ring


Diamonds, Gemstones and precious metals can all be damaged. 

Caring for your engagement ring or Jewellery will maintain the quality and beauty. 

Rule of thumb is gently cleaning your ring and jewellery every so often with soapy water and light brushing. An Old tooth brush will help get into the hard to reach places. 

Visit your Jeweller at least once a year for a ring health check. This should include a check of the strength of the setting and the stability of the stone. 

When storing your ring, like during overseas travel,  ensure the jewellery is in a secure place. 

It is recommend insuring your ring for its full replacement value.  If you bought at a reduced price, it may not be possible to replace at the same value in the future. 

An engagement ring or heirloom may be a prized possession, with irreplaceable sentimental value. Be Certin it is protected correctly.

When visiting your Jeweller ask for the jewelry to be cleaned.

This is usually done while you wait in an ultra sound cleaner. 

Avoid using chemicals or bleach when cleaning your jewelry. Some could damage gems and the finish of the item.

Never use abrasives on precious metals. The finish and integrity could be compromised and require a Jeweller to repair or polish. 

All precious metals will lose the high polished shine over time. It is easy for your Jeweller to bring back the shine. Have your Jeweller check the item annually and advise on maintenance. 

It is realistic to re-polish Platinum and Gold Jewellery every couple of years to maintain its smooth surface and shine.

White metal may be rhodium plated, this will wear in time and needs to be redone every few years to restore its colour and luster. 

This process is inexpensive and will bring back the original look.

Store your jewellery safely.

If you’re not wearing your ring be sure you have a safe or a good lockup place for your ring or jewellery .

Remove your ring during hands-on activities.

Jewellery is easily damaged so avoid wearing the item while doing -heavy handed activities like moving furniture, gardening, lifting weights. 

Depending on the type of gem, You may also want to remove your ring when you swim in chemically treated water.

Don’t remove your ring in public.

While it may be tempting to remove your ring while washing your hands, Don’t, it could slide down the drain or you might forget it altogether.

Insuring Your Engagement Ring

Have your ring valued, and have the value checked if the currency rate changes.

Make sure you insure it for its full like for like replacement.

Source: Certin

Pink diamond sells for $49.9m

The 11.15-carat Williamson Pink Star diamond 
The 11.15-carat Williamson Pink Star diamond 

An 11.15 carat pink diamond has been sold for $49.9m in Hong Kong, setting a world record for the highest price per carat for a diamond sold at auction.

Auctioned on Friday by Sotheby’s Hong Kong, the Williamson Pink Star diamond was originally estimated at $21m.

The gem draws its name from two legendary pink diamonds.

The first is the 23.60 carat Williamson diamond which was presented to the late British Queen Elizabeth II as a wedding gift in 1947.

The second is the 59.60 carat Pink Star diamond that sold for a record $71.2m at auction in 2017.

The Williamson Pink Star is the second largest pink diamond to appear at auction.

Pink diamonds are among the rarest and most valuable of the coloured diamonds.

151 ct Yellow diamond recovered at Canada’s Arctic Circle

oronto-listed Mountain Province Diamonds will next week put on sale an “exceptional” coloured rough diamond, which it recovered from the Gahcho Kué mine, in Canada’s Northwest Territories.

The diamond, a 151.60 t octahedron of exceptional clarity, will be offered for sale alongside a selection of more than 90 individual special rough diamonds recovered from the company’s Canadian diamond mine.

The upcoming sale represents the biggest offering of +10.8 ct gem quality diamonds offered by the company to date.

“This important diamond represents a clear example of the Gahcho Kué mine’s ability to consistently recover high-quality gems of exceptionally large size. These gems are highly coveted by collectors around the globe not only for their beauty but increasingly, for their Canadian origin,” commented VP for diamond marketing Reid Mackie.

Source: miningweekly

11.15-Carat Internally Flawless Pink Diamond Could Fetch $21 Million

11.5-carat Williamson Pink Star diamond 

The second largest internally flawless fancy vivid pink diamond to ever appear at auction was unveiled Wednesday in London by Sotheby’s. The 11.15-carat Williamson Pink Star will be sold in a single-lot auction in Hong Kong on October 5. Its estimate is $21 million.

The auction house says it has the potential to set a new per carat price record for a fancy vivid pink diamond.

“We do have the confidence that it will find a great collector and have the interest of multiple parties,” Wenhao Yu, chairman of Jewellery and Watches at Sotheby’s Asia, told Forbes on Tuesday. “It has the potential to reach a very strong price.”

He adds, “This diamond truly checks all the boxes. It has the best qualities you can have in a pink diamond.”

The current price per carat auction record for a fancy vivid pink diamond is $2,656,909 for the 18.96-carat Winston Pink Legacy, sold in 2018 by Christie’s Geneva. The largest internally flawless, fancy vivid pink diamond offered at auction is the 59.60-carat CTF Pink Star. It was sold by Sotheby’s Hong Kong in 2017 for $71.2 million, a world record for any gem or jewel sold at auction.

Yu compares the Williamson Pink Star to an exceptional work of art.

“We timed this lot to be offered between Sotheby’s modern and contemporary art auctions. That’s because instead of offering just another important diamond, we view this diamond as a work of art from mother earth and a wonder of nature,” Yu says. “It’s comparable to a Monet or a Picasso and is even more rare.”

Williamson Pink Star is the 2nd largest IF fancy vivid pink diamond to appear at auction
The Williamson Pink Star is the second largest internally flawless fancy vivid pink diamond

The Williamson mine is one of the oldest operating diamond mines in the world, famous for producing what is described as “bubblegum” pink diamonds, according to the auction house. One of the best-known diamonds from the mine is the 23.6-carat Williamson Pink Diamond fashioned into a brooch by Cartier and owned by Queen Elizabeth II.

“We wanted to relate the important provenance of the Williamson mine when naming the diamond,” Yu says. “The unique saturated pink color is one of the important qualities of diamonds from this mine. It is an honor for us that after so many decades another important pink diamond comes from the Williamson mine and we can offer it at auction.”

The cushion-shaped diamond was crafted from a 32.32-carat rough diamond by Diacore, a diamond manufacturer that specializes in crafting rare, exceptional fancy-colored diamonds. The company purchased the gem in late 2021 for $13.8 million. Yu says crafting the diamond is just as important as discovering it, and Diacore is one of the few companies in the world capable of cutting and polishing such an important gem.

The Williamson Pink Star is mounted in an 18k gold ring flanked by diamonds
The Williamson Pink Star is mounted in an 18k gold ring flanked by trapeze

“Not every rough can yield a diamond of this high quality so we should also give credit to Diacore,” he says. “They really made cutting and polishing into an art. They are very skilled and experienced with the best technology and a lot of courage. It’s rare to have a vivid pink color. It’s rarer when it’s over 10 carats and even more rare if it’s internally flawless. It’s luck to find this kind of diamond that was formed underground for millions of years, and it takes a great amount of art and creativity to fashion it into a gorgeous stone with so many exceptional qualities.”

Pink diamonds are among the rarest colors to occur naturally in diamonds. Of all the diamonds submitted to the Gemological Institute of America (which analyzes and grades diamonds), fewer than 3% are classified as colored diamonds, and fewer than 5% of those are considered predominantly pink.

The Argyle Mine in Australia, before it was retired in 2020 after exhausting its supply of gem-quality diamonds, produced more than 90% of the world’s pink diamonds. The absence of pink diamonds from this mine makes important pink diamonds like the one being offered even more rare, Yu says.

“Pink diamonds are still growing in demand in the market, and this now makes the Williamson Pink Star even more sought after,” he says.

The diamond is being presented in an 18k gold ring flanked by trapeze-cut diamonds and embellished with brilliant-cut diamonds.

London is the first stop where the diamond will be viewed by the public. It will then travel to Dubai, Singapore and Taipei before the final viewing and sale in Hong Kong.

Source: Anthony DeMarco forbes.com

World’s Top 5 Diamond-Producing Countries

Russian diamonds
ALROSA Russian diamonds

Diamond is a naturally occurring rare mineral that is composed of pure elemental carbon. Due to the extremely rigid arrangement of the carbon atoms in a crystal structure, diamonds possess the maximum hardness and thermal productivity than any natural material. Diamonds are also in high demand as gemstones and as luxurious commodities. Despite having a reputation for being used in jewelry like rings and necklaces, 80% of mined diamonds are used for research and industrial purposes because of their toughness and shine.

The hardest substance known to man, diamonds, are frequently used to drill, grind, or cut other difficult materials. Initially, its reserves were only discovered in Africa and provided to the rest of the globe, but today, exploration and production of diamonds have also begun on other continents. Currently, Russia produces 30% of the world’s diamonds, and approximately 39.12 million carats of diamonds were produced in Russia in 2021, making it by far the greatest diamond-mining nation in the world. With a production of 22.9 and 17.6 million carats of diamonds, respectively, Botswana and Canada are placed in second and third place, followed by the Democratic Republic of the Congo and South Africa.

1. Russia (39.12 Million Carats)

Kimberlite pipe Mir. indigenous diamond deposits in Yakutia, Northern Russia
Kimberlite pipe Mir. indigenous diamond deposits in Yakutia, Northern Russia. 

Russia presently leads the world in diamond output after it began mining in 1947. Regarding volume, it is also the top exporter of rough diamonds worldwide. ALROSA is Russia’s largest diamond miner, maintaining a virtual monopoly over the sector and producing over 90% of the nation’s annual output. Russia houses some of the world’s greatest mines and diamond reserves (some of which have not yet been explored), including Udachny, Grib, and Aikhal. It was revealed in 2014 that Alrosa intends to expand the Udachny mine into a 5 million carat per year project, making it the most significant diamond mine in both Russia and the entire globe. Alrosa first used Udachny in 1971, and during the following 43 years, it has helped the company make over $80 billion. Alrosa should be able to keep its position as the world’s biggest diamond producer by volume for the foreseeable future due to Udachny’s figures.

2. Botswana (22.88 Million Carats)

Workers walking in top of the tailings of kimberlite at a diamond mine in Botswana
Workers walking in top of the tailings of kimberlite at a diamond mine in Botswana. 

A significant diamond mine was found in 1966, the year Botswana declared its independence from Britain, in a rural region called Orapa, about 250 miles from the nation’s capital of Gaborone. De Beers, the firm that discovered the mine, was and still is the world’s largest supplier of “rough stones.” The two most significant of the seven mines in the country are Orapa and Jwaneng. Despite ranking second in terms of volume, Botswana tops the list of the world’s top producers of diamonds. Botswana, which was one of the world’s 25 poorest nations, has achieved upper-middle income status due to the revenue from diamonds. The nation is currently vying for a more significant position in the sector as the No. 1 player Russia faces condemnation from around the world for its invasion of Ukraine.

3. Canada (17.62 Million Carats)

Aerial view of Ekati Diamond Mine in Northwest Territories, Canada
Aerial view of Ekati Diamond Mine in Northwest Territories, Canada. Image Credit: Jason Pineau via Wikimedia Commons

The Northwest Territories, which were once used as hunting grounds, are now used mainly for large-scale resource extraction, including diamond mining. Diamonds weren’t found by non-natives until 1991, specifically by two geologists named Chuck Fipke and Stewart Blusson. The first diamond mine in the Northwest Territories, known as Ekati, opened in 1998 because of this finding. The Arctic Canadian Diamond Company presently oversees the operation of Ekati, which is a responsible steward of the environment and a significant source of high-quality employment and money for the area. Most of Canada’s diamonds are mined in the Northwest Territories, which comprise about 40% of the total geographical area. There are currently four working diamond mines in Canada, three in the NWT – the Ekati, Diavik, and Gahcho Kué mines – and the Renard diamond mine in Quebec.

4. Democratic Republic Of The Congo (14.09 Million Carats)

The Democratic Republic of the Congo is the country that turned South Africa’s diamond industry profitable. Miniere de Bakwange (MIBA), a joint venture between the Belgian business Sibeka and the DRC government, which controls 80% of the company, is the only commercial diamond producer in the DRC. Although ongoing political unrest has caused production to fall recently, the DRC has the capacity to produce more diamonds. Only a tiny area has been examined, and mining has only ever been done on a small basis. Most of the DRC’s output is mined by the informal sector rather than mining companies. De Beers markets about one-third of Sibeka’s production and holds a 20% stake in the company.

5. South Africa (9.72 Million Carats)

Historic Kimberley Diamond mine in Kimberley, South Africa
Historic Kimberley Diamond mine in Kimberley, South Africa. 

Almost all the modern diamond trade originates in South Africa. The earliest diamonds found in South Africa were alluvial diamonds. Diamonds were initially discovered in yellow earth in 1869, and then later below ground in hard rock called blue ground near and in what would become Kimberley in the Northern Cape, the diamond center of the world. Later, the blue rock was given the mining town’s name: kimberlite. One of the country’s biggest diamond deposits is located in the South African province of Gauteng. As the government and miners continue to find significant diamond resources and pipelines, the demand for diamonds in South Africa is anticipated to rise.

One can therefore expect the global diamond industry to keep expanding and displaying a bright future as long as economic prosperity continues to improve and as long as there are still diamond reserves that have not yet been mined.

Source: worldatlas.com

US demand to lift India’s lab-made diamond exports to $8 billion

Lab-grown diamonds
Lab-grown diamonds

India, which cuts or polishes about 90% of the diamonds sold in the world, is ramping up sales of laboratory-made gems as demand from the US surges and they become more accepted in other markets.

Exports of polished lab-grown diamonds may double in the current financial year started April 1 from $1.3 billion in the prior year, Vipul Shah, vice chairman of the Gem & Jewellery Export Promotion Council, said in an interview. “We have a huge potential to grow exports to $7 billion-$8 billion in the next few years on the back of US demand and acceptability in the UK and Australia,” he said.

“It is going to be treated as a fashionable jewelry, which is affordable to the youngsters, and that’s the way the market is going to shift,” Shah said.

Diamonds grown in labs represent a small portion of the market currently — India shipped nearly $24 billion of polished diamonds mined naturally last year. Still, the much cheaper variety has been growing its share as it has the same physical characteristics and chemical makeup as mined stones, with experts needing a machine to distinguish between synthesized and mined gems.

Lab-made diamonds are developed from a carbon seed placed in a microwave chamber and superheated into a glowing plasma ball. The process creates particles that crystallize into diamonds in weeks.

Exports of polished lab-grown diamonds from India jumped about 70% in the April-July period to $622.7 million, while those of cut and polished mined diamonds fell around 3% to $8.2 billion during the same period, GJEPC data showed.

One advantage of the man-made gem is that it has a tracking system that helps monitor the supply chain and maintain consumer confidence in the gems.

“Commercial gem-quality earth-mined diamonds are being replaced completely by lab-grown diamonds,” said Ritesh Shah, director at ALTR, one of the first global lab-grown brands to start business in India. The product’s affordability, low carbon-footprint, size and fine quality offer a big draw for buyers, with the US the front-runner in the shift in consumer behavior, he said.

From a handful of companies growing diamonds in labs in the mid-2000s, there are now about 25 such growers in India, he said. The country contributes about 15% of the global production of lab-grown diamonds, according to the GJEPC.

By Swansy Afonso mining.com

Signet Buys Blue Nile for $360M

A Blue Nile showroom in Oregon

Signet Jewelers has signed a deal to acquire online retailer Blue Nile for $360 million in cash.

The purchase will boost Signet’s bridal, “accessible luxury” and digital businesses, while expanding the group’s consumer base, the US retail chain said Tuesday. The company expects to complete the transaction in the third fiscal quarter, which runs until late October. Either side can pull out if the deal hasn’t closed by November 3, 2022.

“Blue Nile brings an attractive customer demographic that is younger, more affluent, and ethnically diverse, which will broaden our customer-acquisition funnel,” Signet added.

The announcement comes around two months after Blue Nile revealed plans for a stock-market flotation via a merger with Mudrick Capital Acquisition Corporation II, a special-purpose acquisition company (SPAC). The proposed deal valued Blue Nile at $873 million. Mudrick was not immediately available for comment on how that transaction progressed. The current owners are Bain Capital Private Equity and Bow Street, which acquired the e-commerce jeweler for around $500 million in 2017.

Blue Nile’s sales exceeded $500 million in 2021, according to Signet, which has stated its intention to reach total annual revenues of $9 billion in the coming years. Last October, it agreed to acquire Diamonds Direct USA for $490 million; in 2017, it bought diamond retail website James Allen for $328 million.

“By joining Signet, we will extend our premium brand and fine-jewelry offering to millions of new customers while bringing new capabilities to our leading e-commerce business that will drive additional growth opportunities for Blue Nile,” said Blue Nile CEO Sean Kell.

Meanwhile, Signet has reduced its sales guidance for the second quarter, which ended in late July, estimating revenue of $1.75 billion compared with an earlier forecast of $1.79 billion to $1.82 billion. Management cited “heightened pressure on consumers’ discretionary spending and increased macroeconomic headwinds.”

“We saw sales soften in July as our customers have been increasingly impacted by rapid inflation, so we’re revising guidance to align with these trends,” said Signet CEO Gina Drosos. The new outlook for the quarter still translates to a sales increase of around 25% compared with the equivalent period of 2019, before the Covid-19 pandemic, the executive noted.

Source: Diamonds.net