Dominion Diamond breathes more life into Diavik mine

The abrupt departure of its chief executive, the appointment of the son of one of Russian president Vladimir Putin's closest aides to replace him and a raid this month by the security services. That would be enough to worry even the boldest investor. Yet the corporate success story of Alrosa does not look like it is fading. Only last month, the world's biggest diamond producer by volume reported a fourfold increase in profits and a 41 per cent surge in year-on-year revenue. The strong results of the Russian state-run company have been helped by last year's global recovery in diamond prices following a decline in 2015 as the group generated net cash flow to pay liabilities and dividends. Alrosa said it would pay 75 per cent of profit for 2016 in dividends, a rarity for a Russian state company, many of whom avoid paying the government-mandated figure of 50 per cent. "We see continuously growing diamond jewellery demand in the US, and gradually recovering demand in China and in commodities driven economies," says Dmitry Glushakov, an analyst at VTB Capital.

Diamcor Mining Inc. is pleased to announce that further to the installation of significant additional operational items and expansions completed as announced on January 18, 2017, the testing, commissioning and calibration of these new facilities at the Company's Krone-Endora at Venetia Project (the "Project") continues to progress in a positive manner. The Company expects the finalization of these efforts to be completed by April 30, 2017. These efforts, initially targeted for completion in the prior fiscal quarter ended March 31st, were delayed due to operational and product delivery issues. However, with the testing, commissioning, and calibration work now substantially completed, the facilities have very recently begun demonstrating an ability to achieve the desired goals of: increased processing volumes; the crushing and treatment of material up to 45mm in size; the processing of material through a dedicated ultra-coarse large diamond recovery circuit; and, an increase in the overall capacity of the Project's final recovery and sorting facilities.

The diamond industry's most famous chart is the hungry crocodile, the ancient reptile's jaws wide open, reflecting both a predicted shortage of gems and the inevitable price rises that will come with it. Not only has this chart, which has been an industry staple for more than a decade and promoted by big miners like BHP Billiton Ltd., Rio Tinto Group and De Beers, never materialized, it oversimplifies the fact that the industry's 15,000 different categories of diamonds are performing in very different ways. That divergent trend has accelerated in the past year. Last month, a mine producing lower quality stones was shut due to a dip in prices, while top producer De Beers has been forced to offer unprecedented concessions to its customers. Both events show the chart is less relevant today than ever before. "Miners have all used the open crocodile graph to justify their business case," said Anish Aggarwal, a partner at Gemdax in Antwerp. "A greater degree of granularity is needed now to look at what the demand and supply looks like for each particular project."

Gem Diamonds said it unearthed a 114-carat diamond at its Lesotho mine in southern Africa, helping to ease concerns about a dearth of large finds. The stone is a D color Type II diamond of exceptional quality, Gem Diamonds said in a statement Friday. It


was the second Lesotho diamond discovery bigger than 100 carats announced this week, after a rival miner said Wednesday it had unearthed its first stone of that size. The company's Letseng mine is renowned for the size and quality of its stones with its diamonds selling at an average price of almost $2,000 a carat, the highest in the industry. In comparison the global average is about $120 a carat. Still, the company has suffered recently from a lack of big finds, with the miner discovering just five stones bigger than 100 carats last year, less than half as many as it found in 2015. "Given the paucity of large, high-value recoveries in recent months, we believe this recovery can precede a return to form for Gem," Kieron Hodgson, an analyst at Panmure Gordon & Co. in London, said in a note Friday.

Indian diamantaires may get reduced supply of rough diamonds from the world's largest diamond mining company, De Beers. The company, according to the US-based Rapaport Group, has reduced the supply of rough diamonds by over 20 per cent under the intention to offer (ITO) filed by its clients, majority of who are Gujarati diamantaires from India, Antwerp and Dubai. The reason being that De Beers had signed an agreement with Namibian Government last year, committing to allocate 15 per cent of its Namibia production to state-owned company Namdia, to support diamond manufacturing. The De Beers has been supplying rough diamonds on contract basis to its clients through ITO-an indication from the clients on how much rough diamonds will be required for the coming year. The company has about 80 core clients at its international sights, which take place 10 times a year in Botswana. As a part of its beneficiation programme, it also supplies roughs in separate sights to 11 local sightholders in Namibia, 20 in Botswana and seven in South Africa.

Cecilia Gardner stepped down last month after 18 years as president and CEO of the Jewelers Vigilance Committee. (She also served, for over a decade, as general counsel for the World Diamond Council, which represents the industry in front of the Kimberley Process.) She will now offer legal and consulting services for the industry. In a candid talk at the American Gem Society Conclave in Los Angeles, Gardner addresses her future plans, her views on women in the industry, and, of course, the Kimberley Process.JCK

Early in March, more than 4,000 people gathered at the "Millennial 20/20 Summit" in New York to discuss the power of the millennial generation and how they will affect the future of retail. Chinese millennials, numbering more than 400 million, are a force to be reckoned with. While many have recognized them as ultra-connected consumers, few have realized that this has been caused by their place in history as the only-child generation. This alone sets them apart from other millennials in a most fundamental way. Starting from 1979, China implemented the "One-Child Policy" in an effort to control its population growth. The policy lasted for almost 40 years and was only ended recently. During this period, each family in urban China was allowed to have only one child. Chinese millennials, aged 19 to 35, were all born during the "One-Child Policy" period. These "little emperors" and "little empresses," as they are often known because of their singular importance within a family unit, were at the center of their universe when they grew up. They are privileged, entitled and enjoy a good life

China's Diamond Market Returns to the Spotlight 

with Record-Breaking 'Pink Star' Sale to Chow Tai Fook

Hong Kong jeweler Chow Tai Fook now lays claim to a rare diamond that's getting global attention after its US$71.2 million sale broke records this week at a Sotheby's Magnificent Jewels and Jadeite auction. The 59.6 carat 'Pink Star' diamond is now the most expensive sale at auction for a diamond or jewel in the world, more than doubling the bid for the 'Unique Pink' diamond at a Sotheby's auction in Geneva last year. The auction was a major achievement for the auction house in Hong Kong as the diamond was also the "most valuable item ever sold in Asia," Sotheby's CEO Tad Smith said in a press statement. Its success as Art Basel winds down suggests contemporary art is not the only market making major strides in China right now-jewelry is seeing a potential growing market as well.



Despite a lag in the number of Chinese mainland tourists to Hong Kong and Xi Jinping's anti-graft campaign, there is hope among industry experts that Chinese millennials will give the struggling diamond industry the boost it needs. A December 2016 Bain and Company report said this generation brought jewelry makers " a compelling opportunity," and Chow Tai Fook has been quick in recent years to take advantage of it. The company bought Hearts on Fire Co. in 2014 and has opened a new accessible luxury brand called Monologue in the mainland to give its younger shoppers a greater selection of pieces they'll like at lower price points.