De Beers wraps up $1bn rights issue

The diamond producer says it has concluded a refinancing of its debt facilities after being battered by the downturn

Source: Mineweb

LONDON (Reuters)  – 

Top diamond producer De Beers has wrapped up a refinancing of debt facilities and a cash injection of $1 billion from a rights issue to cut debt, after being battered during the downturn.

The group, 45 percent owned by miner Anglo American, said on Tuesday it has cut debt by nearly a third. It did not give a figure, but in February the company said it expected net debt to fall to around $2 billion.

“As we emerge from the recession in 2010, the completion of the refinancing process enables De Beers to take advantage of a number of exciting opportunities for growth up and down the diamond pipeline,” Chief Executive Gareth Penny said.

The first quarter has been “encouraging” since demand is recovering and revenues have risen at the first three sales events of the year, a spokeswoman said.

De Beers had a total of $3.0 billion of international loan facilities, of which $1.5 billion were due to expire this month. All the new facilities have been renewed until 2012, with an option to extend them for another year, De Beers said.

Full rights for the $1 billion fund raising were taken up by all three shareholders, Anglo, South Africa’s Oppenheimer family, which holds 40 percent, and the government of Botswana, with the remaining 15 percent stake.

De Beers, which controls around 40 percent of the rough diamond market, was hit hard during the downturn as consumers shied away from luxury goods.

The group moved to an underlying loss of $220 million in 2009 after underlying net profit of $515 million in 2008, while rough diamond sales tumbled 46 percent to $3.2 billion. (Reporting by Eric Onstad; Editing by Rupert Winchester)

© Thomson Reuters 2010 All rights reserved

India More Than Triples Rough Diamond Imports in February

The following article is published courtesy of IDEX online

Image courtesy of IDEX online

India imported $983.6 million worth of rough diamonds in February, more than triple its imports in February 2009. The country imported 16.67 million carats of rough during the month.

India’s gross February imports mark a 362.3 percent year-over-year growth in value and 311.3 percent growth in volume, reflecting the rise in business activity as well as the price of rough.

India exported $80.7 million worth of rough diamonds, weighing 2.97 million carats, a 78.9 percent rise in value and 104.1 percent rise in volume, according to data published by the Gem & Jewellery Export Promotion Council (GJEPC).

Net imports in February stood at $902.9 million.

India’s diamond industry is enjoying a strong revival in recent moths, quickly bouncing back from the global economic crisis. Polishing facilities in Surat are largely back to pre-crisis activity, though many of the laid off workers refused to return to work, feeling that the diamond industry is not a stable one.

As a result, polishing facilities are hiring new hands, investing in training and paying the price of lost knowledge.

However, major diamond suppliers, including De Beers, Alrosa and Rio Tinto, are focusing their attention on the Indian market that displayed great resilience in the face of economic hardship.

Two rare historic gems to feature at Christie’s New York sale

The following article is published courtesy of Diamond World

The sale is slated for April, 22, 2010

Catherine the Great's Emerald and Diamond Brooch and Matching Pair of Earrings

Rare historic gems – Emperor Maximilian Diamond and the Catherine the Great Emerald and Diamond Brooch will be offered at Christie’s New York sale slated for April 22, 2010. Both gems carry a historical legacy that defines them priceless and both have not been displayed in public for decades, reports say.

The 39.55 carat cushion-shaped Emperor Maximilian Diamond was owned by Archduke Maximilian in 1860, and passed through royal hands, and through private sales to jewellers. It appeared at a Christie’s auction in July 1982, and was purchased by Laurence Graff for $726,000 – more than twice the estimated price of $330,000. Further, Graff sold it to Madame Imelda Marcos, wife of the president of the Philippines. After many such private transactions, it was acquired by the present owner and it will appear in public for the first time at Christie’s forthcoming auction, since 1982. The gem is estimated to fetch between $1 million to $1.5 million at the auction.

Catherine the Great Emerald and Diamond Brooch, centers on a hexagonal-cut Colombian emerald of exceptional quality weighing between 60 and 70 carats. The emerald is set with rows of rose and old mine-cut diamonds and is mounted in silver-topped gold. The jewel is remarkable for its quality and size. Originally it was owned by Catherine II of Russia, who ascended on the throne in 1762. The brooch was passed through the royal and noble treasures. An American buyer bought the brooch in 1972, whose estate is offering the jewel at the forthcoming Christie’s auction, and the jewel will appear on sale for the first time in nearly 40 years. The brooch’s estimated sale price is between $1 million to $1.5 million). The viewing of Christie’s New York sale will take place at Christie’s Rockefeller Center Galleries between April 17-21, 2010.

Tanzanite One Names Bernard Olivier CEO

The following article is published courtesy of: RTT news

Tanzanite One Limited (TNZ.L: News ) announced the appointment of Bernard Olivier, aged 34, as Chief Executive Officer, having served the Company since 2008 as a Director. In addition to being an expert on Tanzanite geology, Olivier has worked with a series of mining companies. Olivier was asked to join the TanzaniteOne Board in November 2008. From his appointment as an Executive Director in 2009 Dr Olivier has implemented a margin enhancement programme targeting inefficient cost bases and, with Zane Swanepoel, worked on optimising the Company’s Tanzanite mine operations, the company said.

As part of the Company’s strategic restructuring Zane Swanepoel, aged 50, becomes Chief Operating Officer – Tanzania. Swanepoel, based in Tanzania, will devote himself fully to operational mining and development work in Tanzania.

The company noted that these appointments will take place with immediate effect.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com

Mouawad partners with celebs Kardashian, Simpson

The following article is published courtesy of National Jeweler

New York–Celebrity jewelry collaborations have been around for years, but they have been springing up like gangbusters lately, with everyone from big-screen stars Angelina Jolie and Brad Pitt to reality show names from the Real Housewives franchise getting involved within the last six months alone. Among the latest partnerships to be announced are two involving jewelry designer Pascal Mouawad, who is collaborating with singer/actress Jessica Simpson and reality TV star Kim Kardashian. Details for the Kardashian collaboration have yet to be announced, but it seems that Kim is stepping out on her own for this one. Interestingly enough, less than a month ago, Los Angeles-based Virgins, Saints and Angels announced that Kardashian and her sisters, Kim and Khloe, all of Keeping Up With the Kardashians reality show fame, had designed a sterling silver and bronze collection in collaboration with the brand, with pieces set to hit retail stores in April. Meanwhile, Mouawad has also struck an exclusive licensing agreement with the Camuto Group, the master licensee for the Jessica Simpson Collection, a lifestyle brand consisting of everything from apparel and shoes, to handbags, luggage and jewelry. Under the terms of the agreement, Mouawad will design, develop, produce and distribute a line of fashion watches for the Jessica Simpson Collection, a move that will mark the 21st product category for the Jessica Simpson brand. The debut collection will include 35 designs that speak to Simpson’s personal style, with pieces ranging from classic leather and menswear styles to fashion-forward, jewelry-inspired timepiece designs. Retail prices will range from $60 to $250, and the collection will launch for fall 2010 at upper-tier department stores, specialty stores and select online stores, including JessicaSimpsonCollection.com, the company said. Past Mouawad celebrity jewelry collaborations include partnerships with model and television host Heidi Klum, her husband, recording artist Seal and, more recently, fashionista Nicole Ritchie on her House of Harlow line, model Erin Wasson on her Low Luv line and music producer Jermaine Dupri on his Nu Pop Movement watch collection.

Jewelry crimes up 3.5 percent in 2009

The following article is published courtesy of: National Jeweler

New York–The number of jewelry industry crimes rose slightly in 2009, with a significant uptick in incidents that occurred in stores or other business premises versus crimes that happened on the road, the latest data released by the Jewelers’ Security Alliance (JSA) shows.
 
According to the JSA’s 2009 Annual Crime Report, released Thursday, the number of crimes against the jewelry industry totaled 1,557 in 2009, up from 1,505 in 2008. Total dollar losses from crimes against jewelry firms declined from $103.5 million in 2008 to $97.7 million in 2009, a 5.6 percent decline.

Interestingly, 2009 data shows that while dollar losses and incidents of on-premises crimes–robberies, burglaries or thefts at a jewelry store, wholesaler’s office or manufacturing plant–mounted in 2009, off-premises crimes, primarily attacks against traveling jewelry salespersons, fell.

According to the JSA, on-premises criminal events totaled 1,420 in 2009, a 7.7 percent increase from 1,318 such crimes in 2008. Dollar losses for on-premises incidents totaled $72.9 million, up 20.3 percent from $60.6 million in 2008.

Off-premises events fell from 187 in 2008 to 137 in 2009, a 26.7 percent drop, according to the data. Financial losses during off-premises events totaled $24.8 million, down 42.2 percent from 2008’s $42.9 million.

In the report, the JSA states that the two major reasons for the decline in off-premises attacks were greater enforcement by local police and the FBI, and the significant decrease in the number of traveling salespeople on the road due to the economy.

As for homicides, JSA data shows a slight rise in the number of jewelry industry personnel killed during criminal incidents in 2009. According to the report, three jewelry industry workers and one customer died during robbery events over the past year, as compared to one jewelry staffer and one customer in 2008, and one staffer in 2007.

The total number of people killed during crimes against jewelry firms, including alleged criminals, declined from 11 in 2008 to 7 in 2009.

The report also provides a breakdown of crime by location.

The data shows California continues to lead the country in the number of jewelry crimes, with a total of 223 incidents in 2009. Rounding out the top five are Florida, where 133 crimes were reported, Texas with 110, New York with 106 and neighboring New Jersey with 58.

The JSA notes that there was a significant rise in the number of rooftop burglaries, where the initial entry onto the premises is made through the roof, in 2009. Seventeen states reported a total of 58 rooftop burglaries during the course of the year, with Florida leading the way with 24 such crimes.

According to the report, the states with the least amount of jewelry crime in 2009 were South Dakota and Vermont. No reports of jewelry crimes were submitted to the JSA from these two states.

NYC museum extends natural color diamond exhibit

The following article is published courtesy of National Jeweler

The five natural color diamonds in the Olympia Diamond Collection range in size from 1.01 to 2.34 carats

New York–New York’s American Museum of Natural History is extending an exhibit featuring the Olympia Diamond Collection, a set of five vivid natural color diamonds.

Originally, the five-stone exhibit was scheduled to run from September 2009 to February 2010 but, due to its popularity, the diamonds will remain on display until further notice, according to a news release from the owner of the gems, Scarselli Diamonds, a New York-based diamond company known for its expertise in fancy colors. Joshua Sheby, a gemologist with Scarselli Diamonds, curated the Olympia collection.

In the release, Scarselli’s Bruno Scarselli noted there have only been two other important museum collections featuring colored diamonds, the Aurora Collection, an introduction into the world of fancy color, and The Splendor of Diamonds exhibit, an interesting display of large diamonds.

“But our exhibit showcases the best of the best, the strongest colors attainable in each color range,” he said. “While it might be the rarity and multimillion dollar value of these five gems that attracts people to the museum’s Morgan Memorial Hall of Gems, it is the extraordinary beauty of these diamonds that thrills them. We want as many of the museum’s four million yearly visitors as possible to have the opportunity to see the collection.”

The Gemological Institute of America (GIA) has graded each diamond in the Olympia collection as “vivid,” meaning they all have the highest levels of color saturation possible for colored diamonds.

The collection consists of: a 1.01-carat, vivid orange-yellow diamond; a 1.02-carat, vivid blue-green diamond; a 2.17-carat, vivid purplish-pink diamond; a 2.13-carat, vivid blue diamond; and a 2.34-carat, vivid orange diamond.

The five diamonds in the Olympia grouping aren’t the only gems making headlines for Scarselli.

Before Valentine’s Day, the Scarselli red diamond took center stage on the CBS morning news program, The Early Show.

Graded by GIA as a fancy red, the 1.71-carat, heart-shaped stone is the largest natural red diamond in the world and has an estimated value of $10 million, according to the release.

Burma Gemstone Production Down Nearly 50% for Calendar Year 2009

The following article is published courtesy of: Pala International

Vague mention was made last week of the annual general meeting of the Myanmar Gems Entrepreneurs Association, at the site of the 47th Gems Emporium now taking place. According to the official New Light of Myanmar daily, the meeting, held March 7, was attended by Minister of Mines Brigadier-General Ohn Myint and other department heads. No specifics from the meeting were reported.
What was reported on March 5, however, were industry statistics for December 2009, which round out another calendar year. (The fiscal year for Burma runs April–March.) The results are, as might be expected, dismal, with not a single production increase, except that of pearls.

Gemstone Production Figures – 2009
Gemstone, jade, and pearl production for calendar 2009 (Central Statistical Organization):
Total gemstone production: Down 46% from 2008
Ruby production: Down 10% over 2008
Sapphire production: Down 30% over 2008
Spinel production: Down 48% from 2008
Peridot production: Down 66% from 2008
Jade production: Down 18% from 2008
Pearl production: Up 5% from 2008
Total trade with China, however increased by 10 percent, as reported by Xinhua last week.

Except for anecdotal information, we haven’t seen statistics on how gemstone sanctions have affected workers, but a kindred sector—the garment industry—has been decimated by sanctions that were imposed beginning in 2001. According to a March 10 Reuters story, the Burma garment industry is estimated to have shrunk by 75 percent, with 280 out of 400 factories closing, and 240,000 out of 300,000 jobs lost.

HRD Antwerp NV opens Istanbul gem lab

The following article is published courtesy of: Israeli Diamond Industry Portal

Intellectual property: IDI

The HRD logo is exclusive property of: HRD Antwerp NV

HRD Antwerp NV officially opened its first gemological laboratory outside Antwerp and in  Istanbul, Turkey.

According to a company press release quoted by IDEX, the gem lab’s decision to open a certification laboratory in Istanbul was prompted by  to the city’s status as one of the world’s major jewelry hubs, as well as by HRD Antwerp NV’s desire to boost customer confidence in Turkish jewelry.
“We look forward to a successful partnership with the Istanbul jewelry industry,” said HRD Antwerp NV General Manager Georges Brys. “We see this as a natural partnership between two cities with a long history – Antwerp for diamonds and Istanbul for jewelry.”

 

The Istanbul gemological lab will provide on-the-spot diamond jewelry certification services.

 

South Africa: $3M diamond parcel mysteriously disappears

The following article is published courtesy of: Israeli Diamond Industry Portal

Intellectual property: IDI

The  mysterious disappearance of a 14,931 carats  diamonds consignment, worth nearly $3 million, from the Oliver Tambo International Airport in South Africa, has authorities baffled, the East African reported.
The diamond parcel, which belongs to Williamson Diamonds of Tanzania, vanished from the Oliver Tambo International Airport en route to Belgium in October 2009, but the theft was kept secret by the Tanzanian Parliamentary Committee on Energy and Minerals.
The decision to keep the incident under wraps, said the report, stemmed from fears the incident would have a negative impact on the royalties earned by the government, which has a 25% stake in the firm. The remaining 75% of Williamson Diamonds is owned by Petra Diamonds Ltd.
While kept from the media, the government did, however, report the theft to the Kimberly Process Secretariate. A letter from Tanzania’s Ministry of Energy and Minerals to the Kimberley Process, dated November 17, said: “We would like to bring to your attention that a diamond parcel from Tanzania, which was sealed on October 19, 2009 weighing 14,931.35 carats with an estimated value of $2,880,257.42 was stolen on October 22, 2009 whilst in transit through O.R. Tambo international airport, Johannesburg en route to Belgium.
“(…) This parcel was exported by the Williamson Diamonds Limited (WDL) company to Antwerp, Belgium and followed all the procedures under KPCS. The theft has been reported to the South African Police Services Organized Crime Unit on October 22, 2009 and efforts were made to try to recover the diamond parcel but until now they have not been recovered.
“We take this opportunity to inform you so that the KP family could be informed and cautioned to be aware of the stolen diamonds produced from the WDL mine at Mwadui, Shinyanga, Tanzania.”
South African Police divisional commissioner for Detective Services and Crime Intelligence Raymond Lalla, confirmed the investigation was ongoing, and assisted by Interpol.