Debswana, equally owned by Botswana and Anglo American Plc’s De Beers, sells 75% of its output to De Beers, with the balance taken up by the state-owned Okavango Diamond Company (ODC).

Last year, Botswana and De Beers agreed to a new 10-year diamond sales agreement, where ODC will receive 30% of Debswana’s produce and this will be scaled up to 50% by the end of the new contract.

In the first three quarters of the year up to September, Debswana had sold diamonds worth $1.53 billion compared to $3.19 billion in the same period last year, the Bank of Botswana said on Tuesday. 

In local currency terms, sales were down 50.3% to 20.9 billion pula, which translates to about $1.55 billion based on current exchange rates.

Botswana gets 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from diamonds. It is the world’s top producer of the gem by value.

The southern African country will hold a general election on Wednesday, with the poor performance of the economy-largely due to the downturn in the global diamond market-and high levels of unemployment among the issues in focus.

“Our diamonds have not been selling since April, so yes, our revenues are down but the economic fundamentals still remain intact,” President Mokgweetsi Masisi, who is seeking a second term, said at a presidential debate last week.

($1 = 13.4590 pulas)

(Reporting by Brian Benza; Editing by Abinaya Vijayaraghavan and Bhargav Acharya)

The poll could be competitive, analysts said, although a divided opposition gives the advantage to Masisi’s Botswana Democratic Party (BDP), which has ruled the country of 2.3 million people since its independence from Britain in 1966.

Botswana has enjoyed stability and relative prosperity thanks to its diamond wealth and small population, which gets free healthcare and education. It is the world’s top producer by value of the gem.

But a downturn in the diamond market has put a squeeze on revenues in the last few years, and the country has struggled to diversify its economy. Opponents say the BDP has been in power too long and accuse it of economic mismanagement and corruption, which it denies.

“Our diamonds have not been selling since April so yes, our revenues are down but the economic fundamentals still remain intact,” said Masisi at a presidential debate last week.

“We are going to continue with the projects and policies we have come up with that are aimed at putting more money and wealth into the hands of the citizens of this country,” he said.

One success of his first term was negotiating a new contract with diamond giant De Beers which will give Botswana a greater share of its rough diamonds. He also lifted a ban on elephant hunting which he says benefits rural communities, and instated an import ban on some produce items to help farmers.

His main challenger is Duma Boko of the opposition coalition Umbrella for Democratic Change (UDC).

The other candidates are Dumelang Saleshando of the Botswana Congress Party and Mephato Reatile of the Botswana Patriotic Front, backed by former President Ian Khama who quit the BDP after a feud with Masisi over scrapping the hunting ban and other issues.

Opponents have attacked Masisi’s economic record, citing rising unemployment, which stands at around 28%.

“It is not acceptable that a country such as ours which is the fifth richest per capita in Africa still has so many people living in poverty,” said Boko at the debate.

Botswana actually has the fourth highest gross domestic product (GDP) per capita of countries in sub-Saharan Africa, according to World Bank figures.

Boko has pledged to more than double the minimum wage and increase social grants, saying he would get the money by reducing wasteful spending.

The BDP has faced declining popularity but maintains a large majority in parliament, having won 38 of the 57 contested seats in 2019. The UDC won 15 seats. Voters in Botswana elect parliamentarians, who then elect the president.

Analysts said the opposition is crippled by a lack of funding.

“The playing field is not even,” said Ringisai Chikohomero, from the South Africa-based Institute for Security Studies.

After the last election the opposition claimed fraud and challenged the results at the High Court, which dismissed the case.

(By Brian Benza and Nellie Peyton; Editing by David Gregorio)

BHP walked away from a $49 billion bid to acquire Anglo in May after it was rebuffed three times. With a six-month block on another approach set to expire at the end of November, a deal is again under scrutiny.

Anglo was able to convince investors during BHP’s approach that it had a better plan to grow value, focused on shedding underperforming platinum, diamonds and coal to focus on copper, a metal key for the energy transition.

If that succeeds, the higher value that comes with copper assets may help keep Anglo safe, one portfolio manager at a Cape Town fund manager said.

But the longer it takes to achieve a transformation, the more likely it is that investors will be tempted by another bid.

Investors with shares in both companies told Reuters that even though they expect BHP CEO Mike Henry to renew his pursuit for the London-listed miner, the timing and even the rationale for such an approach could be shaped by whether Anglo can grow beyond the grasp of cash-rich rivals.

Anglo CEO Duncan Wanblad is rushing to sell coking coal mines in Australia and nickel assets in Brazil while spinning off platinum mines in South Africa. The company is also weighing whether to sell or separately list its De Beers diamonds unit.

Anglo’s world-class copper assets in Latin America are the prize for rivals seeking increased exposure to copper.

But its copper mines are still dogged by operational issues. On Thursday, it said copper output declined 13% in the third quarter, though the company remains on course to meet this year’s output guidance of 730,000 tons to 790,000 tons.

Anglo declined to comment. BHP did not respond to emailed requests for comment.

Choosing the moment

Anglo’s shares rose as much as 4.3% in London on Monday amid a broad uptick in mining stocks, but have shed most of the premium they added in the wake of BHP’s approach.

If Anglo’s valuation takes time to catch up with its restructuring, it could present a golden opportunity for BHP.

According to a source at a top investor in both companies, a restructured Anglo creates more value for BHP, which is still wary of the risks associated with absorbing South African assets.

“If I was BHP, I would say let Anglo do most of the heavy lifting, the restructuring it promised it will do by end 2025,” the source told Reuters.

Any potential new bid should come when some of the restructuring is expected to completed by June or July next year, they added.

BHP may have to wait until Anglo spins off its platinum business by mid-2025 to make the deal less complex, UBS Group analysts said. “We expect Anglo to re-rate as the group simplifies,” UBS said. “If not, we see potential for another takeover approach.”

Christiaan Bothma, an investment analyst at Johannesburg-based money manager Sanlam Private Wealth, which has shares in both companies, told Reuters it would “make sense” for BHP to wait for Anglo to do the asset separation for them.

But he added: “The counter argument to this would be if they wait (too) long, Anglo’s valuation premium may be too high or iron ore prices too low (BHP’s primary currency).”

(By Felix Njini; Editing by Veronica Brown, Pratima Desai and Jan Harvey)

Anglo said its copper output fell 13% in the July to September quarter, while rough diamond production decreased by 25% on cuts due to prolonged lower demand.

Its De Beers diamonds unit is exploring options for further output cuts in future, Anglo said.

For the first nine months of 2024, copper output fell 4% to 575,000 tons and diamond production was down 21% at 18.9 million carats.

Anglo still expects to produce 730,000-790,000 tons of copper and 23-26 million carats of rough diamonds this year, even as it assesses additional production cuts going forward.

Its shares, which have risen around 18% this year, opened up 2.2%.

The mining giant is restructuring its business to mainly focus on energy transition metal copper after fending off a $49 billion takeover offer from bigger rival BHP Group in May.

Copper will make up 60% of Anglo’s business after it sells its Australian steelmaking coal assets and nickel mines in Brazil, as well as divesting De Beers and its platinum business Amplats in South Africa.

Apart from its copper assets in Chile, Anglo will also retain iron ore mines in South Africa and Brazil, as well as the Woodsmith fertilizer project in the United Kingdom, which it has now slowed down.

Anglo said steelmaking coal’s production fell by 6% in the third quarter after shutting its Grosvenor mine in Queensland due to an underground fire.

The London-listed miner, the world’s third-largest exporter of metallurgical coal, lowered its yearly production guidance to 14-15.5 million tons from a previous forecast of 15-17 million.

Anglo said the final round of bidders for the coal assets was in place and it expected to announce the sale agreement within months.

(By Clara Denina and Felix Njini; Editing by Stephen Coates and Mark Potter)

Australia’s Lucapa achieved third-quarter revenue of $16.9 million, an 86% year-on-year increase, driven mainly by the sale of high-quality diamonds, averaging $3,033 per carat. 

This growth was also attributed to the company’s access to higher-grade mining blocks, a result of strategic river diversions aimed at mitigating the impact of flooding at the Lulo operation in Angola.

Nick Selby, Lucapa’s managing director, expressed optimism about the future, especially with the access gained to the higher-grade Lazaria gravel, historically known for producing large, high-value diamonds. 

“We are aiming for a strong finish to the year,” Selby said, noting that the company sold a 176-carat diamond for $3 million, further boosting results.

Africa-focused Petra Diamonds also reported promising figures, with production rising by 7% to 679,625 carats for the quarter ended September 30. The increase was driven by higher grades at the company’s flagship Cullinan mine in South Africa and its Williamson mine in Tanzania.

Petra’s chief executive officer, Richard Duffy, attributed this growth to “solid performances” from these mines, despite weaker market conditions.

To counteract the softness in the rough diamond market, Petra deferred in August the sale of a significant portion of its South African diamonds. Its combined first and second tenders, however, indicated a 13% increase in overall average prices, thanks to an improved product mix, which included a standout 18.85-carat blue diamond from Cullinan that fetched $8.5 million.

Despite ongoing challenges in the global diamond market, both Lucapa and Petra’s results reflect resilience and strategic adjustments, injecting cautious optimism into a sector eager for recovery. 

As both companies continue to leverage high-value diamonds and strategic planning, industry observers remain hopeful for sustained market improvements heading into the end of the year holidays, which tend to help boost diamond sales.

Explorers and developers often overstate the certainty of mineral resource classifications based on inadequate data, Desharnais said at an event in Vancouver on Wednesday. The practice has in some instances led to unexpected analyst downgrades, soaring costs and debt, and the derailment of promising assets.

“That classification debt, unfortunately, needs to get paid,” he told about 430 conference participants from 21 countries at CIM’s first Mineral Resources & Mineral Reserves conference. “The CEO may be walking around with a 3-million-oz. resource estimate, but they haven’t earned that classification with sufficient drilling. When the debt comes due, it’s often through painful reclassifications and revisions.”

Decade of missteps

Several recent projects have demonstrated the high cost of classification debt.

Rubicon Resources’ catastrophic 91% downgrade in resource estimates in 2015 stands as one of the most glaring examples. After it began initial production at the F2 gold deposit on its Phoenix property in Ontario’s Red Lake district, the company found the deposit to be uneconomic, shuttering the operation. It had not completed a feasibility study for the high-grade project.

The size of the downgrade blindsided investors and stakeholders, and the company had to undergo a painful restructuring to survive. Rebranded as Battle North Gold, Evolution Mining (ASX: EVN) bought it and its renamed Bateman project in 2021 for $343 million.

In 2018, Pretium Resources promoted the Brucejack gold project in northwestern British Columbia’s Golden Triangle, now owned by Newmont (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM), as a high-grade gold deposit. Yet, the asset disappointed when gold production grades fell far below expectations.

The nuggety nature of the gold, with Brucejack’s steeply dipping quartz veins and erratic grade distribution, made it difficult to consistently meet production targets, forcing the company to push tonnage through the mill to compensate for lower-than-expected grades.

Aurora (2018), Rainy River (2019), and Gold Bar (2020) show how resource overestimation hurt Guyana Goldfields, New Gold (TSX: NGD; NYSE: NGD) and McEwen Mining (TSX: MUX; NYSE: MUX). They had to downgrade estimates mid-operation. This triggered mine plan revisions, soaring costs, production delays, and financial strain.

Grade versus geometric risk

Desharnais identifies two types of risk that contribute to resource misclassification: grade risk and geometric risk.

Grade risk reflects patchiness in ore quality, while geometric risk involves uncertainty about the size and shape of mineralized domains within the deposit.

Conditional simulations help assess grade risk, Desharnais said, but tools to quantify geometric risk are lacking.

Companies often overestimate deposit geometry without tighter drilling, leading to costly misjudgments.

“Sparse drilling gives us a simpler picture than reality,” he explained, adding that only closely spaced drilling can reveal the true complexity of orebodies.

Best practices

Mathieu Doucette, a senior geologist at ArcelorMittal (NYSE: MT), talked about the difficulty of classifying resources at Canada’s largest iron mine, the Mont-Wright iron ore mine in Quebec, producing continuously since 1974. Outdated data can affect current resource estimates. He illustrated how mixing in fresh drill holes helps manage geological risk as part of a dynamic model essential to avoid misclassification.

“The first thing [a QP] will do is akin to lighting a torch,” he said. “But everything on the edges is dark, and you can’t really see it. Drill holes are our ability to try and get some information, but sparse data hides the full picture.”

David Machuca-Mory, a principal consultant at SRK Consulting, said fixed models are risky. Deposits can be more unpredictable than they seem. Adaptive methods help ensure estimates reflect reality, reducing the chance of costly surprises.

“Even with dense drilling, some areas remain highly uncertain,” Machuca-Mory said. “Confidence intervals are large, and relying solely on drill spacing doesn’t always guarantee accurate classification.”

Cognitive biases

Desharnais said that misclassification is not just a technical problem; human psychology plays a significant role.

Anchoring bias makes companies stick with initial estimates despite new data. Authority bias pressures geologists and consultants to confirm favourable results to please management or investors.

“The consulting firm wants the next contract,” Desharnais said. “The CEO has family and friends invested and needs good news. These biases create a system where classification debt builds up across projects, only to be paid through painful revisions later.”

Owning up

Desharnais argued for more conservative resource models and said benchmarking against operating mines would help set realistic expectations. He suggested that technical reports include histograms that show the distance between drill holes and classified resources, he added.

“It forces the QP or CP to look at what they’ve done and ask: Does this make sense?” he said. “Transparent reporting would help prevent overly aggressive classifications, ensuring companies earn their resource classifications with sufficient data.”

Such measures may slow development, but they could also reduce the prevalence of misclassified resources in the industry. Desharnais urged geologists to scrutinize each block of material above the cut-off grade.

“Over-promising today only delays the inevitable correction tomorrow,” he said.

(By Felix Light; Editing by Louise Heavens)

Targeting ‘Zillennials’, the microgeneration born between 1993 and 1998, this mined diamond push leans into the themes of modern love and the evolving dynamics of relationships. 

These young adults are believed to be behind the rise of affordable lab-grown diamonds (LGDs), particularly in the North American market.

While companies dealing in man-made stones, like Pandora, are thriving — Pandora even boosted its annual forecast after first-quarter sales of LGDs soared 87% — the world of mined diamonds has seen a sharp decline. Prices have dropped nearly 20% in the past year after a 2022 spike.

Anglo American’s De Beers, the largest diamond producer by value, has consistently cut output over the past two years due to sluggish demand.

Sanctions-ridden Russian miner Alrosa, the world’s largest producer of rough diamonds by volume, stopped publishing sales data in early 2022 and cut its output by 2.8% to 34.6 million carats last year.

The campaign comes as De beers seeks to reposition itself in the market as a top jewellery group. It is also the first major play from the recently announced partnership between Signet and De Beers.

It comes after months of intensive training for Signet’s 20,000 sales associates to equip them with the knowledge to talk about what makes mined diamonds special.

The different elements of the strategy are set to air across all the usual suspects: social media, online platforms, and at Signet’s Jared, KAY, and Zales stores. It’s centred on real-life couples, shining a light on the personal growth and relationship-building that often take precedence before tying the knot. The story of diamonds, journeying from deep within the earth to that final polish, parallels the twists and turns of a modern love story.

Signet’s data-driven insights predict a wave of engagements on the horizon, making this campaign perfectly timed. It taps into the milestones that today’s couples experience — moving in together, merging finances, breaking up, getting back together — and reflects those in their new collections, like KAY’s “Milestones Natural Diamond Collection”, which highlights love’s strengthening moments through rings, pendants, and earrings.

Jared is also getting in on the action with their signature bridal brand, Chosen, offering a curated selection of diamonds, custom centre stones, and personalized settings. Later this month, Jared will unveil “UNSPOKEN”, a collection of diamond jewellery set in high-polish yellow and white gold.

“Like the journey of a diamond formed deep in the earth, true love is forged by fire. A natural diamond, like true love, is always worth the wait,” De Beers Brands’ chief executive officer, Sandrine Conseiller, said.

De Beers is targeting annual core profits of $1.5 billion by 2028. Last year, the business made just $72 million, though traditionally its profits have ranged between $500 million and $1.5 billion as the diamond industry swings from boom to bust.

The diamond miner seems ready to fly alone as it did for 124 of its 136 years of existence. Anglo American is in the process of selling its 85% stake in the diamond miner.

Clara is a digital marketplace that modernizes how rough diamonds are sold, using technology to connect buyers and sellers, driving economic efficiencies for buyers and sellers. Clara enables verification technologies to efficiently integrate provenance and traceability services by transacting individual rough diamonds. This innovation addresses the industry’s need for improved standards of transparency and trust. 

The definitive sales agreement includes Clara Diamond Solution GP, Clara Diamond Solutions LP and Clara Diamond Solutions BV, including all intellectual property rights, commercial contracts and operating assets.

The total consideration is $3 million on closing and the return of 10 million Lucara common shares initially issued as partial consideration when Lucara acquired Clara in 2018.

Lucara will retain a 3% net profit interest on the net earnings of Clara. Lucara has also granted Clara a five-year rough diamond supply agreement, which may be terminated after the second anniversary or as otherwise mutually agreed between the parties.

“The divestiture of Clara enables us to intensify our strategic focus on maximizing returns and long-term value creation at our world-class Karowe diamond mine in Botswana. The company’s core competencies and future growth reside in the successful execution of the Karowe underground expansion project,” said Lucara CEO William Lamb.

Aaron Ariel, current managing director and original founder of Clara, added: “Nine years ago, we had a big idea for a technology that could transform the global rough diamond market for everyone. Today, we are excited about the opportunity to realize its full potential, which remains largely unexplored. We believe it will become the industry’s premier global rough diamond marketplace.”

At the end of the third quarter of 2024, the MINING.COM TOP 50* ranking of the world’s most valuable miners had a combined market capitalization of $1.51 trillion, up just under $76 billion from end-June, largely on the back of gold and royalty stocks.

The total stock market valuation of the world’s biggest mining companies is up a fairly modest 8% year to end-September and despite the good run is still $240 billion below the peak hit in the second quarter of 2022.  

Ranks, value of gold stocks swell

The value of precious metals and royalty companies climbed by a combined $42 billion or 16% during the quarter and gold counters dominate the best performing ranks. 

Were it not for the limited tradability of stock in Russia’s Polyus, which lost some ground over the three months despite gold’s stellar performance, bullion’s effect on the Top 50 would have been even more pronounced. 

Canada’s Alamos Gold joins the top 50 for the first time with a  more than 31% jump in value lifting it six places to number 48 with a valuation of $8.2 billion at the end of the quarter while the second quarter’s newcomer Pan American Silver (following its absorption of Yamana Gold) hangs on at no 50.

Alamos Gold last month raised its production guidance by over 20% for 2025-2026 with the inclusion of the Magino mine and its integration with its Island Gold operation in Ontario. The Toronto based miner has long term ambitions to grow its production base to 900,000 ounces per year.

Uzbekistan is readying an IPO for Navoi Mining and Metallurgy Combinat – the world’s fourth largest gold mining company and significant uranium producer in 2025. NMMC debuted a $1 billion bond offering last week, marking the first global debt market issuance from a gold mining company since June 2023.

Navoi should easily join the ranks of gold producers in the top 50 thanks to ownership of the world’s largest gold mine, Muruntau, and annual production of 2.9 million ounces at grades and per ounce extraction costs the envy of the sector.  

The Muruntau open pit mine southwest of the Kyzylkum desert, originally developed during the Soviet era as a source of uranium, has estimated reserves of around 130 million ounces of gold. 

Goldilocks copper

Copper specialists, and those with fat gold credits, have gained a combined 36% year to date as the copper price continues to flirt with the $10,000 a tonne level but momentum slowed dramatically during Q3 with the group contributing only $7.2 billion in added market worth during the quarter. 

Amman Mineral’s fierce rally also came to an abrupt halt during the quarter with the counter losing 18% over the three months and coming close to falling out of the top 10.

Investors who bought Amman, owner of the world’s third largest mine worldwide in terms of copper equivalent, at the IPO price in Jakarta a year ago, are still enjoying 400% gains since then however. 

Southern Copper’s position as the world’s third most valuable mining stock seems entrenched after a double digit percentage gain in Q3 compared to a much more sedate performance by Freeport-McMoRan which now has to gain a full $20 billion in market cap to haul in its Mexico City-based rival.

Light on lithium 

Rio Tinto’s vote of confidence in the long term future of the lithium sector (and its own ability to make M&A work) dominated the news at the start of the December-quarter but it’s worth noting that Arcadium’s more than 90% surge since the all-cash offer was first announced are not enough for the stock to enter the rankings.

Three lithium counters exited the rankings this year, Australia’s  Pilbara Minerals and Mineral Resources and China’s Tianqi Lithium as the deep slump in prices for the battery metal continues to take its toll.  

Last quarter’s no 50, Ganfeng Lithium jumps six places after being swept up in the stimulus-induced rally on Chinese stock markets at the end of the quarter while Tianqi’s performance so far in October should see it reenter the Top 50 in due course. 

Ganfeng was barely holding on at position 50 at end-June and with gold price momentum continuing and two gold mining companies waiting in the winds – Yintai and Alamos – only three lithium counters in the top 50 may be a reality for some time to come. 

After peaking in the second quarter of 2022 with a combined value of nearly $120 billion, the remaining lithium stocks’ market value has now shrunk to $34 billion.  

Iron ore ground down

Despite a modest improvement during the quarter, the mining industry’s traditional big 5 – BHP, Rio Tinto, Glencore, Vale and Anglo American – remain in the red for 2024, losing $24 billion since the start of the year. 

The big 5 diversifieds now make up 29% of the total index, down from a height of 38% at the end of 2022.  

Iron ore’s less than rosy outlook – the late boost China’s recent stimulus package notwithstanding – saw Fortescue once again feature on the biggest losers list and Cleveland Cliffs exit the ranking with the US iron ore miner’s 37% decline this year exacerbated by its inability to capitalize on the blocking of the Nippon-US Steel tie up. 

Iron ore’s representation in the top 50 have diminished in the last couple of years – Brazil’s CSN Mineração dropped out during Q1 this year while Anglo-controlled and separately-listed Kumba Iron Ore has lost touch with the top tier after a 40% fall year to date.

Click on image for full size table.

NOTES:

Source: MINING.COM, stock exchange data, company reports. Share data from primary-listed exchange at close Oct 4, 2024 close of trading converted to US$ where applicable. Percentage change based on US$ market cap difference, not share price change in local currency.  

As with any ranking, criteria for inclusion are contentious. We decided to exclude unlisted and state-owned enterprises at the outset due to a lack of information. That, of course, excludes giants like Chile’s Codelco, Uzbekistan’s Navoi Mining (the gold and uranium giant may list later this year), Eurochem, a major potash firm, and a number of entities in China and developing countries around the world.

Another central criterion was the depth of involvement in the industry before an enterprise can rightfully be called a mining company.

For instance, should smelter companies or commodity traders that own minority stakes in mining assets be included, especially if these investments have no operational component or warrant a seat on the board?

This is a common structure in Asia and excluding these types of companies removed well-known names like Japan’s Marubeni and Mitsui, Korea Zinc and Chile’s Copec. 

Levels of operational or strategic involvement and size of shareholding were other central considerations. Do streaming and royalty companies that receive metals from mining operations without shareholding qualify or are they just specialised financing vehicles? We included Franco Nevada, Royal Gold and Wheaton Precious Metals on the basis of their deep involvement in the industry.

Vertically integrated concerns like Alcoa and energy companies such as Shenhua Energy or Bayan Resources where power, ports and railways make up a large portion of revenues pose a problem. The revenue mix also tends to change alongside volatile coal prices. Same goes for battery makers like China’s CATL which is increasingly moving upstream, but where mining will continue to represent a small portion of its valuation.  

Another consideration is diversified companies such as Anglo American with separately listed majority-owned subsidiaries. We’ve included Angloplat in the ranking but excluded Kumba Iron Ore in which Anglo has a 70% stake to avoid double counting. Similarly we excluded Hindustan Zinc which is listed separately but majority owned by Vedanta.

Many steelmakers own and often operate iron ore and other metal mines, but in the interest of balance and diversity we excluded the steel industry, and with that many companies that have substantial mining assets including giants like ArcelorMittal, Magnitogorsk, Ternium, Baosteel and many others.

Head office refers to operational headquarters wherever applicable, for example BHP and Rio Tinto are shown as Melbourne, Australia, but Antofagasta is the exception that proves the rule. We consider the company’s HQ to be in London, where it has been listed since the late 1800s.

Please let us know of any errors, omissions, deletions or additions to the ranking or suggest a different methodology.

Russian diamond giant Alrosa holds a 41% stake in Angola’s Catoca operation, which also owns just over half of the Luele mine. The southern African nation’s Endiama Mining SA owns a majority of both the mines and has made management changes to shore up its control, according to chief executive officer José Ganga Júnior.

“The diamonds we have in Angola are ours,” Ganga Júnior said in an interview in the country’s capital Luanda.

However, Angola “occasionally encounters difficulties” with clients in certain markets because of Alrosa’s stake in the mines, the CEO said. Ganga Júnior declined to say whether Angola was under pressure to oust Alrosa from Catoca. “Alrosa has no interference in Angola’s operations,” he said.

Group of Seven nations agreed to ban Russian diamond imports from the start of this year to curb the Kremlin’s ability to fund its invasion of Ukraine. The ban initially covered all imports of rough diamonds directly from Russia, but was extended from March to include stones processed in third countries. Alrosa is also sanctioned by the US and European Union.

To comply with G-7 sanctions, Endiama must set up a system to track and identify the diamonds that originate in its mines, Ganga Júnior said.

A diamond’s origin is clear at the start of the supply chain when it is issued a certificate under the Kimberley Process, which was designed to end the sale of so-called blood diamonds that financed wars. But after that, the stones can become difficult to track.

Alrosa helped establish both the Catoca and Luele mines, and still receives revenue from both operations. However, those funds are held in Angola and can’t currently be repatriated to Russia.

Russia said earlier this year that Alrosa may sell its Angolan interests as its partners believe the investment is preventing Catoca’s development, according to Interfax.

In May, Angola’s Minerals and Petroleum Minister Diamantino Azevedo said the country’s long-time partnership with Alrosa had become “toxic.”

Russia’s state-controlled Alrosa vies with Anglo American Plc’s De Beers as the world’s biggest diamond producer.

(By Candido Mendes)

The Australian miner said last year it was going ahead with a $40 million expansion of Diavik by taking the existing A21 open pit underground, which would extend the operation’s life to at least early 2026. 

Phase 1 of the A21 underground project is slated to produce an extra 1.4 million carats. Phase 2 is expected to add another 800,000 carats and was approved earlier this year with an additional investment of $17 million.

The construction of the A21 underground mine involved the development of over 1,800 metres of underground tunnels to access the orebody and begin underground production.

Rio said there were no lost time injuries after more than 100,000 labour hours completed over 20 months during the development and construction work.

“The A21 underground operation is positive news for our employees, partners, suppliers and local communities in the Northwest Territories, as it will enable operations to continue through to closure,” Diavik mine chief operating officer of Matt Breen said in the statement.

“Rio Tinto’s decision to proceed with Phase 2 is a testament to the excellent performance of our Diavik team in successfully developing the underground mine beneath the previously mined A21 open pit,” Breen said.

He added that the company is continuing its investment in preparing for the closure and remediation of Diavik mine site, focusing on progressive reclamation activities such as earthworks, site clean-up, and equipment procurement.

Diavik represents one of Canada’s largest diamond mines in terms of volume of rough diamonds, having produced over 144 million carats of rough diamonds since mining began in 2003.

Titled Colour Awakened, this collection is headlined by seven “Old Masters”, notable historic diamonds from the Argyle diamond mine in Western Australia that operated from 1983 to 2020.

The Old Masters comprise seven round brilliant cut, pink and red diamonds, ranging in size from 0.60 carat to 2.63 carats. All unearthed from the mine over a decade ago — in one case, as far back as 1987 — each diamond has been carefully retrieved from private vaults and handpicked for inclusion in this year’s tender.

“No other mining company in the world has custody of such a kaleidoscope of coloured diamonds,” Sinead Kaufman, chief executive of Rio Tinto Minerals said in the statement.

In addition to the Old Masters, the Art Series 02 includes legacy inventory of pink, red and violet diamonds from the Argyle diamond mine, together with white and yellow diamonds from Rio Tinto’s Diavik diamond mine in Canada’s Northwest Territories.

“Four years on from the closure of the Argyle mine, our Beyond Rare Tender platform is a testimony to the enduring prestige of the Argyle Pink Diamonds brand, the quality of production from our Diavik mine, and the ongoing demand for highly collectible natural diamonds,” Kaufman said.

In total there are 76 diamonds, weighing 39.44 carats, comprising seven Old Masters, including one Fancy Red diamond; 32 single lots of pink and violet diamonds, including one Fancy Purplish Red diamond; and a rarified offering of nine carefully curated diamond sets, two of which include a 2.47-carat Fancy Intense Yellow diamond and a 4.04-carat D colour diamond, respectively, each from Diavik.

The 48 lots will be showcased in London, Australia, Singapore and Belgium, with bids closing on November 18.

This week, the miner withdrew its application with the Wek’èezhìı Land and Water Board, which had deemed the Sable underground development to be a major mining project that required approval from the Tłı̨chǫ people, a Dene First Nations group.

“Burgundy has made this difficult decision after taking to heart all the comments and feedback provided during the application process,” the company said in a letter to the water board.

“The information provided by the intervenors and the Tłı̨chǫ government has been the subject of careful deliberation by Burgundy, and has led Burgundy to conclude that more time is needed to improve the application for the proposed project.”

The company said it could revisit the project in the future after incorporating feedback from the Tłı̨cho government. A public hearing due Wednesday on the expansion was cancelled after the company pulled its application. 

The CBC first reported the water board letter on Tuesday. The broadcaster also said Burgundy called for changes in “inflexible” regulations in a letter the same day to NWT Premier R.J. Simpson. Revisions could help Ekati operate until at least 2040, the company argued.

Mine closures

Withdrawing Sable’s proposed extension comes as the territory’s three diamond mines face closures in the coming years. Rio Tinto’s (NYSE: RIO; LSE: RIO; ASX: RIO) Diavik mine is due to close in 2026, and Anglo American (LSE AAL) unit De Beers’ Gahcho Kué mine is slated to run until 2028.

While Ekati’s Sable open pit is expected to wind down this year, its Point Lake open pit could produce until 2029, according to company projections.

Burgundy has also said recent drilling at the main Misery orebody could extend Ekati’s mine life. The crew found a fancy yellow diamond about 25 metres below the last planned mine level and the company contends there’s a larger ore body at depth.

In the three months to June 30, Ekait produced 1.22 million carats and sold 1.03 million carats at an average of $103 per carat to earn $106 million, the company said in July. The Fox underground updated prefeasibility study was 30% complete and the Point Lake open-pit preparation was progressing towards production early next year, it said.

Burgundy acquired Ekati when it purchased its former owner, Arctic Canadian Diamond, in March 2023 for $136 million. But since then, it has faced financial pressured due to headwinds in the global diamond market.

Karelian said it has collected twenty-one glacial till samples for analysis and is now preparing for a drilling program in the winter. This campaign would depend on the results of the mineral analysis, which aims to further explore the identified kimberlitic targets. 

The company noted that the thickness of the glacial till cover increases up-ice to the north-west towards a swampy area, which is inaccessible to an excavator until the ground is frozen.

Karelian said it had dug as close as possible to the area down-ice that might be the source of the kimberlite minerals and the green diamond. Six possible kimberlite locations, identified earlier using geophysical methods, are in this same zone, it said. 

Many of the pits were positioned directly down-ice from these targets, with one pit placed in a straight line up-ice from where the green diamond was found, following the trail of indicator minerals.

Court win

The Dublin-based company is simultaneously exploring and advancing other assets in Finland. These include the Lahtojoki deposit, which would become the first diamond mine in the European Union if and when developed.

Karelian recently settled in court differences with the land owners close to Lahtojoki. It is now awaiting a decision from the country’s the National Land Survey to finish establishing the project boundaries. 

The company believes the Lahtojoki diamondiferous kimberlite pipe has the potential to become a profitable low strip ratio open pit diamond mine. 

The asset is said to contain high-quality white diamonds, as well as pink and other coloured diamonds, which can command prices up to 20 times that their colourless counterparts.

Located in Canada’s Northwest Territories, about 200 km south of the Arctic Circle, Diavik has become an integral part of the NWT economy, employing over 1,000 people and producing an average of 6-7 million carats of gem-quality diamonds annually.

Since entering production in 2003, the mine has outputted roughly 90 million carats of rough diamonds, making it one of the largest in Canada.

The offer of early termination to Diavik employees, says Rio Tinto, is a response to the challenges currently facing the diamond industry as the mine approaches the end of its life cycle.

“I can confirm that Diavik is looking at voluntary separation as part of our efforts to manage costs and rightsize our business given the relatively short runway to Diavik’s planned closure,” Matthew Breen, chief operating officer at Diavik, told Rapaport.

While the diamond mine is slated to close in the first quarter of 2026, Rio previously indicated that some workers will remain at the mine site until 2029 to support the closure and reclamation process.

Elsewhere in NWT, De Beers’ Gahcho Kué mine, about 280 km away from Yellowknife, is expected to follow Diavik and close around 2030.

A report earlier this year shared by research firm Impact Economics estimates that these NWT diamond mine closures could result in 1,500 jobs being lost and about 1,100 residents leaving the territory.

The average realized price for the diamonds Petra mined in the year ending June 30 was $116 per carat, down 17% from $139/ct last year, the company said.

Total on-mine cash costs in FY 2024 increased 11% compared to FY 2023, largely due to the ramp-up at Williamson mine in Tanzania, as well as cost inflation. 

A build-up of diamond inventory in FY 2023 of $34 million and a subsequent release in FY 2024 of $37 million contributed to adjusted mining and processing costs increasing from $202 million in 2023 to $296 million this year, Petra said.

The results, according to chief executive officer Richard Duffy, reflect the company’s successful response to weaker market conditions, which included strategic adjustments to reduce cash expenditure by $75 million. This was achieved by deferring capital expansion projects and implementing sustainable cost-reduction measures.

Duffy noted that that operational shift at its Finsch mine in South Africa also helped the bottom line. The mine transitioned from a 2.8 million tonnes per annum (Mtpa) operation to a more streamlined 2.2Mtpa, with increased focus on planning and maintenance.

Petra believes prices will stabilize through the end of calendar year 2024, helped by seasonal higher demand, with some improvement expected in CY 2025.

Despite market challenges, Petra remains confident in its FY 2025 outlook. The company’s South African mines, now accessing fresh ore from newly developed project areas, alongside the Williamson mine in Tanzania, which is operating at full production, are central to this optimism.

Petra’s efforts to smooth its capital expenditure profile, coupled with a $44 million annual reduction in operating costs, position it for free cash flow generation starting in FY 2025. This cost reduction includes $30 million in savings from its South African operations and $14 million from Williamson.

The diamond producer did not announce dividends, but said the board will review this decision by the end of fiscal year 2025.

Addressing market conditions, Duffy expects some the sector will see improvements in CY 2025 as increased discipline among diamond producers should help re-balance inventory levels across the supply chain.

Traceability and sustainability

Petra is advancing its technological capabilities, with a focus on traceability. The company is rolling out technology at its South African operations that will allow for the traceability of gem-quality diamonds over 0.5 carats, from mine to retail. This initiative is designed to offer consumers greater assurance regarding the provenance and sustainability of the diamonds they purchase.

“We believe traceability technologies will further differentiate natural diamonds by highlighting their rarity, uniqueness, and the benefits to stakeholders,” Duffy said. The technology will also emphasize Petra’s sustainability efforts, including social and community projects funded through diamond sales.

The 212.91 carat Type II white diamond was recovered on September 19^th, the company said on Monday. It is the thirteenth diamond over 100-carat unearthed this year at the operation, it noted.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. 

The Letšeng mine, owned 70% by Gem Diamonds, is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

The operation has a track record of producing large, exceptional white diamonds, which makes it the highest-dollar-per-carat kimberlite diamond mine in the world.

The South Asian nation, one of the world’s biggest importers of gold and an important processor and exporter of diamond jewelry, has about 175,000 businesses in this sector, but only some 9,500 are registered with the Gem and Jewellery Export Promotion Council that verifies proof of identity, the Financial Action Task Force said in its report Thursday.

“As a result of tax law provisions relating to cash threshold prohibition, the Dealers in Precious Metals and Stones (DPMS) sector falls outside the scope of preventive measures,” the FATF said. “There are doubts on the dissuasiveness of the penalty provisions.”

The findings follow a review of India’s financial system through a site visit in November 2023. The report concluded that while several changes — for instance mechanisms to monitor compliance with terrorist-financing rules — are starting to help, other guidelines including for the supervision of virtual asset service providers have been too recent to evaluate. FATF placed India in the ‘regular follow-up’ category.

The FATF places countries with weak terrorist financing and money laundering provisions on their ‘gray’ or ‘black’ list, which can restrict a country’s international borrowing capabilities. ‘Enhanced follow-up’ is a classification for countries that need major improvements, followed by ‘regular follow-up’ that allows countries to self-report.

India’s government in a briefing said just four nations among the Group of 20 are classified as ‘regular follow-up.’

The FATF task force that visited India also sought to understand the impact of India’s laws on non-profit organizations, Bloomberg News reported at the time. Some NGOs say Prime Minister Narendra Modi’s government has misused counter-terrorism laws over the years to target them.

The FATF said “it has not been demonstrated that the manner and frequency of the regular monitoring conducted, particularly by the Income Tax Department, is linked to the risk of terrorist-financing abuse, or targets non-profit organizations most vulnerable to terrorist-financing abuse.”

(By Preeti Soni)

The company inked a deal in April to acquire the Renard diamond mine and plant in northern Quebec with the goal of repurposing the existing infrastructure for processing ore from Adina. 

The lithium explorer and developer bought itself in August an extra three months to decide whether it would buy the past-producing mine, and today’s announcement suggests it would move in that direction.

Repurposing the existing dense media separation (DMS) and ore sorting facilities at Renard would be substantially cheaper than developing Adina from scratch, the scoping study shows. It would involve a relatively simple upgrade to use the DMS circuit to produce 282,000 tonnes per annum of 5.5% spodumene concentrate (38,000tpa lithium carbonate equivalent) over the mine life. 

“The ease of mining mineralized material at Adina via an initial low strip open pit along with the simple DMS flowsheet results in a competitive operating cost estimate, which optimization may improve further,” managing director Chris Evans said in the statement.

The executive noted the plant provides a significant commercial advantage compared to other proposed projects in Canada, highlighting that it would “continue to operate through market fluctuations and commodity cycles,” particularly given the current pricing challenges in the lithium market.

The scoping study indicates a post-tax net present value of $743 million, an internal rate of return of 43%, and a payback period of 1.8 years. Post-tax free cash flow over the mine’s life is estimated at $1.8 billion.

These figures are based on an average all-in sustaining cost of $693 per tonne and a forecasted spodumene concentrate (SC5.5) price of $1,375 per tonne. This is same estimate base used by its regional neighbour, Patriot Battery Metals (ASX: PMT)(TSX: PMET) at its flagship Shaakichiuwaanaan project, formerly known as Corvette.

Up to $1.1 billion in taxes

That project comes with a C$761 million ($560m) cost for a 2.5 million tonnes per annum (Mtpa) plant capable of producing 400,000 tonnes per annum (tpa) due to its high-grade ore.

Renard’s processing capacity sits at 2.2Mtpa with a potential run rate of 1.7Mtpa, at an average head grade of 1.24% and targeted recoveries of 67%. 

The Adina project has a resource of 77.9Mt grading 1.15%, of which 35.8Mt is included in the production target. 

Winsome is currently advancing the permitting for the asset and finalizing due diligence on Renard, where approximately C$900 million was invested in infrastructure between 2016 and 2023 before the diamond market collapsed and its previous owner, Stornoway Diamonds, went bankrupt.

The company says the Adina lithium project would create 500 jobs during operation and could potentially generate more than $7.5 billion in gross revenue.

It could also potentially generate $1.1 billion in corporate Quebec provincial and Canadian federal taxes, supporting the local communities, the Australian miner says.

Shares in Winsome Resources jumped on the news closing on Tuesday at A$0.52, which leave it with a market capitalization of A$112. 5 million ($76m). 

This is the sixth diamond weighing more than 1,000 carats to be recovered at the mine, and it comes only weeks after the recovery of a 2,492 carat diamond — the second-largest diamond ever recovered.

“This remarkable stone bears striking similarities to the 692-carat diamond announced in August 2023, which was polished by HB Antwerp and yielded polished diamonds that sold for in excess of $13 million,” the company said in a press release.

“This newly recovered 1,094-carat stone will also be polished by HB Antwerp, as part of the ongoing partnership between the two companies,” Lucara said.

The Karowe mine has produced several large diamonds in recent years, including the 1,758-carat Sewelô in 2019, the 1,109-carat Lesedi La Rona in 2015, and the 813-carat Constellation, also in 2015. The mine is also credited for having yielded Botswana’s largest fancy pink diamond to date, the Boitumelo.

Botswana is the world’s largest producer of diamonds, and the trade has transformed it into a middle-income nation.

Karowe remains one of the highest-margin diamond mines in the world, producing an average of 300,000 high-value carats each year.

Shares of Lucara rose 8% by 11:40 a.m EDT in Toronto. The miner has a market capitalization of C$221 million ($162 million).

Out of 710 metres drilled across six holes in July, the crew found a fancy yellow diamond about 25 metres below the last planned mine level. Drilling that targeted Misery’s main ore body confirmed the company’s belief that there’s a larger body at depth.

“We are pleased to announce the results from our current drilling program are indicating that the Misery pipe, which is a very high value ore source requiring almost zero development capital, is very likely to stay in production well past the original 2026 date,” Burgundy CEO Kim Truter said in a release on Monday.

The possible extension of Misery’s life comes as the territory’s three diamond mines face closures in the coming years. Rio Tinto’s (NYSE: RIO; LSE: RIO; ASX: RIO) Diavik mine is due to close in 2026, and De Beers’ Gahcho Kué mine is slated to run until 2028. While Ekati’s Sable open pit is expected to wind down this year, its Point Lake open pit could produce until 2029, according to company projections.

Burgundy acquired Ekati when it purchased its former owner, Arctic Canadian Diamond, in March 2023 for $136 million.

The mines, located hundreds of kilometres northeast of the capital Yellowknife are accessible only by winter road and airstrip.

Resource update in months

Drilling and bulk sampling of the main ore body’s prospective Southwest extension at Ekati is expected to start in the fourth quarter. Updated resource and reserves for Misery and the Southwest extension are expected in the next six months, with an official extended mine plan scheduled for release in the next year’s first quarter.

Ekati’s current mine plan is based on ore reserves of 15.8 million carats, Burgundy said. The company also developed a conceptual mine plan that could extend Ekati’s life towards 2040. It involves extending Misery, moving underground at Sable, developing underground and processing stockpiles at the Fox deposit, and potentially pursuing underwater remote mining at Point Lake.

Burgundy shares were down 7.6% to A$0.12 apiece on Tuesday in Sydney, valuing the company at A$170.5 million. Its shares traded in a 52-week range of A$0.12 to A$0.24.

The 126.21 carat Type II white diamond is the twelfth greater than 100-carat precious stone mined this year at the operation, the company said.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. 

The Letšeng mine, owned 70% by Gem Diamonds, is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

The operation has a track record of producing large, exceptional white diamonds, which makes it the highest-dollar-per-carat kimberlite diamond mine in the world.

The 122.2 carat Type II white diamond was recovered over the weekend and is the eleventh greater than 100-carat precious stone mined this year at the operation, the company said.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. 

The Letšeng mine, owned 70% by Gem Diamonds, is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

The operation has a track record of producing large, exceptional white diamonds, which makes it the highest-dollar-per-carat kimberlite diamond mine in the world.

ODC, established in 2012 as an independent window for the government to sell diamonds outside of the De Beers channel, currently gets 25% of its production from Debswana, a joint venture between Botswana and Anglo American’s De Beers.

In June last year Botswana and De Beers agreed a new 10-year diamond sales agreement, which will see ODC’s share of Debswana output rise to 30% initially and then increase gradually to 50% by the end of the deal, as the country seeks to get more revenue from its resources.

Following the maturity of a $140 million working capital facility in 2023, Serame said ODC has appointed Standard Chartered Bank to structure and coordinate a new $300 million syndicated revolving working capital facility.

ODC is currently only able to afford purchases up to $70 million using its own cash reserves, Serame told lawmakers as she sought approval for a $175 million government guarantee for the new credit facility.

“The $175 million government guarantee will crucially support ODC’s increased entitlement of 30% to Debswana’s rough supply, as well as assist the company in negotiating favourable rates in the local market on a new working capital facility,” Serame said.

The diamond industry is currently going through a market downturn which has seen sales at Debswana fall 49% in the first half of the year.

In October last year, ODC temporarily halted its rough sales as part of an industry wide drive to reduce the glut of inventory in the cutting and polishing industry caused by weaker global demand for jewellery.

The diamond industry is expected to start recovering from the impact of weak global demand during the fourth quarter of 2024, Serame said, and availability of the credit facility would put ODC in position to benefit from the recovery.

(By Brian Benza; Editing by Nelson Banya and Susan Fenton)

The diamond, recovered on August 23, is the tenth +100-carat stone the company has recovered so far in 2024.

In June, Gem Diamonds unearthed a 172.06-carat Type II white diamond at Letšeng, just days after another major find.

The Letšeng mine, owned 70% by Gem Diamonds, is known for the production of large, exceptional white diamonds, making it the highest-dollar-per-carat kimberlite diamond mine in the world.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure.

The Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

The two companies said in a joint statement they had agreed a long-term strategic collaboration to educate Indian consumers, build confidence in natural diamonds and promote their use.

Tanishq, a jewellery brand of Titan Co., will use diamond verification technology from De Beers, a unit of Anglo American, to provide assurance of the authenticity of its products to retail consumers, said Ajoy Chawla, CEO of Titan’s jewellery division.

Diamond jewellery sales in India have been rising rapidly at a time when China experienced a slowdown, said Sandrine Conseiller, CEO of De Beers Brands.

India is the world’s largest centre for cutting and polishing diamonds, accounting for nine out of 10 diamonds polished globally. But its cut and polished diamond exports plunged this year because of weak demand from China.

(By Rajendra Jadhav; Editing by David Holmes)

A Rio Tinto spokesperson said the company’s contingency plans to minimize the impact included trucking certain materials and products and increasing use of its own rail network.

Teck said it was looking to use alternative transportation, without specifying. A spokesperson added that the interruption of rail service is negative for its partners and customers in the critical minerals supply chain.

Canada’s top two railroads, Canadian National Railway and Canadian Pacific Kansas City locked out more than 9,000 unionized workers on Thursday, triggering an unprecedented rail stoppage that threatens to cause billions of dollars worth of economic damage and disrupt North American supply chains.

Rio Tinto’s Canadian operations include production of iron ore, aluminum and diamonds. Canadian operations contributed $800 million to the company’s total revenue of $26.8 billion in the first half of 2024.

The lockout will be mostly felt in the iron ore and aluminum businesses, Rio Tinto said. It owns around 100 kilometres (62 miles) of railway for its aluminum operations and 400 kilometres of rail network for iron ore.

Teck’s Canadian operations include copper and molybdenum production at its Highland Valley, British Columbia mine, as well as zinc and lead smelting and refining at Trail, British Columbia.

(By Divya Rajagopal and Ismail Shakil; Editing by Franklin Paul and Rod Nickel)

The update follows engineering work to steepen the walls of the open pit. This change will allow additional kimberlite to be captured within the mine plan and represents an increase of 2.7 million tonnes at 2.0 c/t or 5.5 million carats in the resource.

“This is an important update to the production profile of the Gahcho Kué mine,” said Mountain Province president and CEO Mark Wall. “The projected operational after-tax cash flow attributable to Mountain Province for the balance of the open pit life of mine plan of C$626 million demonstrates the value of the Gahcho Kué mine.”

As part of the latest work, the resource and reserve estimates have also been updated. The total probable reserves (including stockpiles) total 23.6 million tonnes grading 1.47 c/t and containing 34.6 million carats.

Using a cut-off size of 1.0 mm, the indicated resource is 24.7 million tonnes grading 1.57 c/t. containing 38.8 million carats. The inferred resource is 13.3 million tonnes at 1.79 c/t, containing 23.7 million carats. These numbers also reflect indicated material in stockpiles.

“The diamond market is considerably softer than the period when the previous 2022 technical report was completed, which creates upside opportunity to the economics should prices improve,” Wall added.

On a 100% basis, the Gahcho Kué mine is expected to produce 36.3 million carats from the beginning of 2024 to the end of the mine life. That is an 18% increased in recovered carats from the 43-101 report made in 2022.

The “epic” diamond, as Lucara put it, was detected and recovered by the company’s Mega Diamond Recovery (MDR) X-ray Transmission (XRT) technology, installed in 2017 to identify and preserve large, high-value stones.

Lucara did not reveal the diamond’s gem quality, but its size — larger than a tennis ball and several times heavier — is only second to the 3,106 carat Cullinan diamond. The iconic precious stone was found in neighbouring South Africa in 1905 and became part of the British crown jewels once cut and polished.

“We are ecstatic about the recovery of this extraordinary diamond,” William Lamb, president and chief executive of Lucara said in a statement. “This find not only showcases the remarkable potential of our Karowe mine, but also upholds our strategic investment in cutting-edge XRT technology”.

The Karowe mine has produced several large diamonds in recent years, including the 1,758-carat Sewelô in 2019, the 1,109-carat Lesedi La Rona in 2015, and the 813-carat Constellation, also in 2015. The mine is also credited for having yielded Botswana’s largest fancy pink diamond to date, the Boitumelo.

The Vancouver-based miner presented the yet-to-be-named diamond to Botswana’s President Mokgweetsi Masisi on Thursday, who touted the giant stone as the largest diamond found in more than 100 years. 

The African country is the world’s largest producer of diamonds and the trade has transformed it into a middle-income nation.

Karowe remains one of the highest-margin diamond mines in the world, producing an average of 300,000 high-value carats each year. 

The three largest diamonds found at the Karowe mine:

The sale is part of a comprehensive sweeping restructuring program triggered by a failed takeover attempt by its larger rival BHP (ASX, LON, NYSE: BHP). The explosion and subsequent fire at the company’s Grosvenor coal mine in Queensland rose questions about the process. Anglo continued as planned, enlisting the services of three top banks in July to assist in the sale.

Bids will be open for Anglo’s Grosvenor and Moranbah North mines, as well as three smaller mines in Queensland, according to two unnamed sources cited by Reuters.

Analysts predict that potential bidders may include Glencore (LON: GLEN), already a major supplier of Australian coal, Indonesian companies and Yancoal (ASX: YAL), which operates several coal mines in the country. 

Glencore recently abandoned plans to spin off its coal unit following discussions with shareholders, who pushed back against the move. The Swiss miner and commodities trader’s business has long been centred around the fossil fuel, and the prospect of abandoning it seemed improbable for a company built on the commodity.

Following the announcement, chief executive Gary Nagle said the company would even consider buying more steelmaking coal assets, given they were “fair priced” and located in “the right place”.

A group of Indonesian companies led by Golden Energy and Resources is reportedly considering making an offer. Delta Dunia Group, a Jakarta-listed company that operates the BUMA coal mining services business in Australia, announced in July its intention to expand through acquisitions.

China-backed Yancoal is another strong candidate to bid for Anglo’s assets. The miner said on Monday it was on the hunt for metallurgical coal deals in Australia, backed by A$1.5 billion ($1bn) in available funds. If successful, the move would position Yancoal as one of the nation’s top producers, capitalizing on rising demand across Asia.

Application for the mining concession over the company’s Lahtojoki deposit had previously been approved by TUKES, the Finnish mining authority, and the National Land Survey, on the order of TUKES, carried out the proceedings to establish the mine concessions.

Through this process, the Survey decided on a ground rental compensation totalling €162,815 to the land owners, which Karelian paid in cash by March 2023. However, the land owners appealed the decision with the Finnish Land Court, seeking a larger compensation as well as a change to the mine boundaries.

On Monday, the Finnish Land Court maintained the original decision on the mine boundary and rejected most of the claims brought by the land owners on the compensation. Three items were referred back
to the National Land Survey for review.

Finalization of the mine boundaries, said Karelian, represents “an essential step” in relation to the proposed development of the Lahtojoki diamond deposit. A valid mining concession would allow the project to proceed through development, subject to any relevant environmental assessments or requirements.

The company believes that the Lahtojoki diamondiferous kimberlite pipe has the potential to become a profitable low strip ratio open pit diamond mine.

The deposit is said to contain high-quality colourless gem diamonds, as well as pink diamonds and other coloured diamonds, which can command prices up to 20 times that of normal colourless gem diamonds, it noted.

Botswana is the world’s biggest diamond producer by value, meaning its economy has been disproportionately hit by a drop in demand for diamonds caused by a global economic slowdown.

Lefoko Moagi told parliament the weaker diamond market had also affected the company’s valuation, giving the country room to renegotiate.

“We will not be injecting more capital, but we will get more shares for the same amount proposed in 2023,” Moagi said. “Instead of the 24%, we will negotiate to get 49.9% for the same amount initially proposed.”

Finance ministry budget documents showed in February that the country had set aside 890 million pula ($65.95 million) for the 24% stake, valuing the Belgian company at about $275 million.

The HB Antwerp deal was announced during Botswana’s negotiations for a new sales contract with Anglo American’s diamond unit De Beers in March 2023.

As Botswana sought to increase its power to market its stones outside a decades-old agreement with De Beers, it said the HB Antwerp deal would strengthen its presence in the downstream diamond industry.

It includes supplying the trader with rough diamonds for five years through the state-owned Okavango Diamond Company (ODC).

($1 = 13.4953 pulas)

(By Brian Benza; Editing by Nelson Banya and Barbara Lewis)

The operation, which is Lucara’s flagship asset, generated $41.3 million in revenue, a 7% increase from the same period last year. Net profit more than doubled to $11.4 million from $5 million a year earlier.

Lucara’s deal with HB, which buys all stones over 10.8 carats found at Karowe, contributed to the overall increase in sales, the company said. The revenue from this agreement rose 15% year-on-year to $29.5 million.

Unlike most of its closest competitors, Lucara produces a significant amount of large, high-quality diamonds, for which the pricing has remained stable, compared to smaller, lower-quality diamonds, the Canadian miner said.

“These exceptional stones, coupled with Lucara’s innovative sales strategies, allow us to navigate current market conditions effectively,” chief executive William Lamb said in the statement.

From March to June, the company recovered 206 special diamonds, defined as rough diamonds weighing more than 10.8 carats, which represented 6.9% by weight of the total recovered carats from the processed ore. 

Significant diamond recoveries during the period included a 491-carat Type IIa diamond, a 225.6-carat Type IIa diamond, and a 109-carat Type IIa diamond.

Work on the underground expansion project at the iconic mine also progressed well during the quarter, Lucara said, with production from the new mine section expected in early 2028. 

The company noted the project would extend the life of the Karowe mine to 2040.

The diamond, recovered on August 3^rd, is the ninth greater than 100-carat precious stone recovered this year at the operation, the company said.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. Boart diamonds are stones of low quality that are used in powder form as an abrasive.

The Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

Diamond miners are going through a rough patch as US and Chinese demand for diamond jewellery continues to be weak and the popularity of cheaper laboratory grown diamonds continues to rise. 

In 2015, man-made diamonds had barely made an appearance as a competitor to natural diamonds. By last year, these stones  accounted for more than 10% of the global diamond jewelry market, according to industry specialist Paul Zimnisky.

The market values of small to medium diamond mining companies, including Canada’s Lucara (TSX: LUC), South Africa’s Petra (LON: PDL), and Gem Diamonds itself, are around $100 million or less. This is only about a third or a fourth of the price the large stones they aim to find may be worth.

The news comes as competitor Petra Diamonds postponed the sale of rough stones mined at its South African operations that would have been offered during the August/September event of the year, amid low demand.

The tender of diamonds from Petra’s Williamson mine in Tanzania will proceed as planned, the company said. It noted that this decision aimed to “support steps taken by major producers to restrict supply during this period of weaker demand.”

Rough diamond parcels from the miner’s South African operations, originally earmarked for sale as part of the first tender of fiscal year 2025, are now planned to be offered in the second tender, expected to close mid-October 2024.

Petra’s South African producing operations include the Cullinan and Finsch mines. 

“Our expectation is that supply discipline, together with the expected seasonally stronger demand as we head towards the festive season, will provide some pricing support later in the calendar year,” chief executive Richard Duffy said in the statement.

Petra had differed in June the majority of what would have been its sixth sale for its 2024 fiscal year to the August/September offering, or tender one of fiscal 2025.

The company said recent steps taken to improve its financial position have provided it with the ability to adjust the timing of its tenders based on market conditions.

Petra Diamonds plans to publish its preliminary results for fiscal 2024 on September 12.