Monthly Archives: September 2014


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Police appeal after diamond ring worth $577,000 stolen – Alexandria

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Sunday, 28 September 2014 04:06:38 PM

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Police are appealing for public assistance after a unique diamond ring worth more than half a million dollars was stolen from an auction centre at Alexandria yesterday.

Between 12.30pm and 1.25pm (Saturday 27 September 2014), a pink argyle and white diamond ring valued at $577,000 was stolen from a display counter at an auction centre on Ralph Street.

An attendant discovered the ring missing and contacted police.

Officers from Redfern Local Area Command commenced an investigation into the theft and are appealing for any witnesses to come forward.

It’s estimated about 100 people walked through the auction centre during the time it was stolen.

Each of the diamonds in the ring is laser inscribed with a serial number.

Police are urging anyone with information about this incident to call Crime Stoppers on 1800 333 000 or use the Crime Stoppers online reporting page: Information you provide will be treated in the strictest of confidence. We remind people they should not report crime information via our Facebook and Twitter pages.

A unique pink Argyle and white diamond ring valued at $577,000 has been stolen from an auction centre in Sydney, Australia.

The piece of jewellery ring was snatched from a display counter around noon on Saturday and police have been unable to find it so far.

Each of the diamonds in the ring is laser inscribed with a serial number, New South West Police said in a statement Sunday.

Henry Sapiecha


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Around 2,500 carats of rough pink ceylon sapphire
A 4.53 carat heart shaped pink diamond
A .82carat emerald cut red diamond
2-3,000 carats of cut oval calibrated garnet around .6ct pieces
A .5 ct treated pink RBC diamond
A.68 ct RBC diamond white


stolen gems poster-1.docx-1These are just some of diamonds  & gems that  have been stolen @ the Fraser Coast Qld Australia.Nov-2013 There were some diamonds-Large pink heart shaped one of 4.52 carats A 1.8ct radiant cut pink  diamond  some other diamonds not shown on the list.  Also 2,500 carats of ceylon pink sapphire roughs, a few thousand carats of calibrated garnets around  .6 ct each & oval in cut Watch out for the above,  ID the seller and report to police immediately

Detective Adam Quemard Ph-0741285366 Ref-1201152662 AUSTRALIA
If anybody rings you even to sell you loose stones  get their name & phone number also 

Henry M-0411645533 
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US diamond market to shine despite China, India growth: De Beers

HONG KONG: The United States is likely to remain the world’s largest market for diamonds for the next 15 years despite a growing appetite for the gems from China and India, leading producer De Beers said today.

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China has the fastest growing demand, jumping to a share of about 15 per cent of the world’s diamond market from less than three per cent in 2003.

But it is not expected to overtake the US market’s 40 per cent share for more more than a decade, De Beers CEO Philippe Mellier said.

“China and India, the engine for growth, these two big markets clearly could be as big as the US in the next may be 15 years,” said Mellier, who was in Hong Kong for the Jewellery and Gem Fair.

“For China to go up to 40 per cent share of the world market, it’s still some ways to go,” Mellier said, adding that he expects the Chinese market to grow more than 10 per cent per annum for “many more years”.

De Beers said China’s anti-corruption drive, which has hurt demand for luxury goods, would not affect the diamond industry.

“I think our business is less impacted by that compared to others,” Stephen Lussier, CEO of De Beers Forevermark said, with diamonds usually used at weddings and other “emotional events” in life.

Global diamond jewellery sales were around $79 billion in 2013, up 3.0 per cent compared to 2012, according to De Beers’ first Diamond Insight Report.

Sales are expected to grow in the long-term helped by recovery in the US economy as well as the growth of middle-class in developing markets of China and India.

The company had earlier said it expects “good to very good” second quarter results in India, which has seen increasing demand for the gems.

Founded in 1888 in South Africa, De Beers last year reported $1 billion in operating profit — more than double that of 2012.

Henry Sapiecha

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Term contract pricing in the diamond market- Paying for supply security


————————PRICING METHODS———————–

A term contract for a commodity is a long term agreement where material is transferred at intervals over the contract duration for a certain price. The price paid can take many forms; fixed price, tiered price, formula price etc. A common pricing form is an indexed price where the price of each delivery references a pricing index. This is typically the corresponding spot market for the type of material being contracted. Various adjustments take place surrounding quality aspects and timing with a quotational period (average of month/quarter + 1/2/3 months of delivery).

————————PRICE DISCOVERY———————–

The essence of a term contract is that the price is being set in the spot market. Now this poses a question for price discovery mechanism – is the spot market an accurate reflection of the total market preferences?

When we look at market efficiency and try to see if the market is thick (enough buyers and sellers to transact), we typically think of liquidity – are enough transactions going through the spot market exchange in order for the prices to be fair? However, this doesn’t go far enough. To be sure the market is efficiently pricing we need to ensure that the right market participants are transacting in the spot market.

If we were to find the equilibrium for the market as a whole (i.e. all transactions through spot), all demand preferences would be ordered from the highest willingness to pay to the lowest and the supply preferences ordered from the lowest cost to the highest. If participants are split into term and spot markets would arrive at the same price as the total market if the highest willingness to pay buyers and lowest cost sellers entered into the term contract. These market participants hold preferences that always lead to transactions regardless of the price. This then leaves the more marginal players in the spot market to arrive at the clearing price and quantity.

Ins4Luckily, the incentives are such that market participants act in this way and self-select. Those with high willingness to pay want to enter into term contracts to ensure security of supply and avoid volume risk. Those with the

Luckily, the incentives are such that market participants act in this way and self-select. Those with high willingness to pay want to enter into term contracts to ensure security of supply and avoid volume risk. Those with the lower willingness to pay would not want to lose their flexibility and so will be less inclined to enter long term agreements.

Inefficient outcomes can occur when term contract buyers are receiving material but have a willingness to pay less than the market clearing rate. In this case the buyer would want to leave the long term contract and be replaced by the high bidders in the spot market.  This process might take some time, but as an intermediary measure, material could be resold (subject to resale clauses etc.) in the spot market in order to increase quantities available here and reduce clearing price.



If buyers are willing to reveal their preferences and self-select as being a high willingness to pay by requesting a term contract then we should expect some interesting games surrounding how sellers to use this information. Producers could start charging a premium for the privilege. Any price greater than the market clearing would incentivise high willingness buyers to shift over to the spot market under the expectation that they would achieve the market clearing price and avoid paying the premium.

Buyers would be unlikely to entice over any low willingness buyers into term contracts because of the perverse price effects (market clearing price would increase because it would be set by the high willingness buyers in the spot market). The market would probably shift onto a full spot exchange with the same clearing prices as before any attempt to charge a premium.

However, the fact is that risk is reduced for the buyer and seller under a term contract. Quantities are known in advance and with certainty. There is also a market failure risk with unknown timing problems where supply may be thin for nothing other than mismatches between when producers and consumers enter bids and offers the exchange. This will have positive value and suggest a premium would be paid for by the weaker bargaining party.


A good way to allocate term contract volumes to those that are willing to pay the most are to use an auction approach in order to help reveal true preferences. Obviously careful planning of the auction would be necessary in order to avoid collusion between buyers. Self-selection could also be used to allocate. If term contracts were offered with an estimated premium attached then only those with the highest willingness to pay would take them up.

Henry Sapiecha

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Evidence from commodity markets that have implemented a competitive auction of term contracts have realised a c3% premium relative to the underlying spot index.

Namibia moves foward with plans to sell diamonds without De Beers

A diamond polisher works on a gem in a diamond-polishing factory at NamCot Diamonds in Windhoek, Namibia image

The government of Namibia confirmed Friday it is going ahead with its announced plans of setting up a company that will separately sell part of the diamonds mined by Namdeb Diamond Corp., the joint-venture it owns equally with Anglo American’s (LON:AAL) De Beers.

Speaking at the World Diamond Congress meeting last month, the country’s Minister of Mines and Energy Isak Katali said the idea is to give diamond dealers and manufacturers the opportunity to buy directly from locals, Rapaport reported.

The project follows the lead of neighbouring Botswana, which began trading 13% of the country’s gems in December, and it depends on a deal with De Beers.

Currently the precious rocks mined in Namibia by Namdeb, the 50-50 joint venture between the government and Anglo’s unit, are sent to De Beers sorting facilities in Botswana and mixed with other De Beers goods. After that, only 10% of the total sent is returned to Namibia, where they are sold through the Namibia Diamond Trading Company (NDTC).

Namibia is renowned for its gem quality placer diamonds that occur along the Orange River as well as onshore and offshore along its coastline

Henry Sapiecha

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De Beers to change its diamond sales model

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Global diamond giant De Beers Group announced Tuesday it is implementing an updated model for the allocation of rough diamonds by its primary distribution arm, Global Sightholder Sales (GSS), for the March 2015 to March 2018 contractual period.

The fresh model, said the Anglo American (LON:AAL) unit, involves a new method for determining GSS’s rough diamond customer base, with a simplified, compliance and demand-based customer qualification process being introduced.

The world’s largest diamond miner by market value also said it will adopt a more flexible sales approach, through which non sightholder diamond businesses would have opportunities to buy rough diamonds from GSS.

“The more rigorous financial and existing ethical compliance requirements will also help to reinforce third-party confidence in the strength and transparency of GSS’s customer base,” De Beers Group CEO Philippe Mellier said in the statement.

This is not the first innovation to rough diamonds sales De Beers introduces this year. In January, the firm said it has not ruled out an expansion of its Victor diamond mine in Canada. In March, it revealed it was looking to tap into the new markets, landing later a new diamond exploration license in Angola, the world’s fourth largest producer of diamonds by value, and sixth by volume.

Around 90% of De Beers’ total rough diamond availability by value is sold through GSS.

Henry Sapiecha

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New wave of diamond fever sweeps Canada’s Northwest Territories

The famous Northern Lights are definitively not the only attraction in Canada’s Northwest Territories image

The famous Northern Lights are definitively not the only attraction in Canada’s Northwest Territories

SouthernEra Resources, which headed up the exploration team, reported 226 diamonds in a 581-kilogram sample including 62 macro diamonds.

The property also hosts four additional kimberlite indicator mineral trains whose kimberlite sources have yet to be identified, according to the company.

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Diamond deposits, in the words of one senior geologist, are like pigeons. Where you find one, you’re likely to find an entire flock.

That’s the guiding logic behind a new wave of diamond mine development and claim staking in the Slave Craton in Northwest Territories. The NWT already serves as host to some of the world’s richest diamond mines, starting with Ekati and Diavik, followed by Snap Lake, all in the central corridor of the Slave Craton.

Next to follow is the Gahcho Kue Diamond Project southeast of the prolific Ekati and Diavik diamond mines. When it begins production in 2016, Gahcho Kue is reputed to become one of the largest and richest new diamond mines in the world. This $700 million project has a combined probable mineral reserve estimated at 55.5 million contained carats. De Beers Canada owns 51 per cent of Gahcho Kue and is the operator of the proposed mine. Mountain Province Diamonds, which discovered the Gahcho Kue diamond resource, owns 49 per cent.

Next to Gahcho Kue is the Kennady North Project with four confirmed diamond pipes. Two of the pipes returned diamond sample grades two to three times greater per tonne than Gahcho Kue, as reported by the company.

Circling in the vicinity of Gahcho Kue are projects led by successful veterans of the original 1990’s Canadian diamond rush: Randy Turner, CEO of Canterra Minerals; Buddy Doyle, exploration director and vice-president of Margaret Lake; and Patrick Evans, president and CEO of Kennady Diamonds.

Turner discovered the Snap Lake diamond mine. Evans led SouthernEra Resources when it performed much of the foundational geological research in the Slave Craton area two decades ago. Doyle led the team that discovered Diavik. He also was involved in exploration at one of two properties in the area acquired this year by Prima Diamond Corp. (PMD.V).

In mineral exploration, “closeology” — proximity to a mineral resource — can mean a lot, or a little. For a gold deposit, it’s usually irrelevant. For diamonds it’s a whole different story.

“The best place to seek a high-grade diamond deposit is close to one that has already been identified,” explains Dr. Roger Morton, professor emeritus in the Department of Earth and Atmospheric Sciences at University of Alberta.

Prima Diamond Corp. — a comparative newcomer to the diamond exploration business — won the staking rush to acquire the highly prized Munn Lake property north of Gahcho Kue. Its Godspeed Lake property is immediately adjacent to Gahcho Kue on the south and has barely been explored.

“Diamonds tend to be like pigeons. They go around in flocks,” Morton says, pointing to Gahcho Kue as the spark for surging interest in the area. “In the Munn Lake area, for example, there is a kimberlite which is the host rock for diamonds.”

Interest in the southern Slave Craton took another jump this summer when tonnage estimates in Kennady’s Kelvin-Faraday kimberlite corridor increased by 30 per cent, to 10 million tonnes.

With its two properties, Prima is well positioned to take advantage of the excitement. The 14,000-hectare Munn Lake is 40 kilometres northwest of Gahcho Kue and 40 km east of the Snap Lake diamond mine. It has been the site of $6 million worth of exploration, leading to the discovery more than a decade ago of a diamondiferous kimberlite, and huge kimberlite boulders resting at surface some as large as 25 meters in diameter.


Jody Dahrouge, president of Dahrouge Geological Consulting, staked the properties for Prima.

“Our first read of the Munn Lake kimberlite is that it’s a couple-of-metres-wide dike, similar to the Snap Lake Diamond mine,” Dahrouge explains. “Then there are a few boulders sitting down-ice that are 25 metres in diameter. How can you squeeze a 25-metre-wide boulder from a two-metre-wide body? It seems to indicate another kimberlite source bigger than the already identified Munn Lake Sill. It might be from a blow, it might be from a pipe located elsewhere.”

Dahrouge notes that at Godspeed, “huge swaths of this property have never seen a sample, particularly the southern half. The northern half, the area closest to Gahcho Kue, has really seen very limited sampling. So it’s an unexplored jewel, yet to be cracked, in the middle of a kimberlite cluster, which is fortunate for us.”

“Diamond exploration is all about closeology and we are in a great area code,” Prima President and CEO Robert Bick comments. “Not only is Gahcho Kue a world class diamond resource but within a circumference of 100 kilometres the area is dotted with diamondiferous kimberlites.”

Bick noted that the market for diamonds, unlike that for gold and base metal commodities, remains strong. Globally, production has dropped 26 per cent compared to 2005, and newly affluent members of the middle class in China, India and Indonesia are helping to push year-over-year growth in demand for diamonds by 5.1 per cent compounded annually.

One advantage that Prima has over SouthernEra is the advances in geological survey technology over the last 15 years. Godspeed is considered an excellent exploration candidate for using airborne gravity surveys.

Air gravity gradiometry studies would confirm and generate additional targets for future drilling on both Munn and Godspeed Lake.

Neil McCallum, a project geologist with Dahrouge, uses words such as “straightforward” and “simple” to describe the opportunity for Prima.

“The closeology is an important consideration for Godspeed, considering its proximity to Gahcho Kue,” McCallum says. “As for Munn Lake, we’ve got diamondiferous kimberlites and boulders and really nice looking targets based on indicator sampling. Prima has the right real estate in a prolific area. This is clearly a very prospective diamond play.”

Henry Sapiecha

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This is the $10 million-plus white diamond just found in South Africa

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Shares in Petra Diamonds (LON:PDL) continued to soar Wednesday after the miner revealed late Tuesday it had found a 232.08-carat white diamond at its Cullinan mine in South Africa, which four analysts predict could fetch between $10 million to $16 million.

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The London-listed company, increasingly famous for its exceptional recent discoveries, saw its stock climbing over 10% since the announcement, closing at a high of 195.5 pence Wednesday.

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The new stone is a D colour Type II diamond of “exceptional size and clarity,” and it has become Petra’s largest white diamond since the 507-carat Cullinan Heritage found in 2009 at the same mine. That rough white diamond was given a “flawless” clarity grade and fetched $35.3 million, a record price for the company.

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The Cullinan mine, near Pretoria, is famous for the discovery of the largest diamond ever recovered. That one was made in 1905 when miners unearthed a 3,106 carat diamond, which was later cut to form the Great Star of Africa and the Lesser Star of Africa, set in the Crown Jewels of Britain.

Images courtesy of Petra Diamonds.

Henry Sapiecha

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$6m diamond goes missing during labour dispute

Ekati Spirit sold for $6m in 2011. Image BHP Billiton

The Ekati Spirit was sold by BHP Billiton in 2011 and at the time described as “the most valuable stone in the mine’s 13-year history.” BHP has since exited the diamond business.

The Namibian government is in the process of changing its arrangement with Namdeb and NDTC and could set up its own selling organization.

Namdeb, the second largest employer in Namibia, sends the bulk of its production to De Beers sorting facilities in neighbouring Botswana, the world’s number one diamond producer, where it is mixed with other De Beers stones.

After that, only 10% of the total sent is returned to Namibia, where they are sold through NDTC.

Namibia has the richest known marine diamond deposits in the world, estimated at more than 80 million carats.

They represent approximately 64% of Namdeb’s total diamond production of 1.8 million carats and 90% of its diamond resources.

Police in Namibia are hunting for a 78-carat diamond after the gem went missing during a recent strike by 1,500 workers of the Namibia Diamond

NDTC, like the mining firm Namdeb, is a 50-50 joint venture between Anglo American’s De Beers unit and the Namibian government with a history dating back to the 1920s.

Bloomberg reports the value of the stone will “depend on the quality and size of the polished stones that can be cut from it,” but points to a 78-carat diamond mined from the Ekati mine in Canada’s north which sold for $6 million.

Henry Sapiecha

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Gem Diamonds: South Africa..No impact on Letseng from Lesotho crisis

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Gem Diamonds, owners of the Letseng mine in Lesotho, released a statement on Monday saying it did not anticipate any impact on operations from the political crisis in the tiny land-locked nation.

Prime Minister Thomas Thabane fled Lesotho for South Africa on Saturday after the military in Lesotho disarmed police in the capital, Maseru, in what the prime minister called a military coup.

Talks between the different factions mediated by South African President Jacob Zuma appeared to have some success with Lesotho’s leaders agreeing to a roadmap with a “clear timeline” to re-open parliament.

London-listed Gem Diamonds Limited said it “has seen media reports of army activity in Maseru, Lesotho but, at this stage, our management in Lesotho report that Maseru is calm and there is no disruption whatsoever at the company’s Letseng mine which is situated some 4 hours from Maseru in the mountains.”

“It is not anticipated that there will be any impact upon operations at Letseng nor upon any of the company’s sales and marketing operations in respect of the Letseng production,” according to the company.

Gem Diamonds owns 70% of the Letseng mine and the rest belongs to the Lesotho government.

Since it took control in 2006 the mine the company has produced four of the top 20 largest white gem quality diamonds on record.

Image: The Letšeng Legacy is currently ranked as the 16th largest rough white diamond ever recovered. Courtesy of Gem Diamonds

Henry Sapiecha

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