Diamond Market Report
Trading activity firm with both polished and rough prices on the rise. Major producers trying to maintain stable rough pricing with DTC boxes still presenting the best value on the market. Nonetheless there are no signs of rough diamond prices easing with some market experts alluding to speculative intra-dealer transactions being the source of continued rising rough prices. We caution the re-emergence of speculative trading activity and advise prudence especially when dealing in rough at the moment. Polished markets showing solid activity with good U.S. demand for round and square 0.75ct-2.00ct, F-I color, VS-SI clarity goods and shortages supporting higher prices. Asian markets remain strong with more and more marketing focus on Chinese market. More stable macro-economic environment providing good impetus for continued positive market sentiment.
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Zimbabwe Government Newspaper: Country Ready to Start Selling Diamonds
The Herald Newspaper, published by the government of Zimbabwe, says that the country is ‘set to start selling its diamonds after complying with the recommendations by Kimberley Process monitor Abbey Chikane’.
Abbey Chikane visited Zimbabwe during the first week of March on a fact-finding mission as the Kimberley Process Monitor on Zimbabwe in response to an invitation from the government of Zimbabwe.
Mines and Mining Development Secretary Thankful Musukutwa says his ministry had invited Abbey Chikane again since the recommendations he made during his early March visit have been complied with.
"We have invited the KP monitor. We want him to come and certify our diamonds because we are ready. His first visit was exploratory and he made some recommendations which we feel have been complied with. In our invitation we indicated we were ready,” explains Musukutwa.
Musukutwa says that both Mbada Holdings and Canadile Miners, the two firms which have partnered the Zimbabwe Mining Development Corporation in the exploration of diamonds at Chiadzwa, are ready for Kimberley Process requirements, adding that “we are now just awaiting the go-ahead from the monitor in compliance with the KP certification scheme”.
Mbada and Canadile last month told a Parliamentary Portfolio Committee on Mines and Energy that they were 100 percent compliant with KP requirements, adding that the lack of KP certification was affecting their operations, reports the Herald.
African Diamonds Raising US$14.6 Million
Botswana diamond company African Diamonds plc has undertaken a conditional placing of ordinary shares to raise approximately £9.6 million (US$14.6 million) before expenses. African Diamonds' directors and families will invest, in aggregate, £1 million in the placing (US$1.5 million).
The proceeds of the placing will be used in three ways. Firstly, to increase African Diamonds' share in AK6 to 40%; secondly, to fund African Diamonds' portion of the early works budget on AK6; and thirdly, for general working capital and exploration.
The early works program includes orders for long-lead time capital equipment and mine site development. Exploration will be focused on African Diamonds' 100% owned AK8, AK9 and BK5 projects, all located in the vicinity of AK6 in Botswana.
John Teeling, Chairman, commented: "I am delighted by the support African Diamonds has received from a significant number of institutional investors. The funds raised will be used to increase our stake in the AK6 diamond project to 40%, to fund an early works program on the mine, and to explore promising diamond targets on our Botswana acreage."
The mine at AK6 is expected to come on stream in late 2011.
Alrosa VP Details Development Prospects of South Yakutian Iron Ore Deposits
Sergey Pushkin, Vice-President of Russian diamond company Alrosa, made a presentation to the 8th International China Iron Ore Conference 2010 in Beijing, on the prospects of a cluster of iron ore deposits in South Yakutia.
Currently diamond giant Alrosa holds licenses for the development of the Tayozhnoye, Desovskoye, Tarynnakhskoye and Gorkitskoye deposits. The total commercial reserves of the 4 deposits are assessed at 4.8 billion tons of iron ore.
According to experts, iron ore resources in South Yakutia have been underexplored and may be in excess of 20 billion tons, which would make this region one of the largest iron ore producing centers in the world.
The development of the four deposits is a part of a government program aimed at creating a large industrial region with well-developed infrastructure.
Alrosa, assisted by independent Russian and international experts, has begun work to prepare a detailed feasibility study with a view to develop the deposits and build mining and processing facilities there.
Alrosa is looking for a well-established international or Russian company with experience in the development of iron ore assets and free steel making capacities that might be interested in becoming a strategic investor into the equity of OJSC MMC Timir.
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Provision of independent valuation services for: governments of diamond producing countries, mining companies, financial institutions and other interested parties.
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