Friday, February 03, 2012

(NEWZIMBABWE, INDIA TIMES) De Beers hit by cheaper Zim diamonds

COMMENT - It's all about the diamonds.

De Beers hit by cheaper Zim diamonds
02/02/2012 00:00:00
by indiatimes.com

PRICES of rough diamonds from De Beers and Russia-based Alrosa last month took a knock in India’s diamond city of Surat, easing up to 10 percent, especially in the low range category, because of competition from Zimbabwe stones.

In addition, the low range diamond boxes of the leading giant diamond mining companies were selling at discounted rates by up to 25 percent in Surat and Mumbai. Industry leaders say Zimbabwe diamonds are about 50 percent cheaper than those from other sources.

Zimbabwe diamonds started to flow into the world's biggest diamond cutting and polishing hub in Surat from November 2011 after the international diamond regulatory body Kimberly Process (KP) allowed their exports from the controversial Marange fields.

[If the Eastern DRC is not 'controversial', and remember no one is calling DRC diamonds 'blood diamonds', even with a death toll of an estimated 6 to 8 million people, you know that trying to classify Zimbabwe's diamonds as such is purely political. And this article shows why - control of the diamond market. - MrK]


About 30 percent of the diamond pieces currently manufactured in Surat are Zimbabwe stones.

Aniruddha Lidbide, a diamond analyst said: "The giant mining companies seem to be under price and sale pressure since November 2011, when the Zimbabwe goods started to enter India.

“India is the biggest consumer of low-range goods and thus the prices are likely to decrease further in 2012."


De Beers, Alrosa, Rio Tinto and BHP Billiton account for 70 percent of the total production of rough diamonds in the world.

[De Beers and Rio Tinto are both owned by the Rothschild banking dynasty. BHP Billiton does not seem to be connected to them, but is the world's biggest miner. For most of the 20th century, De Beers was owned jointly by the Oppenheimer family. According to Nicky Oppenheimer, the former owner of De Beers, on the BEE: "This was the first major ownership change for De Beers in over a century. Of the legislation Oppenheimer said: "De Beers is here to make a profit, but we must benefit the people and communities where we operate." Local people have to benefit? Try and sell that to the Anglo-American bankers who live thousands of miles away and who are only in it for profit maximisation and especially industry control. Add in a global diamond market share loss of 55% (from 95% of the global market to 40% today), and the Oppenheimers are now nearly completely out of De Beers, forced out by Anglo American's Cynthia Carroll. See the article Carats To Carrots - De Beers No Longer Jewel In Crown. - MrK]


In 2010, the Kimberley Process Certification Scheme (KPCS) estimated the world production of rough diamonds at 133 million carats.

De Beers has a share of 26 percent by volume and 35 percent by value, Alrosa has 28 percent share by volume and 25 percent by value, Rio Tinto has 11 percent share by volume and 10 percent by value and BHP Billiton has a 2 percent share by volume.

In 2010-11, India imported rough diamonds worth $11 billion, out of which more than 50 percent were of low-range quality. Gems and jewellery exports for 2010-11 jumped 47% to $43 billion from $29.4 billion in the previous year.

According the diamond industry report 2011, Zimbabwe's diamond output would continue to grow.

The country has a stock pile of 4.5 million carats of diamonds valued at $4-5 billion.

Currently four diamond mining firms operate in the Chiadzwa fields - Marange Resources, Mbada Diamonds, Anjin and Diamond Mining Corporation. The country stands to earn more than US $2 billion per year from the three Marange mines that have been permitted to sell so far.

Sanjay Kothari of Gems and Jewellery Export Promotion Council added: "The quality of Zimbabwe diamonds is different from those offered by DTC, Alrosa and even Rio Tinto.

“It is true that Indians have benefited from Zimbabwe goods, but this will not trigger any reduction in the rough prices in the long run."

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