Botswana Diamonds completes nine-hole drilling on Thorny River

Botswana Diamonds has completed its nine-hole drilling programme on the Thorny River property in South Africa. It said the objective of the hole drilling was to see if two kimberlite blows were one contiguous orebody, thus increasing the overall resource...

Today

Lifeline for small-scale chrome miners in Zim

Zimbabwe Zhongxin Smelting Company, a joint venture between a Chinese firm and the Zimbabwe Defence Forces, is constructing a $60 million smelting plant in Masvingo.

Today

Out of the deep blue: Buyers at Christie’s will have a chance to bid for Rolex Experimental Deep Sea Special N°1

Developed as a prototype for perfecting the Rolex diving watch concept, this Rolex Deep Sea Special N°1 was attached to the hull of Auguste Piccard’s bathyscaphe Trieste for the inaugural deep-sea trial to a depth of 3,150 meters in the Mediterranean...

Yesterday

Lucara unveils 1,175-ct rough diamond in New York – report

Lucara Diamond and manufacturer HB Antwerp unveiled a 1,175-carat diamond in New York City in a bid to attract investors. Reuters reports that the stone recovered at the Karowe mine, in Botswana last June would be on display for a week at the Whitby...

Yesterday

Asset-backed cryptocurrency gains momentum in China

Diamonds have not been a favourite with Chinese investors in the past because they tend to lose their resale value. But thanks to the emergence of cryptocurrency, this attitude towards diamonds as an unviable investment vehicle has changed.

Yesterday

Dilip Mehta: “Fundamentals for the diamond industry remain strong. However, immediate future will be unclear due to unpredictable economic outlook in the short term.”

30 july 2012

Dilip Mehta, CEO of Rosy Blue, a long-time DTC sightholder and one of the world’s largest diamond manufacturers having close relationships with all the major mining houses, including De Beers and ALROSA, described the current state of the diamond market in his interview to our correspondent in Brussels.

How did you work before and how do you work now?

There have been some remarkable macroeconomic changes impacting the diamond industry. With perceived shortages of rough supplies (in carats) the rough market overtook the polished way beyond what is sustainable. The impact is serious on the smaller sizes and especially in the better qualities. Similar issue exists in high colors and clarities larger sizes. This has impacted the entire industry leading to high stocks and liquidity issues.

Are there any prospects for the diamond market as a whole?

Fundamentals for the diamond industry remain strong. However, immediate future will be unclear due to unpredictable economic outlook in the short term.

What kind of development trends do you see for the diamond industry and market nowadays?

Due to high cost of doing business (China, India) retailers are under pressure and are downtrading rapidly due high polished prices.

Is it possible to forecast prices?

Forecasting prices is possible. One needs to measure the supply demand and above all liquidity. Based on that it is possible to forecast. That said, market moods plays an important role.

What impact on the market and business is produced by new diamond miners (Zimbabwe, etc.)?

There has been not so much of new production of late with exception of Zimbabwe. Due to the nature of diamonds coming out from Zim, the lower color larger goods are under pressure. Interestingly, those diamonds are selling due to increasing demand in the lower color and qualities.

What are the prospects for the sightholder community as a sales system?

Sightholder system almost guarantees supply and that has been fairly consistent. However, the biggest flaw in the system is the lack of price agreement.

How do you feel about the transfer of DTC to Botswana?

Besides some logistical challenges, it seems that it will be business as usual.

Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished