GOLDNET.MARKET - “We want and are working to provide business with the opportunity to develop a lot of activity areas”

Today, almost all jewellery companies have their own wholesale websites, online stores, and social media pages. But a year ago, GOLDNET.MARKET, the first jewellery wholesale marketplace appeared in Russia, a new effective tool for the jewellery market...

20 september 2021

Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

06 september 2021

There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

30 august 2021

The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

23 august 2021

African Diamonds Pushes to Expedite Botswana Mine Launch

01 april 2009

African Diamonds is pushing to launch production at its AK6 mine in Botswana by the end of 2010, ahead of the schedule set by De Beers, its senior partner on the project, RAPAPORT reported. The U.K.-based company reported Tuesday that it has presented a mining proposal to its partners, under which construction of the mine would start in 2009, and production would begin by the end of 2010. Under the mining license, the companies have until April 9, 2011, to commence production.
African Diamonds spokespersons said that the company presented the plan in response to the difficulty the joint venture partners faced in raising the $260 million in financing they sought to develop the mine. “The objective of this proposal is to mine money and not diamonds,” said John Teeling, chairman of African Diamonds. The company explained in the statement that it believes that operating a 2 million metric ton (2.2 million ton) a year mine, “costing less than $40 million, with operating costs of under $10 a [metric ton], is viable in the present hostile climate.” In the early years, AK6 will produce more than 450,000 carats of diamonds, African Diamonds noted.
The mine is owned by Boteti Exploration Ltd., a joint venture company in which De Beers holds a 70.27 percent stake, with African Diamonds owning a 28.38 percent share and Wati Ventures the remaining 1.35 percent. Boteti received a mining license for AK6 from the Botswana government in October 2008. During negotiations for the license, the two larger stakeholders had a dispute regarding work on the project; African Diamonds accused De Beers of delaying the development of the mine. While African Diamonds stated that it was in favor of building the mine “as quickly as possible,” De Beers claimed it was not economically viable to develop a mine while Botswana was experiencing power shortages, which are expected to continue through 2010.
Since then, the mining giant has dramatically cut production in response to the decline in demand for rough diamonds. Des Kilalea, RBC Capital Markets analyst, explained in a note about the partnership that "for De Beers there is a larger question: Should it be investing in a new mine when it has effectively mothballed its major producers Jwaneng and Orapa (both in Botswana) in response to depressed diamond markets and a need to conserve cash?" Kilalea added that it makes sense for African Diamonds to pursue a proposal to get AK6 into production, as it represents the company's prime asset and driver of its share value.
Teeling noted the different objectives of the partners Tuesday in his statement accompanying the company's interim results. “What suits the privately owned De Beers does not always coincide with the needs of a small publicly traded company,” he said. “The current credit environment has led to delays and postponement of many projects. African Diamonds has reacted to the situation by producing a mining plan that is viable in the current circumstances.” African Diamonds saw its losses increase by 193 percent during the six months ending December 31, 2008, posting a net loss of $1.1 million (GBP 775,000) for the period.