Articles and News

INDUSTRY NEWS: HARRY WINSTON BUYS ANOTHER MINE; LEO SCHACHTER TO BE HONORED, ZIM DIAMONDS GET KP OK November 14, 2012 (0 comments)

Harry Winston Gets Deeper Into Mining; Buys BHP’s Diamond Business

Yellowknife, NWT, Canada—Überluxe jeweler Harry Winston is going deeper into its vertical mine-to-market strategy, with an agreement to buy the Ekati Diamond Mine from BHP Billiton for $500 million. BHP Billiton earlier this year announced its intention to exit the diamond business. Selling off the Ekati mine, as well as its sorting and sales facilities in both Yellowknife and Antwerp, Belgium, to Harry Winston, accomplishes that goal.

Harry Winston already owns 40% of the Diavik mine near Yellowknife. Rio Tinto, which owns the other 60% of Diavik, also announced earlier this year that it would like to exit the diamond business.

Read more in JCK and National Jeweler.

Image: Diamond tassel necklace from Harry Winston.

 

Zimbabwe Declared Fully Compliant with KP Requirements

Victoria Falls, Zimbabwe--The Zimbabwe Diamond Conference 2012 concluded Tuesday after two days of talks, presentations and discussions from 480 government officials and ministers of mining from African diamond producing countries and international diamond industry leaders. The conference focused on resolving the outstanding obstacles that restrict rough diamonds from Zimbabwe to downstream markets. 

During the event, the Kimberley Process Certification System chair, Gillian Milovanovic, reaffirmed that Zimbabwe is fully KP compliant, but stressed that the Kimberley Process itself needs to be updated. The document’s original goals were to prevent rough diamonds from becoming a source of revenue for rebels seeking to overthrow legitimate governments, and to prevent a loss of consumer confidence in diamonds owing to their potential association with blood and violence. 

The KP has been very successful in preventing rough diamonds that fund rebel groups from entering global supply chains, which in turn diminished the conflicts in those regions and helped maintain diamonds’ positive reputation.

Milovanovic emphasized that consumers are or will be looking for more, and that the core definition of "conflict diamond" therefore needs to be updated to ensure that rough diamonds are free from armed conflict and armed violence. The current KP certification is not designed to address human rights, financial transparency, economic development, or other important questions though they clearly impact the diamond sector, and the KP and its members can and should make further progress on issues like these as well as conflict.

Zimbabwe has been a central focus of the global diamond industry. The country may hold in excess of 25% of the world's diamond deposits, with prospective areas still to be explored, but human rights violations in its Marange diamond fields put its diamonds on the banned list in both the United States and the European Union. Eli Izhakoff, president of the World Diamond Council, announced that pending WDC board approval he will try to engage both the United States Treasury and the European Community to lift sanctions on diamonds from Zimbabwe to preserve the integrity of the KP system.

 

At the Zimbabwe Diamond Conference 2012, from left: Ahmed Bin Sulayim, executive chairman of the DMCC; Thabo Mbeki, former minister of South Africa; and Robert Mugabe, president of Zimbabwe.  

 

LEO SCHACHTER, TIFFANY, TO BE HONORED WITH “GOOD” AWARDS

New York, NY--Global luxury jeweler Tiffany & Co. and Leo Schachter Diamonds will be honored for global leadership in helping empower people in Africa, at the second annual GOOD Awards on January 10, 2013.

The GOOD Awards, established by the Diamond Empowerment Fund in 2012, are the highest awards to recognize individuals and corporations in the diamond and jewelry industry for outstanding leadership in the areas of good corporate citizenship, sustainability, and promoting opportunity in Africa.

Tiffany & Co. has been in the forefront of promoting business practices and programs that benefit communities in which diamonds are sourced. Tiffany’s work in Botswana and other diamond producing countries highlights one of the many ways the company demonstrates accountability through best business practices resulting in employment, infrastructure improvements, and ultimately the empowerment of people in that region.

Leo Schachter Diamonds was one of the first diamond companies to establish a cutting factory in Botswana, employing hundreds of local Batswana. Additionally, Elliot Tannenbaum, principal of Leo Schachter Diamonds, in partnership with the government of Botswana, helped to establish the Botswana Top Achievers Program, a DEF beneficiary, that funds top students from the nation to study at the university of their choice worldwide.

Additional honorees will be announced soon. For more information on tickets, journal ads and sponsorship packages please visit http://www.goodawards.org.

 

GIA Announces New Governor, Bids Farewell to Outgoing Members

Carlsbad, CA—The GIA (Gemological Institute of America) board of governors welcomed Lisa Locklear as its newest member during the Institute’s November board meeting, and bid farewell to retiring governors Fred Levinger, Roland Naftule and Steve Relyea.

Locklear is senior vice president and chief financial officer of Ingram Micro, Americas. She is responsible for leading the finance organization and supporting business operations, including credit, accounting, reporting, planning, and strategy for its $18 billion North America and Latin America regions.

Her career in finance spans more than 28 years, including public accounting with Price Waterhouse (now PwC) in Orange County, CA, and financial reporting, planning and operational finance and analysis with The Walt Disney Company’s consumer products and theme parks divisions. 

“We are fortunate to have Lisa join the GIA board of governors,” said Susan Jacques, board chair and president and CEO of Borsheims Fine Jewelry and Gifts in Omaha, NE.  “She is a wonderful addition to our diverse board of global leaders and her expertise in finance is a perfect fit as GIA builds for a global future on the firm foundation of its 81-year history.  We look forward to ensuring the public trust in gems and jewelry around the world.”

 

Swiss Watch Exports to U.S. Rise 13%

Geneva, Switzerland—Exports of Swiss watches to the United States grew 13% during the first nine months of 2012, according to figures from the Federation of the Swiss Watch Industry FH. The United States remains number two behind Hong Kong as the Swiss watch industry’s top export market.

To date, exports rose another percentage point to post a 14% year-over-year increase. Read more in this article in National Jeweler.