Articles and News

Rio Tinto Keeping Diamonds After All

New York, NY—In a reversal of its 2012 decision to put its four diamond properties up for sale, mining giant Rio Tinto has now decided to keep them. After a strategically reviewing a range of options for the diamond division—including a possible divestiture—the company decided the global market for diamonds justifies staying in the business. In an interview with U.K. newspaper The Telegraph, new CEO Sam Walsh pronounced himself in no hurry to divest the company of diamonds and, indeed, Rio Tinto Diamonds & Minerals chief executive Alan Davies said, "The medium to long-term market fundamentals for diamonds remain robust, fuelled by growing demand for luxury goods in Asia and continuing strong demand in North America. We have valuable, high-quality diamonds businesses that are well positioned to capitalize on the positive market outlook.” The best path to generate maximum value for shareholders is to retain these businesses, he added.

Rio Tinto is the world’s second largest mining company, with interests in a variety of minerals in addition to diamonds. It owns the Argyle Mine in Australia, which is famous for its über-luxurious pinks, but also provides the lion’s share of commercial grade diamonds used in mass-market jewelry. It also owns a 60% share in the Diavik Mine in Canada, a 78% share in the Murowa mine in Zimbabwe, and the Bunder Project, a mine currently in development in Madhya Pradesh, India.

Rio Tinto in Las Vegas unveiled the next phase of its “Diamonds With a Story” initiative, designed to both emphasize that diamonds are an item of inherent value and not a commodity, and resonate with Millennial consumers who care about the origin and sustainability of their purchases. The new program comes with training and marketing materials for jewelers.

Consumer Confidence Surges Again; Has Recovery Finally Reached Main Street?

Merrick, NY—The Conference Board’s consumer confidence index rose 7.1 points in June, following a 5.3 point rise in May. The latest figures bring the Index to 81.4, though with the caveat that the survey was completed prior to the recent stock market selloff.  Still, the figures suggest that the economic recovery may finally be reaching Main Street, as consumers are more optimistic about both current and future economic conditions and more have indicated plans to purchase a home or automobile or take a vacation.

According to a Wells Fargo economic commentary, consumer confidence is one of the best measures of inflection points in the economy because it is a good gauge of attitudes about the broader economy. Consumers are more upbeat about current economic conditions—the “present situation” index has risen 22.6 points over the past year, and is now at the highest level since the recession ended.

But there’s a caveat: when it comes to attitudes about business and employment, the improvements are coming more from fewer negative attitudes than more positive attitudes. Still, says Wells Fargo, it’s more good news than bad, and attitudes are clearly improving, and, in separate reports, said both new home sales rose more than expected and there were more signs of business resilience in May.

DDI To Participate In Ethics Seminar At JA Show

New York, NY--Ngomesia Mayer-Kechom, manager of International Programs for the Diamond Development Initiative (DDI), will participate in the panel session “Living up to Diamonds” at the JA New York Summer show on Monday, July 29 from 1:00 – 2:00 p.m. at the Jacob Javits Convention Center.

Other VIP participants include David Bonaparte, CEO of Jewelers of America, Dr. Benjamin Chavis, senior strategic advisor to the Diamond Empowerment Fund, Cecilia Gardner, CEO of the Jewelers Vigilance Committee, Martin Rapaport, chairman of the Rapaport Group and Whitney Sielaff, publisher and editorial director of National Jeweler.  During the session, attendees will learn about important projects that help jewelers support diamond communities, source responsibly and protect consumer confidence in diamonds.

“I’m proud to be a part of the solution to the problems facing the most marginalized segment of the jewelry industry; the artisanal diamond mining sector,” says Mayer-Kechom. “Participating in panel sessions like the one at JA NY assists DDI in sharing our important message with the US jewelry industry.”

To learn more about DDI and the Friends of DDI program, visit booth #3761. Membership in the Friends of DDI conveys to consumers a jeweler’s concern for diamond workers who labor under challenging artisanal mining conditions. The DDI Retailers Friendship Kit program includes a certificate of recognition, counter displays, information postcards, and gift box insert cards imprinted with the donor’s name, which can be distributed to customers and constituents.