MARCH - APRIL - 2014

Vol - 3 Issue 3, 2014

Hong Kong Show Concludes on Upbeat Note New Corporate Office of

Perry Impex Pvt. Ltd. in The Capital, Mumbai

Say 'NO’ to Ivory

Jewellery…

FOREVERMARK CELEBRATES

1,000,000 INSCRIPTIONS

Mumbai Diamond Firms Planning to Move to Surat

COVER COURTESY :

Strong Gold Demand in China in Next Four Years

EDITORIAL DESK

New Clouds of Trouble over Marange Diamonds

I

t appears that all is not well on front of the Marange diamonds yet as the issue has been reopened by the Western countries even after suffering repeated setbacks by them in the Kimberley Process (KP) summits during recent past.

Media reports suggest that the Western countries aim to use Organization for Economic Co-operation and Development (OECD) to pressurize the global industry not to source Marange diamonds. It is also learned that the European Union (EU), which revoked its illegal sanctions on the Zimbabwe Mining Development Corporation (ZMDC) recently, is now once again keen to redefine 'blood diamonds' so that Zimbabwe's stones fall within the new definition.

Zimbabwe's Mines and Mining Development Secretary Professor Francis Gudyanga says, “European countries under the 34-member strong OECD which is also known as the Paris Club are trying hard to have Zimbabwe's diamonds classified as conflict diamonds. We along with other diamond producing countries would resist any such moves.”

Western countries have a specific strategy in their minds of using the OECD so that they can put the subject beyond reach of both the KP and its many African members. Sniffing this move in advance, South Africa (which is a member of the KP) has already written a protest letter to the Secretary General of the OECD about the matter, arguing that the Western countries cannot promulgate new rules for the global diamond industry without taking into confidence the producer nations who may not be members of the OECD but are in the majority and genuine owners of the diamonds.

Zimbabwe's President Mr. Robert Mugabe who recently boycotted the EUAfrica Summit says, “The West has been adopting double standards in dealing with African and Third World countries. Earlier, business of the KP was running without any problems but the moment Zimbabwe unearthed diamonds, they started opposing to Zimbabwe and now they want to impede and prohibit the selling of its diamonds. They want to ruin us with their evil thoughts. They would not like to give up. Once defeated in one area, they speedily move on to another."

It would be quite interesting to note here that the EU had withdrawn sanctions inflicted on Marange diamonds at the behest of the Antwerp World Diamond Centre (AWDC) and earlier the KP had also lifted its ban against dealing in Marange diamonds. But the Parliament of Belgium recently adopted a motion for a resolution stating, “…the KP has failed in battling the prevalence of conflict diamonds.” This apparently shows a rift among the European countries as far as the issue of Marange diamonds is concerned.

On the other hand, shrewd President Mugabe has successfully explored new markets recently in United Arab Emirates (UAE) and China. This can be an indication that the Zimbabwean government may dump AWDC in Belgium in favor of the Dubai Diamond Exchange (DDE) or the Shanghai Diamond Exchange (SDE) in China. Mr. Mugabe had visited Dubai recently for setting up an embassy in the UAE. Sources close to the government say that the embassy would have no major diplomatic function other than overseeing the Zimbabwe's diamond business.

A battle-line has once again been drawn between Western countries and Zimbabwe. A fierce diplomatic war is expected to be fought among the 'vested interest' parties with new clouds of trouble looming large over the Marange diamonds.

European countries under the 34-member strong OECD which is also known as the Paris Club are trying hard to have Zimbabwe's diamonds classified as conflict diamonds. We along with other diamond producing countries would resist any such moves.

Prashant Rathod editor@minestomarket.net Mines to Market | March-April’ 2014

09

CONTENT

INDUSTRY WATCH Fresh Bid to Ban Zimbabwe Diamonds

11

Diamond Supplies Fading Away Fast

15

Diamond Trade Bleeds the Poor

17

Synthetics a major cause for concern for Botswana

19

Strong gold demand in China in next four years

20

COVER STORY Say 'NO' to Ivory Jewellery…

22

ISRAEL SECTION

25

ISRAEL'S U.S. / INT'L DIAMOND WEEK BEGINS WITH FESTIVITIES Rainbow Collection Wows Diamond Week Attendees 400+ Diamond Buyers Fill Israeli Bourse Trading Hall Vol: 3, Issue 3, 2014

Price : Rs. 100/-

UK SECTION

27

Bering revealed as headline sponsor of inaugural Buyers Power List at Jewellery & Watch London Lucy Q Designs to unveil new pieces at Jewellery & Watch London

SHORT NEWS Owner, Publisher, Printer & Editor Prashant Bharatkumar Rathod

UK Correspondent : Jayant Raniga

Regd. Office : M/s. Blue Diamond Media Amba Ashish, Punit Society, Navdurga 30 Feet Road, Sorathiya Wadi, Rajkot - 360002

Cell : +91-9328223900 Mumbai : +91-9833023900

29

Joyalukkas Jewellery inaugurates new mall of Joy, in Thrissur Mumbai Diamond Firms Planning to Move to Surat Indian Gems & Jewellery Trade Unhappy With RBI's Monetary Policy India's Gem &Jewellery Exports Decline by 11% in 2013-14 Gold Smuggling Arrests Jump 750% YoY in India

EVENT Shree Ramkrishna Export Celebrated 50 years of its Founder Mr. Govind Dholakia's Journey into Diamond Industry 8th Kisna Annual Conference held at The Hari Krishna Campus, Surat

37 39

TRADE SHOW Hong Kong Show Concludes on Upbeat Note

40

Jewellery & Gem Fair Europe 2014 closes with positive results Dates for the 2015 show announced

41

NEW LAUNCH

45

Entice introduces Kathaa- 'The story of Jewels’ New Corporate Office of Perry Impex Pvt. Ltd. in The Capital, Mumbai Prosperity blooms with Kama Jewellery this Akshaya Trithiya Email : editor@minestomarket.com prashant022@gmail.com Web:www.minestomarket.net

PROFILE The Best Diamond Manufacturers across the Globe : Samarth Diamond

FOREVER CELEBRATION Mines to Market Magazine is printed and published by Prashant Rathod at Blue Diamond Media.

10

FOREVERMARK CELEBRATES 1,000,000 INSCRIPTIONS

EDUCATION EDGE

49 50 51

GIA Trains 300 Gem & Jewellery Professionals Globally Recognised GIA Programme Successfully Debuts in Chennai

Mines to Market | March-April’ 2014

INDUSTRY WATCH

The battle is not over. There are still situations meant to disallow Zimbabwe diamonds from trading. But we are there for you. We ask Western powers that as they make rules on African minerals, they cannot make them without Africa getting involved.

Fresh Bid to Ban Zimbabwe Diamonds

W

estern countries have launched a fresh bid to block the sale of Zimbabwe diamonds using the Organization for Economic Co-operation and Development, sources close to the Dubai Diamond industry have confided. The sources warned that Zimbabwe's standoff with the West over the exploitation of its diamonds is far from over, even after the West suffered repeated setbacks in past Kimberly Process summits.

Western efforts, the sources said, now aimed at using the 34-member strong OECD to pressure the jewellery industry worldwide from sourcing diamonds from targeted countries, principally Zimbabwe.

"The battle is not over. There are still situations meant to disallow Zimbabwe diamonds from trading. But we are there for you. We ask Western powers that as they make rules on African minerals, they cannot make them without Africa getting involved," the source said.

The OECD was founded in 1960 when 20 countries originally signed its founding convention. All of the founding nations are Western, mostly European, with the exception of America.

Since then, another 14 have joined, with only three -- Chile, Turkey and Mexico -coming close to being Third World and part of the KPCS process membership.

Apart from Israel, other newly admitted members come from the former Eastern bloc countries, whose admission is linked to the West's larger geo-strategic calculation.

Mines to Market | March-April’ 2014

From 2007, talks with BRICS countries (Brazil, Russia, China, India and South Africa) and Indonesia have been dragging on and on around the OECD's maze of membership rules.

Since then, these countries have only been offered a programme of "enhanced engagement", well short of actual membership. Contrastively, the KPCS has 81 countries which translate to 54 participants.

The EU as a bloc counts as a single participant, with the majority of KPCS members coming from diamond producing countries of Africa.

The West's new strategy of using the OECD puts the matter beyond both the Kimberly process, and its many African producers of diamond who are not members of the OECD. Well-grounded reports indicate that South Africa which is a member of the KPCS has already raised a protest letter with the Secretary General of the OECD on the matter, arguing the West cannot raise new rules for the world diamond industry without the involvement of producer nations who whilst not belonging to the OECD, are in the majority and real owners of the diamond resources.

Reacting to this disclosure, the President hit out at the West's double standards in dealing with African and Third World countries. He said: "All along the Kimberly Process was running without problems. But the moment Zimbabwe discovered diamonds, then those opposed to Zimbabwe wanted to inhibit and prohibit the selling of her diamonds....

Those with their evil thoughts sought to ruin us. They will still want to ruin processes which benefit our country. They don't give up. You defeat them in one area, they move on to another."

He noted that the new rules and regulations which the west was developing were meant to inhibit the marketing of Zimbabwe's valuable mineral commodities. He adverted to recent divisions within the EU over the sale of Zimbabwean diamonds where some EU countries, led by Belgium, opposed further sanctions on Zimbabwe diamonds.

"Belgium won the fight, to the chagrin and disappointment of Britain, and we have conducted two auctions there", President Mugabe said.

Commenting for the first time on Zimbabwe's recent boycott of the EUAfrica Summit, the President lightheartedly noted: "In Belgium they do much more than the selling of diamonds.

Recently they also hosted the EU-Africa Summit and initially, President Mugabe of Zimbabwe which produces diamonds was not invited. Later, they changed heart and he got invited conditionally: he could come, but not with his wife. But I am married and my priest said you are now one (pointing at the First Lady). The priest further said what God has put together, let no man put asunder! I could not see how I could go there and leave behind this other me!"

To laughter and in an apostrophic address to the Europeans, he added: "You who fought so successfully for our diamonds to

11

INDUSTRY WATCH come (to Belgium), why didn't you fight for Mugabe to come there too? ... I am not married to diamonds, mind you. I bought her (First Lady) that ring; she bought me this one. It has one little diamond. She said that is what she could afford, but added: "it does not matter as long as I have your heart. It is a big diamond."'

The President was accompanied on the tour by the First Lady, Amai Grace Mugabe, his daughter Bona and her husband Simba Chikore, Zimbabwe's Kuwait-based Ambassador Marongwe, who is also accredited to the United Arab Emirates, and senior Government officials who include the Secretary for Foreign Affairs Ambassador Joey Bimha.

Also in attendance were Dr Robert Mhlanga of Mbada Diamonds and Mr Abu-Ali Imad of DMC. The tour which was meant to familiarize the President with diamond auction processes, lasted the whole afternoon. The President also hinted that Zimbabwe would soon engage the UAE authorities towards easing travel arrangements between the two countries.

The European Union, which begrudgingly lifted its illegal sanctions on the Zimbabwe Mining Development Corporation recently, is now on a spirited drive to redefine blood diamonds so that Zimbabwe's gems fall within that category.

The Kimberley Process Certification Scheme, an international diamond regulatory body, certified Zimbabwe's diamonds as clean.

12

EU's New Move:

Alternate Markets:

The European Union, which begrudgingly lifted its illegal sanctions on the Zimbabwe Mining Development Corporation recently, is now on a spirited drive to redefine blood diamonds so that Zimbabwe's gems fall within that category. The Kimberley Process Certification Scheme, an international diamond regulatory body, certified Zimbabwe's diamonds as clean.

Mines and Mining Development Secretary Professor Francis Gudyanga told The Herald on Monday that European countries under the Organization for Economic Co-operation and Development -- also known as the Paris Club -- were keen to have Zimbabwe's gems classified as conflict diamonds.

Prof Gudyanga, who sits on the Dubai Diamond Exchange, said Zimbabwe and other diamond producing countries were going to resist such moves. He said the issue would come under intense discussion at the DDE meeting in Dubai next week.

ZIMBABWE is hunting for alternative markets for its diamonds amid indications government may dump Antwerp World Diamond Centre in Belgium in favour of the Dubai Diamond Exchange in the United Arab Emirates (UAE), or the Shanghai Diamond Exchange in China.

President Robert Mugabe -- whose wife Grace was recently barred by the European Union from travelling to the EU-African summit in Belgium -- has taken a personal interest in the matter.

Mugabe has been in Dubai since last week where he is touring the Dubai Diamond Exchange Centre as well as setting up an embassy in the UAE. Insiders say the embassy will have no major diplomatic task other than overseeing the sale of the country's diamonds.

Mugabe's trip has raised eyebrows, particularly because he left the country without reporters although he normally travels with state media journalists when on official government business. This fuelled speculation Mugabe -accompanied by his wife, his daughter Bona and her husband Simba, Mbada Diamonds chairman Dr Robert Mhlanga, Abu-Ali Imad of Diamond Mining Company and Foreign Affairs secretary Joey Bimha -- was also conducting personal deals, hence the decision to leave behind scribes.

However, Mugabe's spokesman, George Charamba, told Zimbabwe Independent yesterday that the president had visited the Arab country to seek a "personal understanding" of the dynamics of the diamond industry. He said the visit followed a cabinet decision to try different diamond markets to establish where the country's gems would fetch greater value.

"We are gaining experience in respect of an area which is very murky and complex," he said.

Charamba said the president had gone through an educational process of the diamond industry from production, processing and the marketing.

He justified the exclusion of journalists, saying the trip was essentially a learning visit.

"We wanted an environment to optimize on learning," he said. "We met with the owners of the Diamond Exchange Centre, we met the administrators of the auction system and thirdly we met buyers. The idea was to meet all the players and get a complete understanding."

"We are going to attend the Dubai Diamond Exchange board meeting on the 8th of April, 2014 where we are going to discuss a counter to the Organization for Economic Co-operation and Development," Prof Gudyanga said.

"They want to put additional conditions to the KPCS to define conflict diamonds and we are resisting that."

The European Union lifted sanctions on ZMDC last year following intense pressure from some of its members in the diamond trade. Zimbabwe subsequently conducted its maiden diamond sale at the Antwerp bourse in Belgium. The country is now exploring new diamond markets in the Middle East. Zimbabwe, Prof Gudyanga said, would propose to the DDE board to host a diamond conference here in November.

Mines to Market | March-April’ 2014

INDUSTRY WATCH Charamba said it was important for the president to get firsthand information of the industry so that he is capacitated with knowledge to help him when he gets briefings from officials. He said the background would also assist in interactions with producers and the market.

Charamba said Mugabe's visit to Dubai had nothing to do with the disagreements with the EU. He said the visit was arranged before the First Lady was denied a visa adding the president would have passed through Dubai on his way to Belgium, if he had attended the EUAfrica summit last week.

He however said the president did talk about his row with the EU officials in a light-hearted manner, suggesting that the Europeans were just after Zimbabwe's diamonds but did not care about the relationship they had with the country's leaders.

"The president asked, 'You who fought so successfully for our diamonds to come to Belgium, why didn't you fight for Mugabe to go there too'," said Charamba.

Mugabe's visited is however being viewed with suspicion both at home and abroad, particularly in Antwerp. There has always been speculation that most of the revenue from diamonds mined at Chiadzwa has not been finding its way to Treasury but instead to the pockets of few top officials who have benefitted the most.

Diamond industry players believe Harare could have been attracted to Dubai because it is possible to market diamonds there in the murky underworld. EU's head of delegation in Zimbabwe, Ambassador Aldo Dell'Ariccia also suggested that Dubai would allow Zimbabwean officials "opacity in the transactions" which will not be obtained from Antwerp, although he expressed hope that the country would still continue selling its diamonds in Europe.

"In the two auction sales of diamonds that took place in Antwerp, there was full information about the quality and quantity of the stones, the price fetched and therefore the amount of funds that will go to Zimbabwean coffers," Dell'Ariccia said.

"The auction in Dubai took place last week and at this stage I still do not know how much was sold and how much will go to the Zimbabwean fiscus. Dubai is a fiscal paradise; there is certain opacity in the transactions. It is possible the auction Mines to Market | March-April’ 2014

can be transparent but it is also possible that it may not be."

Charamba said the average prices fetched in Dubai were higher than those at Antwerp.

He said Mugabe would use his visit to explore the possibility of increasing interaction between Zimbabwe and UAE. A visa regime exists between the two countries, but Mugabe wants travel requirements eased to allow for easier movement of people between the two countries given that Emirates Airways is making six trips between Harare and Dubai per week.

Presidential spokesman George Charamba

Resolution against KP: A motion for a resolution that assumes the Kimberley Process Certification Scheme (KPCS) – the supervisory body established to ensure conflict diamonds from entering the mainstream rough diamond market – has failed in combating the prevalence of conflict diamonds was recently passed by the Belgium Parliament.

This motion claims that the KPCS has failed in its purpose and does not provide markets with the assurance that the diamonds are not conflict diamonds.

This is partly related to the fact that the KPCS has allowed Zimbabwe to reexport goods from the Marange diamond fields, which, according to the KPCS, are 100% 'conflict free', but which according to several nongovernmental organizations (NGOs), are illegitimate.

Dubai Diamond Exchange chairperson Peter Meeus, a former Antwerp World Diamond Centre director-general, tells Mining Weekly that he strongly disagrees with this.

“I believe that NGOs are calling for additional efforts to be put in place to ensure that assumed human rights violations related to the trade, manufacture or mining of diamonds do not take place.”

This should be regarded as a request by the Belgium government to the European Com-mission (EC) to have additional supply chain controls put in place that go beyond what is currently provided for in the KPCS. The impact of such a resolution and the call for additional supply chain controls on the diamond industry going forward may see the implementation of tighter legislative measures by the EC, which

may, in turn, negatively impact the global trade of diamonds.

“Indirectly, these measures could further impact on trade as they may result in an informal embargo against certain countries where there are assumed human rights violations,” says Meeus.

In 2014, diamonds are the most strictly checked raw materials in the world. With the exception of uranium, no other raw materials are so strictly controlled and observed as rough diamonds. More than 99.8% of all diamonds produced are certified by the KPCS. Problem countries, such as the Central African Republic (CAR), Côte d'Ivoire, Guinea and Venezuela, do not even represent 0.2% of world production.

Already in April 2013, when the problems started in the CAR, the KPCS – of which Meeus is a part of on behalf of the UAE – took measures to ensure that the country could not export illegal diamonds.

In this way, the KPCS was the first and only system to ensure, in a very short time, that rebels do not get the opportunity to finance insurgencies through the sale of rough diamonds.

Despite this, NGOs have started to criticize the KPCS for failing to address the issue of human rights abuses in the world's diamond fields.

13

INDUSTRY WATCH

Mugabe's Ire:

Robert Mugabe

Belgium for years pushed for the targeted sanctions to be removed so that the AWDC could trade with Zimbabwe, regardless of the human rights abuses and corruption reported at the country's Chiadzwa diamond fields in Marange.

14

The decision by Europe to refuse Grace Mugabe a visa so she could travel to Brussels for the EU-AU summit held recently has invited her husband's ire.

Speaking Wednesday while on a visit to Dubai, where Zimbabwe has decided to sell its diamonds, President Robert Mugabe praised the owners of the Dubai Diamond Exchange whom he claimed are sympathetic to Zimbabwe.

"Here we have the same Third World people with sympathies for us. You do not have the evil heart of Europe," the Staterun Herald quoted Mugabe as saying.

Mugabe has in the past been accused of un-presidential behaviour for using hate speech against perceived opponents or enemies. Mugabe, who was in Dubai together with Grace, went on to accuse the European Union of trying to separate him from his wife and said he couldn't have attended the Summit without her.

In an indirect address to the Brusselsbased Antwerp World Diamond Centre (AWDC), which lobbied for the lifting of the restrictive measures so that ZANU PF could sell the country's diamonds, Mugabe said the body should have fought for Grace's travel.

Belgium for years pushed for the targeted sanctions to be removed so that the AWDC could trade with Zimbabwe, regardless of the human rights abuses and corruption reported at the country's Chiadzwa diamond fields in Marange.

Lobbying started in 2010, when a delegation from the AWDC toured the Zim mining operations and gave a glowing appraisal of the situation.

That visit came barely two years after an estimated 200 diamonds panners were murdered in late 2008, following the government launch of a military led crackdown at the Chiadzwa alluvial fields.

Ordinary Zimbabweans have not benefitted from the discovery of diamonds in the country, estimated to be the world's fourth largest reserves.

Zimbabwe reportedly earned $29.3 million from its latest diamond sale in Dubai, but very little of this, if any at all, is likely to flow into national coffers.

There are suggestions that Mugabe is moving to eliminate other firms involved in diamond mining in the Chiadzwa fields, so that a company linked to him will be the sole operator. n

Mines to Market | March-April’ 2014

INDUSTRY WATCH

Diamond Supplies Fading Away Fast

D

Diamond deposits are “pretty tricky to find”.

“They're not large deposits compared to the deposits for other commodities. Even once you find one, there's no guarantee it's diamondiferous and even if it is, there's no guarantee that it's economic”

Edward Sterck, analyst at BMO Capital Markets

Mines to Market | March-April’ 2014

iamonds may be forever, but supplies are fading fast. After two fruitless decades of diamond exploration, mining companies are now scraping the bottom of their existing assets, facing a seemingly inevitable decline in production from 2019.

China's middle classes are demanding soaring numbers of the precious stones, and jewellery makers are increasingly desperate to gain access to a rough diamond source.

Rio Tinto's first auctions of the year, held in Antwerp and Israel last month, saw unprecedented levels of interest and, as diamond demand starts to outpace supply over the next five years, competition will become more fierce.

Only around 30 significant diamond mines are in production, according to Petra Diamonds, and a tier-one mine hasn't been found since the 1990s, despite billions spent on exploration.

Edward Sterck, analyst at BMO Capital Markets, says that diamond deposits are “pretty tricky to find”.

“They're not large deposits compared to the deposits for other commodities. Even once you find one, there's no guarantee it's diamondiferous and even if it is, there's no guarantee that it's economic”, he says.

De Beers estimates that the success rate for finding an economic diamondiferous mine is around 1pc.

As the major existing diamond mines mature past their production peaks, more companies are converting open-pit mines into underground resources in an attempt to find the last available stones.

But underground mines produce fewer diamonds and have higher operating costs.

“The existing mines in Russia and Canada have been moving from open-pit operations to underground production.

But new projects are not going to make up for the declining production from the big production centres in Russia and Botswana and so on”, says Sterck.

De Beers is converting its Venetia open pit mine in South Africa into an underground

mine, a process that will take almost a decade. The mine makes up 40pc of South Africa's diamond production, and the conversion is expected to extend the mine's lifespan by 25 years to 2046.

Stephen Lussier, executive director of De Beers, says that the company is expanding to simply maintain production, but keeping worldwide diamond production levels stable is unlikely.

“Many of the world's diamond mines aren't getting younger, and as they get older, they tend to get less productive. We need to find new things in order to simply maintain current production”, he says.

Throughout the industry, he says, production will fall unless someone makes a major discovery — which is “always possible, but not probable”.

If you have a scale retail operation, the one thing you're concerned about is not so much the price you pay but the ability to access supply on a regular basis which you need to feed your retail machine

Forevermark CEO Stephen Lussier

15

INDUSTRY WATCH “It looks like the world is getting to the end of that period of diamond production expansion,” says Lussier.

Bain and Company's Global Diamond Industry Report 2013 predicts that production will start to decline by 2019, falling by 1.9pc a year.

The prospective drop in supply means that jewellery makers are working to build closer ties with producers in order to have greater assurance of supply.

“If you have a scale retail operation, the one thing you're concerned about is not so much the price you pay but the ability to access supply on a regular basis which you need to feed your retail machine”, says Lussier.

The inevitable result of this scramble for diamonds is a rising price.

Analyst Edward Sterck estimates that diamond prices are already up 7pc this year and he predicts that the price will continue to rise by 5pc to 7pc per annum for the next few years. When diamond production begins to fall, price rises could become even more aggressive.

“We produced about the same number of carats as the year before, but the strong prices really increased our earnings”, said Clifford Elphick, chief executive of Gem Diamonds, which saw a 15.5pc rise in profits before tax last year.

“There simply isn't any new mine, any new discovery, coming on-stream. The net effect of that is, as populations grow, as people get more wealthy and have more disposable income and as the consumer market in China grows, you have a situation where prices will rise for the foreseeable future,” says Elphick.

Although diamond production is set to fall, the demand from countries with a growing middle class is rising fast.

The international diamond market has shifted dramatically over the past decade, with demand from China making up an increasingly large share of global demand.

In 2000, the whole of Asia made up 8pc of global diamond jewellery sales, while in 2012 China and Hong Kong alone made up 13pc, with the expectation that this will rise to 18pc by 2017. Bain's 2013 diamond report found that the stones have strong spiritual resonance in China, where diamonds are associated with eternity and high status. And the country's affluent middle class is predicted to grow by 60pc, or 200m, to a total of more than 500m over the next six years.

16

There are so few diamond mines worldwide that there are inherently high barriers to enter the market. But there are signs that China is starting to look at ways to encourage its diamond industry and I think it's likely they could look at diamond mining assets in the future, as they have no significant producing diamond mines in country

Clifford Elphick Chief Executive of Gem Diamonds

I first went to China in 1988 and I've seen the transformation and the huge number of stores opening in not just the first-tier cities, but also the second and third and fourth-tier cities.

In response to these trends, Chow Tai Fook, a jewellery chain in China with double the revenue of Tiffany & Co, has set up its own polishing factories, so that it can buy rough diamonds directly from miners.

“They're very important people in the diamond industry”, says Gem Diamond's Elphick.

“I first went to China in 1988 and I've seen the transformation and the huge number of stores opening in not just the first-tier cities, but also the second and third and fourth-tier cities.

“It's simply remarkable what's going on there. We see the volume of goods which is headed that way – it's really spectacular,” he adds.

Although China is increasingly active in mining other assets, so far the country is focused on buying diamonds from existing producers.

Cathy Malins, from Petra Diamonds, says the company has not yet had to compete with China for mines.

“There are so few diamond mines worldwide that there are inherently high

barriers to enter the market. But there are signs that China is starting to look at ways to encourage its diamond industry and I think it's likely they could look at diamond mining assets in the future, as they have no significant producing diamond mines in country,” she says.

For those companies that already have an existing stake in the market, any extra discovery will offer a promising opportunity.

Stuart Brown Chief Executive - Firestone Diamonds

Stuart Brown, chief executive of Firestone Diamonds, says that the company aims to supply into the gap between supply and demand, and expects to benefit.

He also believes that investment and technology may lead to further operations.

“Take the case of the Liqhobong diamond mine [Firestone's Lesotho mine]. It has been around for nearly 60 years and only now is it coming to production.

“I think we will have far longer than the next two decades to discover the solution,” he says.

A new diamond mine could always be discovered tomorrow, of course. But it looks like engagement rings won't be costing the traditional three months' salary for much longer. n Mines to Market | March-April’ 2014

INDUSTRY WATCH

I

t is said in the diamond business that each rough stone crosses at least three borders before anyone cuts and polishes it. In 2012, total world production of mined diamonds stood at about 128-million carats valued at $12.6billion. But the total imports of diamonds by the countries aligned to the Kimberley Process, which exists to stem the flow of "conflict diamonds", were three times this figure – 406-million carats valued at about $51-billion.

So, without cutting, and because of the diamonds being repeatedly retraded between countries, their value had risen from about $98 a carat to about $125.

The first time a rough diamond crosses a border it is from the country of production – in Africa, Canada or Russia – to where it is aggregated.

Diamond Trade Bleeds the Poor Corruption in the chain artificially raises prices, plumping the pockets of the already rich Under the 2011 marketing agreement between Botswana and De Beers, the aggregation of most of De Beers's diamonds is now returning to their geological home in Africa, that is, Botswana, so diamonds produced by De Beers in Canada, Namibia and South Africa go to Botswana rather than to De Beers's office in London, the former capital of diamond aggregation.

The second time a rough diamond crosses a border it is often being traded for "cleaning" – to clear it of any possibility that the owner will have to pay income taxes in another jurisdiction, gain any other commercial benefits from it or use it to launder money from other businesses or fund criminal activities.

India imported roughly a quarter of its rough diamonds from Dubai and the rest from Europe. In 2012, approximately half of Dubai's exports of rough diamonds were to India, which makes Dubai an important entrepôt for the trade from Africa to India.

Mines to Market | March-April’ 2014

Easy to smuggle: The beauty of diamonds lies not just in their appearance but also in their high value to weight. This has made them easy to smuggle and, because of their natural scarcity and the De Beers cartel in the 20th century, they were a good hedge against inflation and economic and political crises.

But, increasingly, organisations such as the Organisation for Economic Cooperation and Development (OECD) are taking a keen interest in diamonds and their use to launder money and fund terrorism. A major publication by the OECD on diamonds and money laundering is expected in the coming months.

The third time a rough diamond crosses a border it is to be cut – and that usually is in India, which, despite the pretensions of the Southern African countries such as Botswana, South Africa and Namibia, is basically where 80% to 90% of the world's diamonds were cut in 2012. India regularly boasts that 14 out of every 15 diamonds set in jewellery in the world were processed in India.

Diamonds are among India's biggest export sectors and were responsible for exports of $43-billion (14% of its total exports) in the financial year 2011-2012.

Diamond production is one of its leading growth sectors and employs an estimated one million people.

About half of the world's production of rough diamonds passed through the Dubai Diamond Exchange in 2012 and, in the 21st century, it is rapidly replacing Antwerp and Tel Aviv as the trading centre of choice. In 2012, Dubai imported about 60-million carats of rough diamonds and exported nearly the same volume.

So what are the diamonds doing in Dubai?

The short answer is they are increasing in value. The average price of the 60-million carats of rough diamonds entering Dubai in 2012 was $78 a carat and, when the same volume of rough left, it was $112 a carat, an almost 45% increase, which is what you would expect from trade with a country that offers businesses a 50-year tax holiday.

Make your profits in a tax haven and you avoid the issues you find in those very few countries that are still taxing diamantaires on what they say their income and profits are.

17

INDUSTRY WATCH

Presumptive taxes: Because diamond traders are notoriously economical with the truth when it comes to the real price of diamonds, most diamond jurisdictions, such as Belgium and Israel, long ago dispensed with the nicety of even asking diamantaires what their incomes are and have moved to presumptive taxes based largely on turnover.

But evading income tax in the diamond industry, in which there are potentially thousands of different grades of diamond that can make the appearance of low or zero profits almost pro forma, predates the ease and simplicity of evasion that tax havens such as Dubai and Switzerland have created.

One the most important commercial benefits of these havens lies in the secrecy they permit when it comes to the corrupt trade in diamonds.

Let us say you are a corrupt official of a diamond-exporting country. Assume that you have a shipment of diamonds worth $100-million but you value it at $50million. This allows you to avoid the payment of export taxes or royalties on half the value and to split some of the benefits with the corrupt official.

This is among the more profitable of rough diamond transactions but you still need a place where secrecy is respected and where you can realise the full $100million value of the transaction by trading with a related company. Dubai's imports of rough diamonds in 2012 came from several conflict-prone producing countries in Africa, including the Democratic Republic of Congo (DRC), Zimbabwe and Angola.

Not one of these countries has had a happy history with diamonds and Zimbabwe and the DRC have had their share of problems with the Kimberley Process itself.

According to Kimberley statistics, threequarters of Zimbabwe's 12-million carats of diamond exports in 2012 went straight to Dubai.

Small stuff: Almost half of Angola's production and a quarter of the DRC's production were exported to Dubai but that is by no means where the bulk of Dubai's trade is coming from. It is small stuff when compared with the two biggest users of the tax-free trading environment - the European Union and India.

18

The beauty of diamonds lies not just in their appearance but also in their high value to weight.

This has made them easy to smuggle and, because of their natural scarcity and the De Beers cartel in the 20th century, they were a good hedge against inflation and economic and political crises.

India imported roughly a quarter of its rough diamonds from Dubai and the rest from Europe. In 2012, approximately half of Dubai's exports of rough diamonds were to India, which makes Dubai an important entrepôt for the trade from Africa to India.

The EU has been one of the main destinations for exports. It is by no means simply Africans and Indians using Dubai as a laundry service of choice.

Dubai also has a thriving polished diamond market. Its tax-free environment has led to massive growth and the country becoming one of the world's major diamond centres.

But there is another reason for this burgeoning trade in rough and polished diamonds. Until early this year, India allowed polished diamonds to be imported duty-free while simultaneously providing subsidies to stimulate the country's largest export.

The ever-industrious Indian diamantaires developed a technique of ripping off their national diamond trading system called "round tripping". These subsidies were very lucrative but were dependent on the

export of cut diamonds. So some of the Indian traders would ship the same consignment of cut and polished diamonds five or six times across the Indian Ocean to Dubai, claiming export credits each time.

Very rough trade: But this illicit trade went full circle because the Indian authorities also required the Indian cutters to show that they had processed the rough diamonds and so they would have to "round trip" rough diamonds as well as cut and polished diamonds and so volumes in this very rough trade also increased massively – until the Indian government finally imposed a 2% import duty in 2013 on imported cut diamonds.

Because there remain several commercial reasons for round tripping, not just skimming for export credits, this may decrease the trade significantly across the Indian Ocean but not eliminate it altogether.

Dubai is by no means the only country that plays the role of entrepôt for the freewheeling trade in rough diamonds but it is now by far the biggest. Its importance is also a reflection of the shift in international trade patterns that increasingly excludes Europe and brings Africa and Asia closer together.

Now Dubai and several provinces in China are starting to swamp the traditional tax havens and gaining an important place in the global diamond market.

And, all the while, the world's diamantaires will continue to claim that they make no profits from diamonds that are in the pipeline – and the schools and hospitals so desperately needed in Africa and India will not be built. n Mines to Market | March-April’ 2014

INDUSTRY WATCH

Synthetics a major cause for concern for Botswana

T

he Botswana Institute of Development and Policy Analysis, (Bidpa) has warned that countries in the Southern African Development Community (SADC) region will be affected by the increase in gemquality synthetic diamonds, with Botswana to feel the greatest impact.

In a report released earlier this month, BIDPA projected that synthetic diamonds could represent about one-third of mined diamonds by 2018.

Bidpa senior researcher Professor Roman Grynberg says, while analysts agree that there is emerging demand for mined diamonds, supply from mines was expected to decline, creating space for synthetics.

Mines to Market | March-April’ 2014

Projections:

Roman Grynberg BIDPA Senior researcher Professor

It does not require significant analysis to realize that Botswana, the world's most diamondexport-dependent country, is simultaneously the most vulnerable to any supply shock stemming from synthetics because it has the least diversified economy of all diamond producing countries

“Assuming that these long-term projections of excess demand are correct, the shortage of mined diamonds will create a natural space for synthetics, which, depending largely on consumer acceptability, could grow to represent one-third of the gem-quality market by 2018. It has been assumed that the excess demand will generate significant increases in prices but, increasingly, there is the view that excess demand will result in a higher rate of penetration of synthetics into the market, which may well result in a decrease in prices at the bottom end of the gem-quality diamond market,” says Grynberg.

He adds that, in view of the fact that Botswana earns significant revenues directly from the taxation of diamond mining companies; any decline in prices will affect not only mineral taxation, but also returns on investment in the country's diamond sector.

“It does not require significant analysis to realize that Botswana, the world's most diamond-export-dependent country, is simultaneously the most vulnerable to any supply shock stemming from synthetics because it has the least diversified economy of all diamond producing countries,” he says.

He adds that synthetics should be a cause for concern for Botswana, Lesotho and Namibia, and, “for Botswana, a precipitous long-term decline in prices will have a greater impact on the economy than for any other producer'.

Diamond exports constitute 30% to 50% of Botswana's total revenue, levied in the form of taxes, royalties and dividends from De Beers Debswana and De beers. The country exported diamonds worth $661-million in 2012, increasing to $842-million in 2013.

19

INDUSTRY WATCH

Strong gold demand in China in next four years

A

major report published today by the World Gold Council “China's gold market: progress and prospects” suggests that private sector demand for gold in China is set to increase from the current level of 1,132 tonnes(t) per year to at least 1,350t by 2017. Following the record level of Chinese demand in 2013, which saw the country become the world's largest gold market, the report suggests that while 2014 is likely to see consolidation, the succeeding years are likely to see sustained growth.

The report examines the factors that have driven China's rise to become the number one producer and consumer of gold since the market began liberalising in the late 1990s. It also highlights why despite this steep growth in demand, the market will continue to expand, irrespective of short term blips in the economy.

The next six years will see China's middle class grow by over 60%, or 200m people,

20

to a total of 500 million. Comparing this to the total population of the US, which stands at 319m, puts the size of this new market of affluent consumers, with the propensity to buy gold, in perspective.

In addition to these newly emerging middle classes, rising real incomes, a deepening pool of private savings and rapid urbanisation across China suggest that the outlook for gold jewellery and investment demand in the next four years will remain strong.

Albert Cheng, Managing Director of the Far East at the World Gold Council said: “Since liberalisation of the gold market began in the late 1990s and the subsequent offering of gold bullion products by local commercial banks from 2004, we have witnessed astonishing increases in demand for gold from consumers across the country. The cultural affinity for gold runs deep in China and when this is combined with an increasingly affluent population and a supportive government,

there is significant room for the market to grow even further. The country is now at the centre of the global gold eco-system.”

“Whilst China faces important challenges as it seeks to sustain economic growth and liberalise its financial system, growth in personal incomes and the public's pool of savings should support a medium term increase in the demand for gold, in both jewellery and investment.”

The key findings from the research include the following: n China's continuing urbanisation means that it now has 170 cities with more than one million inhabitantswithin these cities, the middle classes currently number 300million and are set to grow to 500million by 2020. Demand for gold amongst those with a greater disposable income and limited investment opportunities will continue to grow. n China's continuing urbanisation means that it now has 170 cities with more than one million inhabitantswithin these cities, the middle classes currently number 300million and are set to grow to 500million by 2020. Demand for gold amongst those with a greater disposable income and limited investment opportunities will continue to grow. n Chinese savings levels remain high – there is an estimated US$7.5 trillion in Chinese bank accounts and household allocations to gold remain small, around $300bn. Gold is seen as a stable, accessible investment by consumers, particularly in the light of rising house prices and a lack of alternative savings options. Chinese investors have a preference for physical gold over paper, with investment focused on small bars, gift bars or Gold Accumulation Plans (GAPs). New gold investment products mean that medium term demand for bars and coins could reach close to 500t by 2017 – a rise of nearly 25% above its record level last year.

Mines to Market | March-April’ 2014

INDUSTRY WATCH n China has become the world's number one jewellery market, nearly trebling in size over the past decade – at 669t in 2013, it accounts for 30% of global jewellery demand. Estimates suggest that demand will continue to grow and reach 780t by 2017. There are now over 100,000 retail outlets selling 24k gold and thousands of manufacturers nationwide. n Consumer sentiment toward gold is unwavering – although 40% of jewellery consumption relates to weddings, the appetite for gold in China goes beyond occasions and gift giving. 80% of consumers surveyed for this report planned to maintain or increase their spending on 24-carat gold jewellery over the next 12 months believing that gold will hold its long-term value and because they expect to have a higher level of disposable income. n Chinese electronics demand for gold will see small gains in the next four years – industrial demand has grown with electronics being the key driver (climbing from 16t in 2003 to 66t in 2013).

China is also the leading market for gold related patents such as the use of nanogold in healthcare. n Official gold holdings in China totalled 1,054t at the end of 2013 making the country the world's sixth largest holder of bullion- based on this declared stock, gold represents 1% of China's total official reserves (down from a peak of almost 2% in 2012) due to the rapid growth of the country's foreign exchange

holdings which reached around US$3.8 trillion at the end of 2013. Speculation continues as to whether the Chinese government has increased its gold holdings. n China has gone from being a minor producer to the world's largest source of mined gold - in the past ten years production has doubled from 217t to 437t.

NEW LAUNCH

GLEAMY SPRING CONCOCTION BY OM JEWELLERS

S

olitaires! Uncut Diamonds! White gold!

The desire to stand out intensifies this fresh season, with bling. Making it to the top list of trendsetters, bling is catching up this spring. Comprehending the aspirations of their buyers, OM Jewellers presents bling in their new collection.

OM Jewellers have attained the trust and loyalty of their clientele with their consistent delivery of inimitable quality. Some of their finest jewellery pieces include uncut diamonds, single stone jewellery and solitaires.

In this collection they offer Multi layer neck piece with colored stones to enhance the look, Statement rings, studs, chandelier and bold earrings, cuffs etc The concoction entails a range of elegant and stylish pieces to delight every buyer's style buds.

Mines to Market | March-April’ 2014

21

COVER STORY

Say 'NO' to Ivory Jewellery‌

T

he US recently declared a comprehensive ban with immediate effect on import of ivory as a part of its new National Strategy for Combating Wildlife Trafficking which has touched an alarming level especially in South Africa.

A historic event took place last month in London where representatives of at least 50 countries along with the European Union and some multilateral environmental agencies had gathered for the 'London Conference on the Illegal Wildlife Trade'. The Summit signed a Declaration expressing its determination to wrestle this 20 billion-dollar global and illegal wildlife trade which leads to corruption and disruption of local economies and livelihoods, and robs communities of their natural capital and

22

cultural heritage.

Statistics revealed by the Summit are horrifying. According to an estimate, there were 1.3 million elephants in Africa in 1979, today only 500,000 have survived and out of which on an average 100 tuskers are being killed every day by poachers. There were 500,000 rhinoceroses in the beginning of the 20th century; today there are less than 30,000.

Alarmingly now the poaching activities have skyrocketed. A recent study reveals some alarming facts that five countries in Central Africa have lost 65% of their elephant population between 2002 & 2011, with Gabon bearing the biggest losses. South Africa alone lost more than 1,000 rhinos to poachers in 2013 which is a 50% rise on the last year and up from just 13 in 2007.

The global ivory trade was banned under the UN Convention on International Trade in Endangered Species of Wild Fauna and Flora (Cites) in 1989. But with ivory prices reaching about $3,000 per kilo and rhino horns $60,000 per kilo along with an insatiable demand, the huge profits have tempted many to flout the law.

Apart from the US, many Asian countries are also craving for the wildlife goods.

China, Vietnam and Indonesia are supposed to be the biggest markets where the artisans and craftsmen are known for their ability to transform ivory into complex and beautiful objects and even imbed it on gold jewellery. Major bulk of the illegal ivory is being smuggled from African sources, rather than from Asian elephants.

But recent investigations into the ivory trade in India and Myanmar have revealed the re-emergence of Asian ivory in the domestic markets. A 1997 TRAFFIC report specified that even seven years after the global trade in ivory was banned, illegal deals continued in the Far East, where South Korea and Taiwan (China) emerging as major markets.

Besides the demand for ivory, Asian elephants are also hunted for their meat and skin (leather) in some regions of Asia.

Today, domestic ivory markets in Asia are the biggest threat to wild elephant populations than international trade in ivory.

India has already banned the ivory trade but it is still bearing the brunt of this illegal and criminal activity. Ivory mafias here Mines to Market | March-April’ 2014

COVER STORY target elephants in Odisha and other Southern states with advanced weapons and customized equipment. This needs immediate intervention. According to a report, the Forest Department here has very scanty information about the actual wildlife poaching and trade.

The United Nations has declared 3rd March as 'World Wildlife Day'. The signatories to the Summit declaration have agreed that 'decisive and urgent action' needs to be taken. Apart from pledging to introduce wide-ranging practical initiatives, several key Summit participants have also committed to provide additional resources, including an amount of ÂŁ10 million from the UK. The Summit will be held again in Botswana next year to review its actionplan. So, one can hope to have positive outcome of this war against wildlife mafias.

African land grabs fuel illegal ivory trade: Political and military elites are seizing protected areas in one of Africa's last bastions for elephants, putting broad swaths of Zimbabwe at risk of becoming fronts for ivory poaching, according to a nonprofit research group's report that examines government collusion in wildlife trafficking.

Zimbabwe has maintained robust elephant populations compared with other countries on the continent. But economic penalties imposed by the U.S. and Europe have led Zimbabweans with ties to President Robert Mugabe's ruling party to find new methods of making money.

The report says they may be turning to elephants' highly valued ivory tusks.Zimbabwe's embassy in Washington did not respond to a request for comment.

Born Free USA, an animal advocacy group, commissioned the report from Washington-based C4ADS to better understand the role organized crime and corrupt government officials play in ivory trafficking across Africa, said Adam Roberts, Born Free USA's chief executive officer.

Wildlife trafficking long has been viewed as a conservation issue, but it has exploded into an illicit global economy monopolized by mafia-like syndicates and enabled by high-level bureaucrats and powerful business interests. The Mines to Market | March-April’ 2014

report describes a toxic combination of conflict, crime and failures of governance throughout Africa that threatens to wipe out the continent's dwindling elephant herds.

China, the world's largest market for ivory, is compounding the threat, the report said. Chinese companies have won lucrative contracts in Zimbabwe for mining and construction projects near remote elephant habitats, bringing waves of workers and new roads that can be exploited by East Asian crime organizations, the report said.

North of Zimbabwe, in central Africa, an estimated 23,000 elephants, or roughly 60 each day, were killed last year. A pound of elephant tusk sells for about $1,500 on the black market. That's more than double the price just five years ago. Ivory is used to make carved ornaments and trinkets.

Rhinoceroses also are heavily poached for their horns, which some Asian cultures believe contain medicinal properties.

Organized crime links: TRAFFIC, a global wildlife trade monitoring network, says there are between 47,000 and 93,000 elephants in Zimbabwe. The gap is due to the fact that full-fledged surveys of the animals have not been carried out since 2007, said Richard Thomas, the organization's spokesman.

Across Africa, there are close to 500,000 elephants, a fraction of the nearly 10 million that roamed there just 100 years ago.

The U.S. Fish and Wildlife Service this month signalled its worries about the future of Zimbabwe's herds in a decision blocking the importation of African elephant trophies taken in Zimbabwe during 2014. Noting the cyanide

poisoning of 300 elephants last year in Zimbabwe's Hwange National Park, the agency said it has "significant concerns about the long-term survival of elephants in Zimbabwe."

The ban also applies to Tanzania.

The Obama administration in February published a national strategy for combating the multibillion-dollar poaching industry, relying on many of the same tactics used against terrorist organizations and drug cartels.

The plan outlines a "whole of government approach" that includes working with other countries to increase the number of investigations and arrests, using high-tech gear to identify poaching hot spots, and targeting the bank accounts of wildlife traffickers and the corrupt bureaucrats who assist them.

"Our findings shine a bright light on Zimbabwe, Mozambique, Tanzania, Sudan, and Kenya, where poachers move across borders with near impunity, slaughter elephants with complete disregard, and use the ivory to fund violent operations across the continent," said Born Free USA's Roberts.

"Global leaders cannot stand by while the human tragedy and poaching crisis continue."

23

COVER STORY

Poaching hot spot: Zimbabwe, the report said, could become a poaching hot spot with little warning.

Mugabe has led the country since independence from British rule in 1980.

In his early years in power, he expanded public education and health services, making Zimbabwe a beacon on the continent.

But Zimbabwe's economy went into meltdown in 2000 after Mugabe ordered the seizure of thousands of white-owned commercial farms, leading to the collapse of the agriculturally based economy, once the region's breadbasket.

More than a decade ago, the U.S. and the EU began imposing sanctions against Mugabe and members of his inner circle for human rights abuses, public corruption, and vote-rigging. The penalties set strict business and travel bans.

Mugabe's ZANU-PF party has blamed the sanctions for Zimbabwe's economic woes.

Among the areas in jeopardy is Zimbabwe's Save Valley Conservancy, a 1,600-square-kilometre collection of unfenced wildlife reserves that is home to most of the country's elephants and rhinoceroses. Land reform policies have allowed politically connected people to receive hunting permits and land leases in the conservancy, according to C4ADS. "Many have histories of exploitative business practices, muscling into firms, stripping them of all value, and moving on, which creates a high risk of systematic poaching on seized lands," the report said.

The lack of transparency into the inner workings of Mugabe's government makes it difficult to establish direct links between government loyalists and their interests in wildlife areas. The report said ownership is often masked through associates, family members, and shell companies.

24

'Political/military takeover' Using data-mining software developed by Palantir, a technology company in California, C4ADS named 18 people involved in what the report describes as the "political/military takeover of Save Valley Conservancy."

They include Maj. Gen. EngelbertRugeje, the inspector general of Zimbabwe's defense forces. Rugeje is not on the sanctions list maintained by the U.S. Treasury Department. He did not respond to a request for comment.

Point man ... United States Ambassador Charles Ray

Statistics revealed by the Summit are horrifying.

According to an estimate, there were 1.3 million elephants in Africa in 1979, today only 500,000 have survived and out of which on an average 100 tuskers are being killed every day by poachers. There were 500,000 rhinoceroses in the beginning of the 20th century; today there are less than 30,000. Alarmingly now the poaching activities have skyrocketed. A recent study reveals some alarming facts that five countries in Central Africa have lost 65% of their elephant population between 2002 & 2011, with Gabon bearing the biggest losses.

South Africa alone lost more than 1,000 rhinos to poachers in 2013 which is a 50% rise on the last year and up from just 13 in 2007.

The U.S. Embassy in Zimbabwe has long been aware of concerns over Rugeje.

In the fall of 2009, he was accused of threatening to shoot a Zimbabwean lawmaker who had criticized the general for using soldiers to intimidate voters, according to an embassy cable published by the Wikileaks website. Rugeje previously was reported to the embassy for orchestrating violence in parts of Zimbabwe where candidates who ran against Mugabe's ZANU-PF party were elected to parliament.

A government official reported to be involved in the distribution of wildlife areas to Mugabe loyalists disputed the allegations.

"If I repeat a lie 20 times, does that make it factual?" Francis Nhema said. Nhema leads the ministry tasked by Mugabe with putting in place a program to take over 51 percent control of remaining foreign and white-owned businesses and assets. He formerly ran the environment ministry. He has been on the U.S. sanctions list since 2003.

Embassy officials in Harare privately voiced misgivings about Nhema following a 2010 meeting he had with Charles Ray, then the U.S. ambassador.

Nhema denied that high-ranking Zimbabwean officials were involved in poaching activities and he rejected reports that land within the Save Valley was being commandeered for personal gain.

"He is soft-spoken and comes across as reasonable," reads a February 2010 cable, marked confidential. "He is, however, at least somewhat disingenuous. ... In short, he toes the ZANU-PF line.�

Mines to Market | March-April’ 2014

ISRAEL SECTION

ISRAEL'S U.S. / INT'L DIAMOND WEEK BEGINS WITH FESTIVITIES

s

rael's third U.S. / International D i a m o n d We e k kicked off on Sunday with a festive opening ceremony presided over by Israel Diamond Exchange president Shmuel Schnitzer, attended by hundreds of diamond traders from all over the world and many bourse members, filling the

Rainbow Collection Wows Diamond Week Attendees

IDE president Shmuel Schnitzer at the opening of the 3rd U.S. / International Diamond week

trading auditorium. Italian uber-designer Roberto Coin was the ceremony's guest of honor.

"While the official opening of the diamond week is to take place tomorrow, with the arrival of the American delegation, there are close to 400 Israeli exhibitors and hundreds of buyers from abroad here that have come to do business. I want to wish you a successful week of good business deals," Schnitzer said.

"This event constitutes just one more stage in our intense efforts to promote the Israeli diamond industry," he said. " I want to thank the chair of the organizing committee, Moti Fluk, and the IDE general manager, Moti Besser, and his

Guest of honor at the US & International Diamond Week Roberto Coin addressing Israeli diamantaires

t e a m , f o r o rg a n i z i n g a n d producing the event. On behalf of the IDE members, I also want to thank uber-designer Roberto Coin and his partner Pilar for accepting our invitation to be the guest of honor at the third international diamond week; and to Eddy Elzas, who brought his Rainbow Collection of fancy color diamonds. Thanks to our sponsors, as well. May we all have a productive week."

Coin gave thanks for his invitation and noted, "It's a long wrong ahead of us in the diamond and jewelry industries, and that is why

we must change and develop. This afternoon I will lecture on the ethics of brands, on design and branding and on the challenge confronting us from synthetic diamonds. I invite you all to show us and take in my perspective on branding, and why I am confident that we must put special emphasis on Israeli diamantaires and Italian jewelers.”

Diamantaire Eddy Elzas, owner of the largest collection of colored diamonds in the world, said, "We are proud to bring the collection to the U.S. / International Diamond Week taking place in Israel. This collection is the basis and the 'mother and father' of fancy colored diamonds. I thank the bourse president Shmuel Schnitzer for hosting me.”

Mines to Market | March-April’ 2014

Eddie Elbaz with his Rainbow Collection of 300 colored diamonds

D

elegates to the third U.S. / International Diamond Week in Ramat Gan, Israel were treated to Eddy Elzas' collection of colored diamonds that is unrivaled in the world, the Israel Diamond Exchange reports. The standout piece of the collection – both figuratively and literally – was an exceptional stone so unique that all gemological experts who have examined it have refused to grade it: a 32-plus-carat multi-colored stone dubbed the Koi Diamond because it resembles the striped Japanese carp fish in shape and hue.

The precious gem was originally unearthed in the Republic of Congo over a decade ago and has confounded analysts ever since. When subterranean forces churned it out millions of years ago, as fate would have it, streams of iron became trapped within the stone, causing it to exhibit a whole range of colors, including light yellow, dark blue, black, and, primarily, orange.

IDE president Shmuel Schnitzer noted that throughout the week-long diamond festival, crowds of traders have huddled around the Koi Diamond's display case, which has been situated at the entrance of the bourse's trading hall.

25

ISRAEL SECTION

400+ Diamond Buyers Fill Israeli Bourse Trading Hall

Guest of honor at the US & International Diamond Week Roberto Coin addressing Israeli diamantaires together with Israel Diamond Institute chairman Moti Ganz, President of the Israel Diamond Manufacturers Association Bumi Traub, President of the Israel Precious Stones and Diamond Exchange Shlomo Eshed, and President of the Israel Diamond Exchange Shmuel Schnitzer

R

amat Gan's U.S. / International Diamond Week has electrified the Israel Diamond Exchange, drawing an astounding amount of diamantaires to the fray, the bourse reports. On the third day of the week-long sales festival, the public address system announced to the trading floor that at that very moment, more than four hundred diamond buyers had filled the auditorium. The floor was abuzz with traffic and every flat surface was being utilized by attendees examining merchandise and debating diamond prices.

IDE president Shmuel Schnitzer said that the presence of so many diamond industry players from across the planet was infectious and generated optimism for the future of the trade. New York Diamond Dealers Club president Reuven Kaufman spoke of the mutual advantages that joint Israeli-American productions, like the Diamond Week, confer on both country's diamond bourses.

Kaufman applauded the format of the event, noting that it is creating excellent business opportunities. n

25

Mines to Market | March-April’ 2014

UK SECTION

Bering revealed as headline sponsor of inaugural Buyers Power List at Jewellery & Watch London

D

anish watch brand Bering have been revealed by Jewellery & Watch London as the headline sponsor of the inaugural Buyers Power List at the event in June, seeing it become the Bering Buyers Power List.

Now open for entries, the Bering Buyers Power List aims to recognise, celebrate and reward the individuals and companies that suppliers and peers in the jewellery and watch industry have nominated and voted for as making an outstanding difference and being highly influential in the jewellery and watch market.

Bering, famed for their minimalistic Danish-designed, quality, watches and jewellery for both men and women, will be using their headline sponsorship of the event to officially launch their Arctic Symphony range here in the UK. Designed to complement the brand's range of watches, necklaces, earrings and bracelets, Arctic Symphony is a collection of unique rings, incorporating scratch-resistant HighTec-Ceramic, stainless steel, milanaise, Swarovski elements and zirconia, which can be changed and altered by adding and changing different elements, allowing customers to create their own personalised rings.

Arctic Symphony can also be bespoke made in precious metals with diamonds, available on a made-to-order basis.

As part of their sponsorship, Bering will be showcasing their Arctic Symphony collection and some of their watch ranges at Jewellery & Watch London which takes place at London's Saatchi Gallery on June 18-19.

Additionally, the brand is offering all of those who take the time to nominate others for the Bering Buyers Power List, the chance to win one of their watches as part of a prize draw.

Commenting on their sponsorship of the Bering Buyers Power List, Richard Hill, UK Managing Director at Bering said: “Being main sponsor, for what is sure to become a key event in the Jewellery and Watch industry's calendar, allows Bering to build on the success that our watches Mines to Market | March-April’ 2014

Bering will be showcasing their Arctic Symphony collection and some of their watch ranges at Jewellery & Watch London which takes place at London's Saatchi Gallery on June 18-19.

have seen in the UK over the last couple of years. This includes our ever-expanding list of over 400 retail partners, as well being awarded the title of Retail Jeweller 'Watch brand of the year'.

“As jewellery designers' imaginations run wild and a stockist's choice becomes greater by the day, it is fantastic to be able to celebrate those who are going above and beyond to get their collection right time and time again.

“Most importantly, Jewellery and Watch London provides us with a fantastic opportunity to showcase our sensational Arctic Symphony Rings – a unique collection, which incorporates a 'twist and change' ring that allows you to create an individual look like no other, already taking the industry by storm.”

Julie Driscoll portfolio director for Jewellery & Watch London at i2i Events added: “We are delighted to welcome Bering as our headline sponsors for our first-ever Buyers Power List.

“As current Watch Brand of the Year, Bering are at the top of their game when it comes to producing quality, beautiful watches and we are looking forward to helping them officially launch their Arctic Symphony range here in the UK.”

These individuals and companies will then be contacted and asked to rank their favourite five peers on the list in order of preference.

This peer voting system will then be used to rank the final list in order, giving a comprehensive list of the most influential buyers in the industry, as voted for by the industry.

The final list, including the unveiling of the top 10 most influential buyers in the industry, will be revealed during a champagne reception sponsored by Bering at 6pm on Wednesday 18th June, after the first day of opening of Jewellery & Watch London at London's iconic Saatchi Gallery.

The forthcoming edition of Jewellery & Watch London will take place at London's Saatchi Gallery on June 18-19 with top jewellery & watch brands including Bering, Chimento, Chavin Jewellery, Deakin & Francis, BQ Watches, Fei Liu Fine Jewellery, Ingenious Jewellery, Maree London, Pearl & Queenie, Lars Larsen Watches, The Fifth Season by Roberto Coin, Rosato, Bizotto Gioielli, Martin Ross Group, Lucy Q Designs, Gemmini, Wedds & Co, Sonny's, Willow & Clo, Aurum of Jersey, Beno, Dubini, Amore & Baci, Lalique, Costantino Rota, Nomination, Kirsten Goss, Parisi Luxury Jewellery,

For more information on the criteria for each of the categories in the Bering Buyers Power List and to vote please visit www.jewelleryandwatchlondon.com/buy ers-power-list . The initial round of voting is open until Friday 9th May, 2014.

Livyora, Amrapali, Kastur Jewels, Jerboa Jewellery, Heliopolis Accessories and RUIFIER all already signed-up to exhibit.

Once the nominations are in, Jewellery & Watch London will compile a shortlist based on those individuals and companies with the highest number of nominations.

The National Association of Goldsmiths (N.A.G.) will also hold its Annual General Meeting at the same time as the show on June 18. n

27

UK SECTION

Lucy Q Designs to unveil new pieces at Jewellery & Watch London

B

ritish jewellery designer Lucy Quartermine is set to unveil several new pieces from her eponymous Lucy Q Designs brand at the forthcoming Jewellery & Watch London event.

Nominated as a finalist for the prestigious Designer of the Year category at last year's UK Jewellery Awards, Lucy is famed for her playful yet timelessly beautiful pieces made in highly-polished sterling silver.

At Jewellery & Watch London, which takes place on June 18-19 at London's Saatchi Gallery, Lucy is planning to unveil her new Art Deco designs which form part of her Art Deco Collection, originally launched in March.

This will be the first time that the new Art Deco designs, within the Art Deco Collection, have been seen by customers and Lucy hopes that the Saatchi Gallery will provide the perfect backdrop for these previously unseen pieces.

Commenting on the choice of venue for this year's Jewellery & Watch London, Lucy said: “The Saatchi Gallery is a prestigious site which will look especially impressive with the jewellery and watches showcased.

It has been a busy year for Lucy since being nominated for the UK Jewellery Award and she has introduced Gold, Rose Gold and Swarovski crystals for the first time to her collections.

Looking ahead to Jewellery & Watch London, Lucy added: “I'm hoping to have an outstanding show and really look forward to catching up with our current customers as well as meeting new ones.”

Lucy Q Designs is just one of the many top jewellery and watch names set to exhibit at the forthcoming show joining the likes of Bering, Chimento, Chavin Jewellery, Deakin & Francis, BQ Watches, Fei Liu Fine Jewellery, Ingenious Jewellery, Maree London, Pearl & Queenie, The Fifth Season by Roberto Coin, Rosato, Bizotto Gioielli, Gemmini, Willow & Clo, Aurum of Jersey, Dubini, Amore & Baci, Lalique, Costantino Rota, Nomination, Kirsten Goss, Parisi Luxury Jewellery, Livyora, Amrapali, Kastur Jewels, Jerboa Jewellery, Heliopolis Accessories, Luca Carati, Heinz Mayer, 5th Avenue Jewels, Mark Milton, Lancaster Italy, Adriatica & Jowissa and RUIFIER. The National Association of Goldsmiths (N.A.G.) is to hold its Annual General Meeting at the same time as the show on June 18.

In addition to the N.A.G. AGM, Jewellery & Watch London will also play host to the final announcement of its inaugural Bering Buyers Power List.

The Bering Buyers Power List aims to recognise, celebrate and reward the individuals and companies that suppliers and peers in the jewellery and watch industry have nominated and voted for as making an outstanding difference and being highly influential in the jewellery and watch market.

For more information on the criteria for each of the categories and to vote please visit www.jewelleryandwatchlondon.com/buyerspower-list . The initial round of voting is open until Friday 9th May, 2014. The show will take place on June 18-19 at London's Saatchi Gallery. For more information or to register to attend the show, visit www.jewelleryandwatchlondon.com n

28

Mines to Market | March-April’ 2014

SHORT NEWS

Our Joint Venture with L S Jewelry Group, Bangkok

31st Hong Kong International Jewelley Show :

T

he 31st Hong Kong International Jewellery Show opened at the Hong Kong International Convention & Exhibition Centre on Wednesday, 5th March, 2014. For the first time, two major jewelry shows were held bringing more than 3,800 exhibitors together.

We have been regularly taking part in Hong Kong exhibitions. However, this time the show was excellent as compared to past years. Among all the goods, sale of +15 lower colour was very good. Salle n old and wonderful joint venture and business association with a Company of of Non-certified goods was major. There very high repute in Bangkok - L S Jewelry Group, a family business group, were buyers from China, Taiwan, Korea, Sale this time was has taken over the market in Bangkok by storm. Mr. Peeravat Suraseth, etc. took part.

Managing Director of the Group is a very old and renowned customer of Laxmi Diamond excellent and we are very happy with the Pvt Ltd. Their association with our group has enabled sustainable growth in diamond result. market, mutually. The Company is a manufacturer, wholesaler and exporter of best and The arrangements made at the show were finest diamonds and rare gems and jewellery in Thailand for more than 80 years. The group is an award winner from many associations, business and government sector. L S wonderful. Firstly, the separate sections Jewellery Group has met an equal match in our Laxmi Diamond Group. Best for Jewellery and Diamonds made it manufacturing practice, certified quality products, transparent dealings, good customer easier for the customers to select their goods and the overall rush was divided. service has enabled both the Groups to compete successfully in the diamond market.

Administration was superb; Infrastructure Laxmi Diamond is a rapidly growing Company with powerful potential in the industry was well planned, leading to smooth flow and the joint venture with L S Jewelry Group, with whom the business is going on and of customers. n will continue to grow in the future seems bright and colourful for both the companies n

A

Gold Price Plunges by Over 2 Per Cent

G

old tumbled about 2 per cent on Tuesday on heavy stop-loss orders placed by momentum traders as prices broke below the key 200-day moving average. Silver and platinum group metals also sold off after Monday's rally across the board.

In the 10 minutes between 8:20 a.m. and 8:30 a.m. EDT (1220-1230 GMT), trading volume in US gold futures measured nearly 20,000 lots, or one-fifth of the total turnover at the time. Prices plunged $US15 at 8:27 a.m. in just a minute, ahead of the release of data showing rising US consumer inflation.

A bout of stop-loss orders placed by 'trend followers' cascaded into each other when prices sank below their 200-day moving average near $US1,300 an ounce, said Frank McGhee, head precious metals dealer at Chicago commodities brokerage Alliance Financial LLC. Gold's sharp pullback came even as Ukrainian armed forces on Tuesday launched a 'special operation' against militiamen in the country's Russianspeaking east.

Traders said the premium of geopolitical tensions has already priced in the gold market. "When you have today news, the gold market is likely to go in the opposite direction of what you had expected," McGhee said. "Gold is doing what it should be as opposed to just reacting to the immediate headline of the day."

Gold for June delivery fell $US27.20, or 2.1 per cent, to settle at $US1,300.30 a troy ounce. Earlier, gold hit a low of $US1,290.34 an ounce and at the time was on track for its biggest one-day drop since Oct. 1. n Mines to Market | March-April’ 2014

29

SHORT NEWS

Joyalukkas Jewellery inaugurates new mall of Joy, in Thrissur

JNA Awards 2014: Deadline for Entries Extended to 8th May

T

NA Awards, the annual industry-wide event that honors the innovators and leaders of the international jewellery industry, with a focus on their achievements and contribution in Asia, has now extended the deadline for accepting entries up to 8th May, 2014, an official press release issued by the organizer says.

Individuals or companies may submit their entries or on behalf of others by completing the online application form available at the Awards' website: www.jnaawards.com. Deadline for submissions will be midnight (Hong Kong time) of 8th May, 2014. n

J

he recently opened Mall of Joy, Thrissur got its second celebrity visitor at the world's favourite jewellery showroom Joyalukkas. The evergreen superstar and Joyalukkas brand ambassador Suresh Gopi was thrilled to visit the newly opened mall and exclaimed 'Wow, I am thrilled for Thrissur residents, they truly deserve a mall of international stature and this is what Mall of Joy is. This beautiful mall compares to the best in the world and houses my favourite jeweller, Joyalukkas so I feel truly special to be a part of the Joyalukkas family” Suresh Gopi also did the honours of picking the second set of winners for the raffle draw which shoppers are entitled to on shopping worth Rs.5,000 at Joyalukkas Jewellery and Rs.1,000 worth of purchase at all other outlets within Mall of Joy. “The response to Mall of Joy has been phenomenal from the residents of Thrissur so am glad I have built our first mall here. The customers are truly appreciating our stat-of-the-art interiors and worldclass products and services available in the various outlets. We will ensure the best quality products at competitive prices at all times across all our outlets,” said Joy Alukkas, Chairman & MD, Joyalukkas Group.

Mall of Joy features a dream mix of outlets which includes the globally renowned fashions & silks destination – Jolly Silks, The world's favourite jeweller – Joyalukkas, A house of branded watches – John Paul Watches, The home for cosmetics & Perfumes – ME (Mary & Elza) cosmetics, A baby's paradise – Michelle baby shop, The place for cutlery and lifestyle products – Homeland, The place for Silver jewellery, gift items and accessories – Silver Center, The house of electronics and home appliances – Digital Plus, The world of leisure & fashion footwear – Planet walk & your favourite money exchange – Joyalukkas Exchange. Mall of Joy's next celebrity visitor will be Padma Shri Jayram who will visit the mall on 27th April, 2014. n

30

Mines to Market | March-April’ 2014

Japan to Host International Jewellery Kobe Fair in May

J

apan's upcoming International Jewellery Kobe Fair (IJK), scheduled for May 14-16, 2014, is expected to feature 450 exhibitors including Japanese jewellery and gemstone suppliers from around the country as well as close to 100 international companies from Italy, USA, Canada, Hong Kong, Taiwan, Thailand, Indonesia, Poland, India, Iran and elsewhere.

On exhibit will be exhibiting collections of diamonds in all sizes, cuts, and colors, along with a variety of other gemstones and jewellery.

In its 18th year, the IJK will also display Japanese jewelry designs as well as collections of jewellery manufactured by Japanese technology. The trade fair will also have a pearls section, featuring over 50 Japan-based pearl suppliers, as Kobe is a well-established distribution center in the world for quality pearls.

High-value estate jewellery, coral and jade will also be presented. In total, the exhibitors are expected to bring over 540,000 pieces to exhibit, signifying the largest collection in western Japan, according to IJK show management. IJK is expecting to attract a total of 16,000 buyers from all over Japan and Asia. n

SHORT NEWS

CIBJO Releases Colored Stone Special Report

W

ith fewer than five weeks to go to the opening of the 2014 CIBJO Congress in Moscow on May 19, 2014, the fourth of the CIBJO commissions' Special Reports has been released. Prepared by the CIBJO Colored Stone Commission, headed by Nilam Alawdeen, the report focusses on the proper disclosure of gemstone treatments and modifications, and in particular about how lead glass-filled rubies should be properly qualified.

In his report, Mr. Alawdeen explains that, in the case of heavily glass-filled rubies,

CIBJO requires that they be classified as "Ruby and Glass, and described as a "manufactured/composite material or product." In addition, in order to properly protect consumers, the inherent instability of heavily glass filled rubies and other varieties of corundum should also be conveyed as part of the disclosure requirement.

Relating to the global method of coloured gemstone disclosure that CIBJO, the American Gem Trade Association (AGTA) and the International Colored Stone Association (ICA) agreed upon in

2010, Mr. Alawdeen writes: "The international disclosure coding system has been in existence for four years already, but unfortunately it's still seldom used. Consequently, this is an opportune time to remind the industry of the need for disclosure and traceability, and that a practical system is available to do this."

However, adds Mr. Alawdeen, the disclosure codes are meant for the use of the trade and industry only. A more detailed explanation of the treatment or modification must be provided to the consumer. n

Istanbul Jewellery Show Ended on a High Note

T

he majority of the 1,200 exhibitors at the 38th Istanbul Jewellery Show said they were satisfied with the results of the trade fair, which drew close to 27,000 buyers from across the globe. The B2B fair was held from March 20 to 23.

Gold jewellery was predominately sought after by buyers from the Middle East, North Africa and central Asia,

Mines to Market | March-April’ 2014

which generally placed orders for 18karat and 22-karat plain yellow gold jewellery. Pieces in 14-karat and 18-karat rose, yellow and white gold set with SI to VS clarity grade diamonds, on the other hand, were among the more popular items for Russian and other European buyers.

The show's various product offerings and wide range of price points were wellreceived by buyers. “The fair is very good.

It is nice to see new designs and new companies. We already placed orders with Arpas, Kocak and Roberto Bravo,” Savic Dragan from Bosnian jewellery company Zlatara Rubin said.

In addition to finished jewellery, the show's technology section also generated a lot of market buzz. “We are happy with the increase in the number of exhibitors.

The Istanbul Jewellery Show has been organized very successfully. We made business [deals] with Sisma Machinery,” said Unit Anil from Anil Gold, a Turkish company. n

31

SHORT NEWS

Indian Gems & Jewellery Trade Unhappy With RBI's Monetary Policy Mumbai Diamond Firms Planning to Move to Surat

M

umbai may be about to suffer a blow to its reputation as the diamond capital of India.

More than 50 large diamond companies in the city, reportedly representing over 70 percent of the diamond trade in Mumbai, have decided to move to Surat, the world's biggest diamond cutting and polishing center.

A meeting of the diamond firms was held last week in the offices of a DTC Sightholder at Bandra Diamond Bourse (BDB) where diamantaires endorsed the construction of a diamond market in the Surat'sVesu or Dumas area by the end of this year, according to The Times of India.

In the last few months, many small and medium diamond traders operating at Mumbai's Opera House started moving to Surat after some big diamond companies relocated to the BDB since they could not afford the rents being demanded.

Surat Diamond Association (SDA) President Dinesh Navadia was among the few industry leaders who were present at the meeting in Mumbai. He said around 60 percent of the space in the diamond market in Surat would be reserved for small and medium-size diamantaires. The diamantiares have decided to form a private limited company for the diamond market project.

Navadia said, "In the absence of an international airport in Surat, diamond companies are planning to tie up with logistics companies to ship the export consignment to Mumbai in cargo planes. The SuratHira Bourse (SHB) will be given a bigger role in the import and export of diamonds."

Gems and Jewellery Export Promotion Council Chairman Vipul Shah told TOI, "Nothing is impossible, but it is a long process of migrating the diamond industry from Mumbai to Surat. One can't ignore the importance of Mumbai as the financial capital of the country. Surat is practically a diamond manufacturing centre, but the non-existence of an international airport could be a big hurdle.� n Nothing is impossible, but it is a long process of migrating the diamond industry from Mumbai to Surat. One can't ignore the importance of Mumbai as the financial capital of the country.

Surat is practically a diamond manufacturing centre, but the nonexistence of an international airport could be a big hurdle.

I

ndian gems and jewellery trade is extremely disappointed with the RBI's first bi-monthly monetary police announcement of the new fiscal year, wherein it is learnt to have ignored the plight of the trade, reports The Times of India.

The All India Gems and Jewellery Trade Federation (GJF) has said that the trade was expected some relaxation as per the recent announcement by the Finance Minister as the new buying season is going to start. The trade was expected an immediate end to the gold control raj and the abolition of the 80:20 formula for gold import introduced by the government in July-2013.However, the RBI seems to have failed to consider the long pending demand of the trade in its bi-monthly monetary policy announcement, said the GJF.

Haresh Soni, chairman, GJF said, "It is our demand that the gold import duty should be reduced in the range of 2-4 per cent from the current 10 per cent. Gold should not be single handedly held responsible for the current account deficit (CAD) and now that it is under control, the RBI should have done away with the unnecessary controls in its bi-monthly monetary policy" Ashok Minawala, director, GJF said, "It is a situation of absolute lack of concern for the misery that our unlucky industry is going through that even after 10 months of bringing gold controls, the RBI and the Indian government sit tight. Even if the CAD is positive and balance of payments is okay, there is no need for gold control. n

32

Mines to Market | March-April’ 2014

SHORT NEWS

India's Gem &Jewellery Exports Decline by 11% in 2013-14

T

he Gem &Jewellery Export Promotion Council (GJEPC) on Monday announced the annual performance for the Indian Gem &Jewellery sector for the FY2013-14, declaring a contribution of US$ 34746.90 million to India's foreign exchange earnings, with a decline of 11 percent as compared to the last year figures.

The financial year 2013- 14 saw an increase of 12.65 percent in export of cut and polished diamonds with figures of US$ 19635 million. The industry also saw an increase of 11.98 percent in imports of rough diamonds with figures of US$ 16716 million indicating an increase in cutting, polishing and other manufacturing activities in India. The export of Gold jewellery& Gold medallions together for the period April 2013-14 was at US$ 11045.92 million which shows a decline of 39.50 percent.

This was mainly due to the nonavailability of the gold limiting the extent of trade for many of the Indian players.

The average price for exported gold was lower than previous year adding to the woes of the industry that took a hit and closed at a negative of 11 percent. The coloured gemstones export also dropped by 20.10 percent in this year with figures of US$ 519 million. The Silver jewellery exports had a significant increase by 58.57 percent with figures of US$ 1460 million.

Key exporting destinations for Gems &Jewellery in 2013-14 were UAE with 35% of exports valued at US$ 12195.34 followed by Hong Kong that stood at 28% with value of US$ 9790.45 and USA at 14% with export value of US$ 4948.92.

Commenting on the Financial Year results of the Gems &Jewellery Sector, Mr. Vipul Shah, Chairman of Gem &Jewellery Export Promotion Council said, “There has been a robust growth in the diamond sector. The market is bullish and the US and Europe markets have also improved. Although, there has been a decline by 11% in the overall performance, there are numerous opportunities for growth and improvement. We are looking at new ventures, new markets such as Middle East, Russia, China and various initiatives to promote the industry.”

Mines to Market | March-April’ 2014

Mr. Shah also said that, “The outlook for 2014-15 looks positive in the overall gems &jewellery exports in the current fiscal. The MoU being signed with Russian diamond mining firm ALROSA to share trade and statistical data between the two countries will help in strengthening trade relations between the two countries. Some of our other initiatives for the year 2014-15 include the India - China Gemstones Buyer Seller Meet in Jaipur, India – USA Buyer – Seller Meet to be hosted for the first time in Chicago, The 2nd edition of the global Gem &Jewellery fair in Dubai this November and many more.”

On an optimistic Vice Chairman, Mr. Pankaj Parekh said, “The prospects for 2014-15 looks bright for Jewellery, especially silver jewellry, as the 80- 20 scheme might get diluted, import duty is expected to be rationalized as the RBI has already allowed 4 more banks to operate in imported gold trading. There is also a huge demand in the international market, so we expect a boom in the silver jewellery exports with at least 10 % more exports compared to 2013-14.”

The Gem &Jewellery Export Promotion Council continued with its various initiatives aimed at promoting international as well as domestic trade in India. Some of the initiatives included India International Jewellery Week (IIJW), India International Jewellery Show (IIJS), India-USA Buyer Seller meet, Basel World 2014, JCK Las Vegas Show 2014, Singapore International Jewellery Expo, Bangkok Gems and Jewellery Fair 2014, Budget recommendations to the Government of India and regular industry reports. n

The outlook for 2014-15 looks positive in the overall gems &jewellery exports in the current fiscal. The MoU being signed with Russian diamond mining firm ALROSA to share trade and statistical data between the two countries will help in strengthening trade relations between the two countries. Some of our other initiatives for the year 2014-15 include the India - China Gemstones Buyer - Seller Meet in Jaipur, India – USA Buyer – Seller Meet to be hosted for the first time in Chicago, The 2nd edition of the global Gem &Jewellery fair in Dubai this November and many more.

33

SHORT NEWS

Ban on Trading of Precious Gems De Beers 'Fails' to Assure Botswana of by SEZs Hits Dealers The blanket ban on trading of precious Non-Involvement in metals and gems by special economic zones in order to check circular trading Synthetics - Report

D

e Beers is said to have failed to assure Botswana that it will not be involved in the manufacturing of synthetics.

The Botswana Institute for Development Policy Analysis (BIDPA) was quoted by Southern Times as saying in a report that the government of Botswana had sought assurance that De Beers would not enter the synthetic quality gem market.

As a result, there was an agreement on synthetics signed between De Beers and Botswana, which provided that in the event that the diamond giant enters the gem quality synthetic market, it would market the gems in a 75-25 percent joint venture with Gaborone, claimed the report.

This is because mining of rare gems such as diamonds has traditionally brought significant rents whereas an industrial process which is readily replicable will in the long-term drive only normal profits

BIDPA said a joint venture with De Beers in the production of synthetic gem quality diamonds may lessen losses that Botswana would suffer as a result of the widespread use of synthetics in the jewellery industry.

However, this would likely fail to compensate for the loss of economic rents in the mined diamond sector.

“This is because mining of rare gems such as diamonds has traditionally brought significant rents whereas an industrial process which is readily replicable will in the long-term drive only normal profits,” BIDPA said.

34

have hurt the business of some of the genuine exporters.

Ministry of Commerce and Industry had directed the SEZs last year that no unit is allowed to carry on trading of gold, silver, platinum, other precious metals, diamonds and other precious and semi-precious stones.

“Some of the SEZs or units were indulging in black practice of round tripping for raising bank finance at multiple locations. In such cases selective action can be taken on the units or SEZs instead of suspending trading activity in all SEZs,” said Premkumar Kothari, president, SEEPZ Gems and Jewellery Manufacturers Association.

Some of the large exporters were into importing in bulk of articles like mountings, findings, hooks, chains and master alloys through their trading arms.

These trading divisions used to supply the products to their own manufacturing divisions as well as to smaller companies because import in smaller quantities is not economical for individual units.

However, the ban has affected the procurement of such articles.

“There are trading companies in SEEPZ who stock and sell these items as per the quality specifications by major jewellery buyers like Wal-Mart, J C Penny, Helzberg Diamonds and Fred Meyer. The requirement of these items by individual manufacturing units is small in quantity and larger in variety. Hence, to keep stock by individual units in not feasible and can only be catered by trading units,” said Rajeev Sheth, CMD, Tara Jewels.

“In such cases, we have asked the government to lift the blanket ban and ensure that 90 per cent of these articles are traded within the SEZs and only 10 per cent of the defected ones are re-shipped back to the supplier,” said Kothari.

In case of import of semi-finished jewelery for re-export, the industry wants the norms to be relaxed.

“In view of the high import duty being charged by the US Customs on diamond jewellery, we export semi-finished products from manufacturing unit along

Rajeev Sheth, CMD, Tara Jewels.

with centre stones from the trading division separately to our sister concern in the US. It, in turn, sets the centre stone in the product and supplies the finished goods to the customers. In case trading of diamonds is discontinued in SEEPZ SEZ, we will have to set the centre stones in the product itself and export the final product to the US, thereby making the product liable to a higher import duty on the full value of the product,” said Sheth.

“Round tripping will not happen to countries with import duties. For the consignments going to Hong Kong or Dubai, the government can verify whether value addition is happening,” said Kothari. n

In such cases, we have asked the government to lift the blanket ban and ensure that 90 per cent of these articles are traded within the SEZs and only 10 per cent of the defected ones are re-shipped back to the supplier.

Mines to Market | March-April’ 2014

SHORT NEWS

ALROSA, Russia and GJEPC, India signed MoU India, the world's largest diamond-processing nation and Russia, the world's largest rough diamond producer, have taken a significant step towards greater direct diamond trade between the two countries. India's Gem & Jewellery Export Promotion Council (GJEPC) and state-owned Russian diamond mining firm Alrosa signed a Memorandum of Understanding (MoU) to share trade and statistical data on the diamond trade between the two countries

I

ndia, the world's largest diamondprocessing nation and Russia, the world's largest rough diamond producer, have taken a significant step towards greater direct diamond trade between the two countries. India's Gem & Jewellery Export Promotion Council (GJEPC) and state-owned Russian diamond mining firm Alrosa signed a Memorandum of Understanding (MoU) to share trade and statistical data on the diamond trade between the two countries.

The MoU, inked by GJEPC Chairman Vipul Shah and Alrosa President Fyodor Andreev, is more evidence of warming trade relations between the two countries.

Russia produced 34.9 million carats of rough diamonds in 2012.India imported 163.11 million carats of rough worth $16.34 billion and exported 36.46 million carats of polished diamonds worth $20.23 billion during the calendar year 2013. Total Indian provisional exports of gems and jewellery during calendar year 2013 stood at $36.04 billion.

ALROSA and GJEPC agreed to exchange information pertaining to the development of the co-operation between Indian and Russian diamond sectors, including overviews of the diamond market situation, the Indian and Russian trade figures, information on Indian diamond market research.

Speaking at the Event, Mr. Vipul Shah, Chairman GJEPC said, “India has long sought long-term contracts between Alrosa and the Indian cutting and Mines to Market | March-April’ 2014

polishing industry. With this association, both trade bodies look forward to cooperation and exchange information in the framework of implementation of Kimberley Process Certification Scheme and jointly seek to maintain separate sales of natural and synthetic diamonds and diamond jewellery. This is just the beginning and we look forward to strengthened trade relations between India and Russia.”

Last February, Indian Commerce Minister Anand Sharma brought up the subject with visiting Russian Deputy Prime Minister Dmitry Rogozin. Sharma suggested that the state-owned Minerals & Metals Trading Corporation (MMTC) be made a nodal Indian agency with a long-term contract with Alrosa.

An Alrosa study team visiting India recently stated that that most of the rough diamonds produced in Russia are cut and polished in India. However, direct imports of rough diamonds from Russia to India are modest, with the fiscal 2013 figure standing at some $767 million.

Fyodor Andreev, the President of ALROSA said, “India is one of the major participants of the world diamond market.

The amount of ALROSA rough diamonds sales to Indian companies has been steadily growing for the last 5 years and resulted into $700 mln of sales in 2013. Customers from India

successfully work with ALROSA on the basis of competitive bidding and longterm contracts. The partnership between ALROSA and GJEPC will improve our cooperation with Indian diamond market.”

Alrosa accounts for close on 25 percent of the world output, while the Indian diamond processing industry accounts for some 60 percent by value of global polished diamond output. An estimated 14 out of 15 polished diamonds studded in jewellery globally are cut and polished in India. An Indian think tank recently stated that more direct supplies of rough diamonds to India could easily boost the current figure to between $4 and $5 billion.

The Indian diamond industry has long said that the indirect routing of rough diamonds into India simply adds to cost and increases the complexity of sourcing steady raw material supplies. Direct imports would bring benefits to both Alrosa as well as the Indian cutting industry, Indian diamond dealers say.

Streamlining overall trade procedures could also see increased Indian exports of polished diamonds to Russia. Indian dealers already have a significant presence at the Moscow Diamond Bourse and relations between the diamond dealing communities of both nations are warm and close. Russian buyers have been a steady presence in India and particularly at the India International Jewellery Show (IIJS), one of the four largest gem and jewellery trade shows in the world.

Procedural matters are all that stand between the two countries and sharply increased trade in polished diamonds between the two countries. The engagement between the Commerce Ministries of both nations in sorting out these procedural matters has diamond industry watchers hopeful of a major increase in trade in coming years. n

35

SHORT NEWS

Gold Smuggling Arrests Jump 750% YoY in India

W

hile cases of gold smuggling in India have jumped 265% from 40 in 2012-13 to 146 in 201314, the number of people arrested has shot up by 750%, from 30 in 2012-13 to 255 in 2013-14, data from the Directorate of Revenue Intelligence shows, according to a report published in Mineweb.

"Gold imports through the legal channel have come down considerably. The chorus to decrease import duty is gaining every day, and the recent trade figures are indicative that things have slumped to a new low," said Manish Kedia, bullion trader.

Data shows that gold smuggling cases at the SardarVallabhbhai Patel International Airport in Ahmedabad, have jumped 15 times in the last one year. Around 75% of the gold seized by customs officials at the airport in 2013-14 has been after August 2013, when the Indian government slapped 10% duty on gold imports.

Elsewhere, the value of gold seized has jumped 442% in one year, from $7.4 million (Rs 448 million) to $40 million (Rs 2.4 billion), according to data from the Directorate of Revenue Intelligence, which has been tracking seizures across the country.

36

On April 10, 5 kilograms of gold was seized at the Chennai international airport, while a day earlier on April 9, customs officials had a rich haul of over 15.7 kilograms of gold at the Hyderabad airport, valued at more than $746,716 (Rs 45 million) from two lady passengers travelling from the Gulf. The instances keep on adding every day.

Customs duty on gold, silver and platinum was hiked to 10% in August 2013, in a decision that was expected to rake in an additional $800 million (Rs 48.3 billion) to the central exchequer.

What it did bring in was a surge in smuggling activities, especially in Gujarat. Data shows that while 6.136 kilogram of gold was seized at the Ahmedabad airport in 2012-13, the quantity of gold seized in 2013-14 soared to 28.50 kilograms, an increase of four times.

In 2013-14, the department detected 30 cases of gold smuggling, while in 201213, only two cases of gold smuggling were recorded by the department. In the last three months alone, 18 kilograms of smuggled gold has been seized at the Ahmedabad airport.

Moreover, data shows that of the 28.50 kilograms of gold seized in 2013-14, 21.40 kilogram, which amounts to 75%, was seized between October 2013 and March 2014. The highest seizure of 13.10 kilogram was in February 2014, while in March 2014, 4.99 kilogram of gold was seized by the customs department in Ahmedabad, data shows.

Data shows that gold smuggling cases at the SardarVallabhbhai Patel International Airport in Ahmedabad, have jumped 15 times in the last one year. Around 75% of the gold seized by customs officials at the airport in 2013-14 has been after August 2013, when the Indian government slapped 10% duty on gold imports.

Data released by the Gujarat State Export Corporation Limited too shows that 87 million tonnes of gold was imported into Gujarat in 2013-14, the lowest in the last six financial years.

That happens to be the situation in just one state.

However, it is an important state, for 8 out of 10 diamonds available on the global market are cut and polished in Surat, Gujarat. With India being the world's leading diamond cutting and polishing centre, the diamond polishing and cutting industry in one state earns India several billion dollars in annual exports. The state is also turning out to be the mainstay for most gold smugglers to get ready buyers for their illegal wares.

Indeed, jewellery shops in Gujarat are doing roaring business. Huge quantities of gold smuggled into India are directed to the state to enable bullion traders to carry on their business and circumvent the negligible consignment of legal gold. n

Mines to Market | March-April’ 2014

EVENT

Shree Ramkrishna Export Celebrated 50 years of its Founder Mr. Govind Dholakia's Journey into Diamond Industry

S

hree Ramkrishna Export Celebrated 50 years of its Founder Mr. Govind Dholakia's Journey into Diamond Industry. The event included all associates of Shree Ramkrishna Exports across the globe, together with many other dignitaries from various fields. The Eminent celebration was surcharged by the presence of 18 Diplomats from 9 countries Mr. Alexey Novikov (Russia), Mr. Sergey Kolesnikov (Russia), Mr. & Mrs. Pule Malefane (South Africa), Mr. Philip Mtsweni (South Africa), Mr. France Morule (South Africa), Mr. Richard Bale (Canada), Mr Adul Chotisinakorn (Thailand), Mr. & Mrs. Nat Pinyowattanacheep (Thailand), Mr. Soonthorn Chaiyindeepum (Thailand), Mr. Praphan Samphaiworakit (Thailand), Mr. & Mrs. Pius Dunaiski (Namibia), Mr. Julian Dunaiski (Namibia), Mr. Van Kleunen Eduard (Belgium), Dr. Perks Ligoya (Malawi), Mr. Bothata Tsikoane (Lesotho).

Mr. Boman Irani the most versatile actor from Bollywood hosted the event that includes series of short talks and discussion focusing on the past history & future generation. Of course entertainment was also the part of the show where in Javed Akhtar, the veteran writer, poet and lyricist conveyed the wishes to Mr. Govind Dholakia in the form of a splendid poem. Covering the life long journey & achievements Of Mr. Govind Dholakia, The Book “Nothing to Everything – A Divine Journey” was launched at the event by Industry's prominent leaders. The classicists Pandit Hari Prasad Chaurasia, Pandit Shiv Kumar Sharma, Bhavani Shankar, Dilip Kale, Vijay Ghate & Viku Vinayak Emulsify the atmosphere with Indian classical music that resembled the emotional feelings of Mr.Govind Dholakia.

Mines to Market | March-April’ 2014

SRK Celebrated 50 years of its Founder Mr. Govind DholakiaÆs Journey into Diamond Industry.

Mr. Govind Dholakia in his speech to 1500+ attendees at the Night of 'Celebrating the Legend' acknowledges the contribution of 7000 Associates across the globe that is the engine of SRK and contributed immensely towards reaching 50 years milestone. Addressing old partners - Mr. Bhagwanji Patel (Bhargovi) & Late Mr. Virji Godhani (Godhani Gems), he added “without my brother like partners, reaching this astonishing 50 years milestone would not be possible.”

Govind Dholakia's GOD Fathers, Mr. Navin Mehta & Mr. Shanti Mehta (D.NAVINCHANDRA) shared their experience and relationship with him as “immensely modest, soft-spoken, very well mannered, unassuming and is true example of 'simple living and high thinking'. Mr. Dholakia has a simplicity and humility which instantly endears him to all who come into contact with him. His social dialogues break conventional barriers and build bridges of new human relations in a pluralistic society.

Talking about rich heritage of SRK, Mr. Shreyans Dholakia introduced the future generation and said ultimately the value of our wisdom of what matters to us rests in the hands of Coming Generation. Talking about his father's philosophy and believes

that “a person is a worker if he work with head & Hand, but an artist if he works with Head, Hand & Hearts.” Today we as a current generation accept his philosophy with both hands, and would remember in head forever and also inculcate in coming generation and with all warm greetings from the heart we thank you all for being part of SRK Success.

Mr. Govind Dholakia's milestones journey was marked by Next generation of company presenting him with RollsRoyce Phantom, as an expression of gratitude from descendents, which symbolizes his simplicity & Status conspicuously.

The Comprehensive report prepared by Indian institute of Management (IIM-A) on SRK Corporate Social Responsibility was presented to Mr. Govind Dholakia because of his expertise to solve some of the most pressing societal issues, to make social impact, to create model institutions and inspire others. The Study will constitute as a Part of IIM-A syllabus.

On the auspicious occasion Mr. Govind Dholakia announced to set-up SRK Knowledge Foundation as a tribute to Surat city. Mr. Dholakia wanted to Payback to Surat city in form of a larger than life IKON that stands still even after a Century. With this view in Mind, younger generation of SRK took this pledge to make his dream a reality and provide Surat with a WORLD class Knowledge Centre and center of Excellence. The Foundation will be the first and only of its kind in the world which will impart and widespread Diamond education with tradition at its core. The historical event was all about tantalizing aroma of Mr. Govind Dholakia. n

37

EVENT

Sai Tamhankar Announces Forevermark's Association with Lagu Bandhu Jewelers Only a few, exclusive jewellers; each passionate about creating the finest designs inspired by these exceptional diamonds are eligible to sell Forvermark diamonds. We are glad to associate with Lagu Bandhu Motiwale Jewellers in Thane, as they share a mutual passion for diamonds and understand the intricacies of craftsmanship at the very core of the Forevermark Promise.

F

orevermark, the diamond brand from the De Beers Group of companies has partnered with LaguBandhuJewellers- one of the renowned jewellery houses in Thane, Mumbai, known for its traditional haute couture, as their retail partner.

Renowned Marathi-film actress, Sai Tamhankar unveiled Forevermark Cornerstones and Encordia collection at the Lagu Bandhu Jewellers store in Thane, today. Also present on the occasion were Sachin Jain, President, Forevermark, India along with Dilip Lagu, Managing Director, Lagu Bandhu Jewellers.

On this special occasion, Forevermark unveiled their latest collections.

Comprised of exquisite jewellery pieces, The Forevermark Cornerstones™ Collection honours the shared values of your relationship; at the centre of each piece is a Forevermark diamond that represents the love upheld by this foundation. The four corners of the design represent honesty, trust, respect and appreciation. It is available in a range of exquisite contemporary designs including rings, pendants and earrings.

The ForevermarkEncordia collection is comprised of exquisite jewellery pieces, designed to symbolize the unique and emotional bond between two people.

LaguBandhuJewellers and Forevermark share a mutual passion for diamonds and are inspired by their beauty. Through this

38

association, Forevermark and LaguBandhuJewellers will extend stunning contemporary and traditional designs to their discerning clientele.

Exquisitely designed jewellery pieces with Forevermark diamonds are sure to delight senses of ever woman.

Forevermark only partners with authorised Forevermark jewellers such as Lagu Bandhu Jewellers, who are selected not only as leaders in their field, but also as those who meet the brand's particularly stringent requirements of business, social and environmental integrity.

M r. S a c h i n J a i n , P r e s i d e n t o f Forevermark India states, “Only a few, exclusive jewellers; each passionate about creating the finest designs inspired by these exceptional diamonds are

eligible to sell Forvermark diamonds. We are glad to associate with Lagu Bandhu Motiwale Jewellers in Thane, as they share a mutual passion for diamonds and understand the intricacies of craftsmanship at the very core of the Forevermark Promise.”

Talking about the launch, Mr. Dilip Lagu, Managing Director, Lagu Bandhu Jewellers states, “We are pleased to partner with Forevermark. Forevermark diamonds are the world's most carefully selected diamonds and come from sources committed to the highest standards. With this association we are giving our clientele access to unique Forvermark diamonds in iconic designs and settings.”

To ensure the Forevermark supply chain is deemed responsible at every stage and Forevermark's Pipeline Integrity is maintained, each Forevermark partner like LaguBandhu is required to conform to the Forevermark Integrity Requirements, and is inspected by the world's leading independent auditor, SociétéGénérale de Surveillance (SGS).

Forevermark diamonds are the world's most carefully selected diamonds. Each Forevermark diamond bears a unique inscription at its heart. This inscription is a promise that the diamond has been carefully selected to meet Forevermark's standards of quality and integrity. Less than one percent of the world's diamonds are eligible to become a Forevermark diamond. n

Mines to Market | March-April’ 2014

EVENT

TH

8 KISNA ANNUAL CONFERENCE HELD AT THE HARI KRISHNA CAMPUS, SURAT

K

ISNA, the diamond Jewellery brand of Hari Krishna Group, held its 8th Kisna Annual Conference to felicitate its distributors and also the retailers who successfully completed the “Kisna Privilage Card Loyalty Program” for the financial year 2013-14. The conference was held on Saturday, 26th April, 2014 at the Hari Krishna Campus ground, Simada, Surat (Gujarat), India. More than 5000 people attended the conference.

“Our brand's reach and visibility have increased pan India and is evident from the fact that 6,000 plus outlets in more than 400 cities & towns sell our jewellery. The Campus ground at Surat factory is the ideal location serving two purposes for hosting the 8th conference as (1) number of retailers, distributors and outlets are on the rise warranting a larger space to hold the function and (2) the retailers & distributors could visit the manufacturing units where these diamonds and Jewellery are manufactured,” said Mr. Ghanshyam Dholakia.

The famous Brand guru, Jagdeep Kapoor, the Brand Consultant to KISNA and Sayali Bhagat, the Brand Ambassador of KISNA were present at the occasion.

A perfect combination of prizes, entertainment & fashion sequencesset the tone of the evening. Big prizes like BMW, Mahindra XUV to Bikes, scooters and many more were given away to lucky winners. n Mines to Market | March-April’ 2014

39

TRADE SHOW

Hong Kong Show Concludes on Upbeat Note

D

espite reports of a slowdown in Chinese luxury spending, the mood at the Hong Kong International Jewellery Show, held March 5–9 at the Hong Kong Convention & Exhibition Centre, was upbeat, as the show welcomed scores of international visitors, including a first-time delegation of Italian vendors representing the machinery and technology sector.

For the past three decades, the March show, organized by the Hong Kong Trade Development Council, has hosted finished jewelry vendors and loose gem and pearl dealers in a single venue. This year, organizers introduced a “two shows, two venues” format with the debut of the HKTDC Hong Kong International Diamond, Gem & Pearl Show, held at the AsiaWorld Expo venue near the airport March 4–7.

“We've seen spectacular growth in the last five to six years and there's always a huge demand for more space,” said show chairman Lawrence Ma. “The last two to three years, we've been discussing the

40

AsiaWorld Expo at the airport. It's a good move this expansion. As long as we treat exhibitors fairly, it's a good way of segregating the show.”

“We're excited to break new records,” Ma continued. “This is the world's largest spring jewelry platform.”

With a combined total of 3,850 exhibitors from 53 countries and regions—up from 3,341 exhibitors in 2013—the two shows spanned 123,000 square meters, or 403,543 feet, and featured numerous international pavilions and salons, including the World of Glamour, where Hong Kong–based manufacturers showed their wares; the Hall of Extraordinary, spotlighting prestigious brands known for high-value jewels; and the Hall of Time, home to vendors of fashion watches.

The merchandise on offer ran the gamut, from a locket-style carved jade pendant traced to the Qing Dynasty and valued at 300 million HKD (about $38.6 million), on display at Fook Wing Tong Jade & Treasure, to affordable fashion jewellery,

like the colored stone Butterfly collection from Lorenzo, a Hong Kong manufacturer with a factory in Shenzhen, China.

At Aaron Shum Jewellery, the big news of the fair was its agreement with Chow Tai Fook, the world's largest jeweler, which, as of April 1, will be the exclusive distributor of its patented Coronet diamond jewelry collection in Hong Kong, mainland China, Macau, and Taiwan.

“Diamonds are forever; Coronet is for everyday,” Shum, wearing his signature bowtie, told the crowd gathered in front of his booth on day one of the fair.

In terms of international exhibitors, the Italian presence at the Hong Kong show was significant, with 215 exhibitors representing the finished jewelry and technology sectors composing the largest of any country's delegation to the show.

For the first time, VicenzaOro T-Gold, the technology component of the Italian trade fair, participated in the show, suggesting that, for the 45 exhibiting Italian companies, the prospect of selling their tools and machines to Chinese customers outweighed the threat of competition from them.

“In this kind of industry, the globe is smaller and smaller than some years ago,” said CorradoFacco, managing director of Fiera di Vicenza. “We have an opportunity to build something together, instead of compete. Here we are in the cathedral of the jewelry business in Asia. It's the right platform for Italian companies.”

“So we are not competing anymore—well, okay, we compete on products, beauty, collections—but we have to promote the business globally and for that, we have alliances,” Facco concluded. n

Mines to Market | March-April’ 2014

TRADE SHOW

Jewellery & Gem Fair Europe 2014 closes with positive results Dates for the 2015 show announced

T

he Jewellery & Gem Fair Europe 2014 has closed its doors with positive results. More than 6,000 jewellery professionals attended the launch event, which brought together suppliers, press, leading industry and governmental associations. Of this number, over 4,280 were leading trade buyers, with the leading visiting countries being Germany, Switzerland, Italy, Belgium and Brazil. The show organisers, UBM,were delighted with these figures, viewing this as a substantial and strongbase for growth for years to come. Wolfram Diener, Senior Vice President of UBM Asia comments, “The vast majority of our exhibitors and traders view the exhibition as a success. We are very pleased with the positive feedback from the market and see this as a confirmation that the Jewellery & Gem Fair Europe is now listed as an important industry event in the jewellery calendar.

At the same time, of course, we are inspired to organise an even higher quality show for 2015”. A specifically favourable measurement of the positive acknowledgement of the fair is the

advanced bookings from the exhibitors.

The demand is so great that the Jewellery & Gem Fair Europe 2015 will expand into an additional hall at Messe Freiburg.

VerenaRaub, Distribution at Bellaluce, Germany, said “Our expectations were really exceeded. We hope the interest of the international market will increase over the next few years. Following these positive results of the Jewellery & Gem Fair Europe, we will certainly participate again next year”.

The next edition of the Jewellery & Gem Fair Europe will be held from Sunday 22 March to Wednesday 25 March 2015. The show will begin on a Sunday, to allow smaller regional jewellery businesses to attend easily.

TimoRichardon from Carl Schaefer, Germany, commented, “It is clear that the show organisers are very experienced and are willing to do whatever is necessary to ensure the success of the participating exhibitors”.

Mines to Market | March-April’ 2014

The unique positioning of the event for the medium-priced sector, the international range ofexhibitors represented and the quality of the visitors were praised throughout the fair. UBM is filling a much needed gap in the European market. JGF Europe is clearly gaining support from across the region, Ines Lopez Sharma, Managing Director of ILR Collection, Germany, states “We were immediately impressed with the idea of an international fair in Freiburg. Even before the event, the expectations were very high. These expectations were confirmed, especially in the first two days of the fair. The visitor profile was very international”.

“Germany is the biggest and most important market for us but we are already very well positioned within this market, so we are looking for new international customers. The first day at the Jewellery & Gem Fair Europe was very good. A lot of people visited our booth and have been interested in our handmade Jewellery. I think there lies huge potential in a trade show like this and for us it's the right place to do business“,MarcinZaremski from Mateusz Zaremski Brand, Poland. n

41

DESIGN TREND

M.B. Jewellers and Pakistani designer Faraz Manan collaborate for a joint show at India Runway Week From Left Pakistani Designer Faraz Manan and Gunjan Soni, Mananaging Director, M.B Jewellers and Sons.

MBJ is well known for their specialization in designer Diamond jewellery, Rose Cut Antique, Kundan-Jadau, Polki and Gold jewellery.

They are among India's biggest exporters and wholesalers with their own state-of-art manufacturing facility.

M

Picture of India Runway Week Show.

.B. Jewellers and Sons (now known as MBJ), a prominent name in the Indian jewellery design and creation space has collaborated with leading Pakistani fashion designer Faraz Manan for his collection at 'India Run Way Week'.

The India Run Way Week is organized by Indian Federation for Fashion Development and is a prominent fashion event in the country. MBJ and Faraz Manan showcased their latest collection on the theme JEWELLED NAWABI. The joint show was received with great enthusiasm and admiration by audiences and fellow designers alike.

Pakistan based Faraz Manan is a leading fashion designer based out of Pakistan, who is well known for blending western aesthetics with eastern sensibilities. He has carved a niche for his design concepts and is today one of the most sought after

names in Pakistan for Couture, Bridal Wear and Luxury Pret. Faraz has designed for a number of Bollywood stars including Kareena Kapoor, Karishma Kapoor etc.

MBJ is well known for their specialization in designer Diamond jewellery, Rose Cut Antique, Kundan-Jadau, Polki and Gold jewellery. They are among India's biggest exporters and wholesalers with their own state-of-art manufacturing facility.

Speaking on this occasion Faraz Manan, Pakistani fashion designer said, “I am excited to partner with MBJ to showcase this collection at India Runway Week.

India and Pakistan have a shared cultural heritage and our design ethos, our emphasis on fine workmanship, the use of colours and the traditional arts are quite close to each other. The jewellery by MBJ complemented and elevated each of my creations to another level. I am sure that this collaboration will be the start of many more such joint shows.” Faraz also expressed gratitude for the warm reception he received from audiences and co-workers while in India.

Gunjan Soni, Managing Director of MB Jewellers and Sons said, “We are delighted to showcase our jewellery with well known designer Faraz Manan's creations. In many ways this was a match made in heaven. We look forward to more such collaborations in future.”

Gunjn Soni said that MBJ has built an exceptional reputation for providing their customers with the finest crafted diamond jewellery and is proud to have helped numerous customers to find sophisticated and stylish gems for many of life's greatest and most meaningful moments. n

About MB Jewellers and sons: M.B. Group of Jewellers or MBJ as they are known today, are a leading name in Indian jewellery space, with a presence of over a century. Since 1897, they have upheld the highest standards of craftsmanship and business ethics alike. Trusted across India and around the world as torchbearers of the royal standards of Ratangarh in Churu in Rajasthan and combining it with the best tradition of jewellery craftsmanship of Bengal, MBJ has been ensuring quality and novelty through seven generations.MBJ is well known for their specialization in designer Diamond jewellery, Rose Cut Antique, Kundan-Jadau, Polki and Gold jewellery. They are among India's biggest exporters and wholesalers with their own state-of-art manufacturing facility. Having entered retail market in 1982, MBJ today has four contemporary styled showrooms across the country in Kolkata, Jaipur and Delhi.

Picture of India Runway Week Show.

42

Mines to Market | March-April’ 2014

DESIGN TREND

Varuna D Jani Presents Exquisite Fashion Show With Her Line of Jewellery VOW ~ Affiliates with Association of Inner Wheel club of India to support women~

V

aruna D Jani- a leading adornologist and jewellery designer hosted a spectacular jewellery fashion show at the South Asia rally of Association of Inner Wheel club of India (A Rotary club body) recently at Renaissance Powai. A two day affair held between 8th and 9th March, the third edition of South Asia rally was named “Women Power Unlimited” and focussed on activities surrounding women empowerment and upliftment. Present on the occasion were Aanchal Gupta, Director, Arts in Motion, well known socialite Chhaya Momaya, Pushpa Suryamurthy, Association President and around 1000 Inner Wheel members. Varuna D Jani was also felicitated for her outstanding contribution towards the cause of women empowerment as she has been donating 30 % of her earnings for this cause.

Varuna D Jani is a strong believer of Woman Power and has always encouraged initiatives that are centred on issues affecting Indian woman.

So it was only natural for her to contribute to the whole cause and thus she decided to partner with Inner wheel club of India. The Rotary club association has continuously strived towards creating awareness, spreading knowledge and fighting evils like female foeticide, starvation, violence against woman and work towards betterment of women in the society.

Violence and abuse of women is not new to India. Even the new emerging India has not been able to bring respite to our women from suppression, violence, molestation, female infanticide and many such evils prevalent in the society. The South Asia Rally this time has primarily focussed on Woman Power and believes it's unlimited. The fairer sex has determination and courage to fight the world and emerge as a winner.

Aanchal Gupta, Varuna D Jani and Chaya Momaya all sporting Varuna's VOW jewellery.

Varuna D Jani reiterated the mission through her unique fashion show modelled around her collection VOW (Very Own wish). This versatile collection brings to life the possibility of a beautiful crafted piece of jewellery whose design can be altered to produce a different look for the wearer or put to multiple uses. Each VOW ornament comes with a base and multiple enhancers. Each multifunctional enhancer brings out a new facet of today's woman; varying combinations construct a new piece and add that perfect touch of glamour to every outfit. One can choose from a series of element which fit perfectly together and can be combined to create the desired piece of jewellery.

Speaking about the show, Varuna said, “Each woman can be what they want to be. It's their very own wish (VOW). Woman has the power to bring a change, they are the creators and hence they have the ability to fight for their own rights. The VOW jewellery range is multi functional, multi faceted yet extremely beautiful. It signifies the lady of today who is no lesser human being any more. All they need is to feel confident and good about them. My fashion show is to spread the message of 'Be VOW'- Be beautiful, be the woman that you are.”

Pushpa Suryamurthy, Association President added, “The third South Asia Rally has delegates from all round the world and we have received an overwhelming response. I am glad that our efforts towards women empowerment are getting noticed. I thank Varuna for hosting such a glamorous evening for us and supporting us in our mission.” n Model showcasing jewellery at the fashion show.

Mines to Market | March-April’ 2014

43

DESIGN TREND

Ranka Jewellers Reveals 'Nouveau-Traditions' Design Trend in Platinum With Vidya Balan Reinterpretation of a traditional Indian motive in a modern platinum way gives each piece of jewellery a distinctive meaning. Platinum, the rare and eternal precious metal in itself personifies elegance and adding a meticulously crafted platinum piece to your ethnic attire will give it a contemporary fresh appeal.

B

ollywood's leading actress, VidyaBalan, has always created an iconic statement with her traditional style. This season, Vidya Balan dons a distinct look with the vintage meets modern range of precious platinum jewellery by Ranka Jewellers.

Considered a typical Indian beauty, Vidya has distinct features to carry off almost any ethnic wear and here she is seen seamlessly blending in the modern with the tradition with aplomb. The new range of vintage inspired jewellery in the modern precious metal platinum follows the design hook of 'Nouveau Traditions', a balance of the old world charm and modern outlook taken from the design aesthetic direction of 'Luxury Archaeology'. The precious metal's inherent qualities modestly reflect its beauty on Vidya's striking appearance.

Vidya Balan shares her thoughts on platinum jewellery, “Reinterpretation of a traditional Indian motive in a modern platinum way gives each piece of jewellery a distinctive meaning. Platinum, the rare and eternal precious metal in itself personifies elegance and adding a meticulously crafted platinum piece to your ethnic attire will give it a contemporary fresh appeal.”

Vastupal Ranka, Director, Ranka Jewellers says, “Platinum speaks to today's generation and more and more of the younger audience is attracted to this metal for its intrinsic qualities of being unique, classy and elegant. It is a modern metal that has an exclusive style sought after by the discerning lot who are always on the lookout for exclusivity in their jewellery. Women today are adept at balancing the two worlds, navigating modernity with values of tradition and platinum designs offer you just the right blend.”

Precious platinum is known for its white luminous luster and eternal qualities. One of the purest forms of metals when crafted to jewellery, which does not fade nor tarnish; it will retain its white colour for a lifetime. Nothing brings out the brilliance in a diamond better than precious white platinum and its innate strength holds precious stones firmly and securely for a lifetime.

The platinum jewellery range available at Ranka Jewellers ranges from finely crafted earrings, pendants to rings, bracelets, bangles, necklaces for women and chains, bracelets and rings for men. They also have a wide range of platinum love bands for couples that symbolises the beautiful emotions surrounding the journey of endless love.

Price Range: The range of precious platinum jewellery at RankaJewellers starts from Rs. 15000 onwards.

In order to assure consumers of the purity of platinum jewellery, Platinum Guild India Pvt. Ltd. has appointed Underwriters Laboratories (UL Inc, USA) to audit and monitor its Quality Assurance Scheme. Under this scheme, all authentic platinum jewellery in India comes with a Quality Assurance Card and bears the purity hallmark of “Pt 950” stamped inside the piece. This also serves as an assurance of a 'buy back' programme. n

About RankaJewellers:

Ranka Jewellers reveals the ‘Nouveau-Traditions’ design trend in platinum with the attractive Vidya Balan

44

RankaJewellers is a 131 year old establishment, and the unparalleled supremo of the jewellery industry in Pune. This family business, now managed by the fourth generation of the Ranka family, is today the most reputed name not only in Maharashtra but the whole of India.

RankaJewellers are the pioneers of KDM jewellery in India and have introduced departmentalisation in jewellery showrooms. They are the first jewellers in Maharashtra to be awarded with an ISO Certification.

Their experience of generations and a large family of happy customers has resulted in six huge showrooms in Pune. The RaviwarPeth Showroom is their flagship store, which then extended to Laxmi Road in 1992, Karve Road in 1999, Pimpri-Chinchwad in 2008, Hadapsar in 2010 and Sinhagad Road in 2012.

Mines to Market | March-April’ 2014

NEW LAUNCH

Entice introduces Kathaa- 'The story of Jewels' -Resplendent Kundan Polki Collection for generations to cherishRow Kundan Polki Choker with green enamel.

Kundan polki elegant earings with green enamel.

Row Kundan Polki haar with floral Kundan Polki work.

E

ntice, the fine jewellery brand by the century old KGK group, introduces Kathaa- a Kundan Polki jewellery collection. The collection entails the story of jewels, as the name suggests. Entice's Kathaa collection is a tribute to jewellery, giving away the message that each jewellery piece has a story to tell, to enlighten, to write and to be rewritten; making each jewellery piece from the collection-an eternal prized possession for generations to cherish!

The life journey of the jewel is in various phases, starting from its conception when the jewellery gets designed in the mind of the designer; followed by the manufacturing process where honed with skill and expertise, it takes shape. It is the third phase, which is the most special on which its fate depends. Third phase marks a new beginning as the piece is bought by its admirer and plays an important role in laying down foundations or nurturing the most cherished relationships on important occasions like wedding, Valentine 's Day, anniversary or birthday. The gleam and delight it brings on a woman's face is its gratification, turning its life journey all the more meaningful.

Entice's jewellery comes with unique promise that they will 'last forever', and hencethere is an additional fourth phase, to which all emotions are attached. Under fourth and final phase, the possessed heirloom is passed down to another generation, making it not just a transfer of the jewellery but of the memories attached with it. Each piece from the collection is a blessing to the coming generation and a commitment of its timeless appeal by Entice!

Because you deserve the best, Entice's Kathaa collection has been handcrafted using best of the Polkis (uncut diamonds), fused with the best quality gemstones and pearls. The collection embraces the age old craft of kundan polki jewellery, and styled to suit the modern lifestyles with neckpieces varying from multi row to single row; elaborate earrings and wrist wear in breathtaking patterns. With each piece in the collection flaunting intricate meena (enamel) work on the backside, a piece from Kathaa is a must have in the jewellery collection. n

Kundan Polki haar with 3 strings of Kundan polki and 2 strings of emerald beads.

Floral Kundan polki earings with pearl drops.

About Entice Jewellery: Taking the rich Indian jewellery heritage and enhancing it with a contemporary twist, Entice Jewellery offers a classical yet contemporary style; boasting an elegant rich look. 'Entice' was launched by KGK group at the turn of millennium in 2004 in Hong Kong. Following a huge success with boutiques in Hong Kong & China and with an impression that India is now modern by design, KGK launched its first boutique of 'Entice' in Jaipur in 2009. Latest additions are the two new exclusive boutiques of Entice in New Delhi and Mumbai, launched in 2012. Entice today has 16 standalone boutiques in countries including Hong Kong, China, UAEand India (Jaipur, Mumbai & New Delhi).

Entice designs meet the mounting demand for an internationally aesthetic look, lending a unique artistic blend to their pieces. Associated by the strength of KGK, Entice aims to create an unparalleled position of credible leadership by providing unmatched customer delight and exceeding customer expectations at every opportunity with its precious gems and jewellery.

Mines to Market | March-April’ 2014

Row Kundan Polki rani haar.

45

NEW LUANCH

New Corporate Office of Perry Impex Pvt. Ltd. in The Capital, Mumbai The Inaugural Function of New Corporate Office of Perry Impex Pvt. Ltd. took place on 17th April, 2014.

Rasik P. Mangukiya

T

he opening of New Corporate Office location for the Company's Diamond Business in BKC is an important step towards realizing its long term vision for growth. The new office will maximize the service exposure the Company currently offers to its clients.

The newly opened office building is located at 404, B Wing, 4th Floor, The Capital, BKC, Bandra (East), Mumbai 400051.

46

This smooth transition into the new office space at BKC was a fortunate find and a perfect place to continue delivering business value to its clients and untiring commitment to its clients and also strengthen the development of new business opportunities.

Now the Company will be able to offer a greater level of exposure and experience in the e-business market to both existing as well as new clients.

Shri Rasik P. Mangukiya, M.D.,C.E.O. and Shri Ramesh P. Mangukiya, Director of Perry Impex Pvt. Ltd. alongwith well known personalities from Diamond Industries such as Shri .Vallabhbhai Lakhani, Chairman of Kiran Exports, Shri. Dilipbhai Lakhi, Chairman of Lakhi Group Of Companies, Shri.

Ghanshyambhai Dholakia of Hari Krishna Export& Shri Rahulbhai Dholakiya of Shri Ram Krishna Export, and many more dignatories graced the occasion. The celebrations finished with a mocktail for the guests who then had time to exchange their views about the development and the future role of the Office. n

Ramesh P. Mangukiya

About Company : Mr. Mangukiya had put his footprint at his young age & by then his creative mind built up the empire of Perry Impex Pvt Ltd. It's all thanks to Mr. P. M. Mangukiya's great initiative, to build up next generation & simultaneously integrated development for business of Diamond, With its 30 years history, known for its beautiful cut diamonds, now the next generation Mr. Rasik Mangukiya runs Perry Impex Pvt. Ltd with the same set of principals put forth by his father.

Perry Impex Pvt Ltd is a well known reputed company for their gracious presence in the World of Diamonds due to their total quality product & consistency in supply of integrated product to cater their worldwide customer base, we have extensive range of Diamonds which includes includes WHITE, O W, T T L B & D A R K B R O W N DIAMONDS Our vision to expand network all over India and International Diamonds destination like Belgium, Hongkong , UAE, USA, etc. we will have prominent footprints in coloured Diamonds and Diamonds Jewellery Industry. We will be in Bombay Stock Exchange / National Stock Exchange listed by 2016. Twenty Years from now , we will be amonsgt the top three companies dealing in Diamonds industry.

Our mission to create best for Customers , to maintain ” Customer is God “and ” Customer Satisfaction is not but habit concert at all level, to be a world class company , to be a corporate with best Social Responsibility & Corporate Governance, to implement best policy for satisfaction to all. n Mines to Market | March-April’ 2014

NEW LAUNCH Cornerstones Ear Rings

Forevermark introduces a special collection of Cornerstones on the auspicious occasion of Akshaya Tritiya Cornerstones pendant

M

umbai: has introduced a new range of Cornerstones collection to celebrate the auspicious occasion of Akshaya Tritiya. This beautifully designed collection will be available at the Forevermark authorized jewelers across India.

Akshaya Tritiya is an important day in the Hindu calendar, considered to be highly auspicious as it marks the beginning of a new year. It is believed that anything special purchased on this day brings success and good fortune.

Many Indians love to buy jewellery on this day as a symbol of prosperity, and to mark this special day, Forevermark has introduced the new Cornerstones collection that includes pendants, rings, earrings and bracelets, all set in white gold.

Cornerstones™ from Forevermark has been created in a classic and minimalistic style. Each piece features a Forevermark solitaire diamond held fast by four elegantly adorned prongs.

Suitable for relaxed daytime style as well as evening glamour, Cornerstones™ from Forevermark will add a little more sophistication to any outfit. With elegance in its character, each piece is made to accentuate a woman's beauty.

Celebrate this occasion with Forevermark Cornerstones and add a sparkling touch to your new year. n

Akshaya Tritiya is an important day in the Hindu calendar, considered to be highly auspicious as it marks the beginning of a new year. It is believed that anything special purchased on this day brings success and good fortune.

Cornerstones Ring

Mines to Market | March-April’ 2014

47

NEW LAUNCH

Prosperity blooms with Kama Jewellery this Akshaya Trithiya Launches “Fleur” collection of fine diamond jewellery with Flower motifs for the festive season

Stunning ensamble with floral motifs accented wth diamonds and natural pearl.

5%– 10% discounts on purchases of diamond jewellery on www.kamajewellery.com

A

kshaya Trithiya is one of the most auspicious days on the Hindu calendar to mark new beginning & investments. To help bring in more prosperity Kama Jewellery, the retail arm of Kama Schachter, one Asia's top 10 & most preferred manufacturer & exporter launches an exquisite new range of diamond jewellery – Fleur Collection. Inspired by nature this collection is an assortment of pendants, ensembles, cocktail rings and earrings. The new floral inspired collection of Kama is an attempt to turn nature's treasures into beautiful jewels capturing the delicacy of flowers in 18kt white, yellow & pink gold. In addition to this Kama also announced special offers for its online customers. Avail 10% off on all purchases of diamond jewellery above Rs.30,000 and a 5%off on all purchases of diamond jewellery below Rs.30,000.

Floral is the perfect spring-summer theme & when it comes to jewellery nature inspired jewellery, Floral is the new trend. Every creation in this collection is a statement piece, a perfect combination for both traditional and contemporary flair. The romance in the Fleur collection is created with the details of beautiful flower motifs embellished with brilliant cut diamonds, natural pearls & precious colored stones like emeralds and rubies.

Talking about his expectation for this festive season, Colin Shah, MD, Kama Schachter said:“Akshaya Tritiya is one of the golden seasons for jewellers across country as purchase of Gold & Platinum jewellery reaches optimal level on this day. The consumer confidence is improving and the buying mood is buoyant right now. The price of the metal has also taken a slight dip in the last few days. As a manufacturer our order books have been fairly good for the season and we are working round-the-clock to complete orders on time. As a retailer with our presence both online and offline at Kama we are being optimistic about a 25 – 30% collective increase in jewellery sales”.

“This Akshaya Trithiya, we invite our customers to bring home endless prosperity with diamond jewellery from Kama. Log on to www.kamajewellery.com , for an unparalleled jewellery shopping experience or be our guest at Kama's boutique in Mumbai.” Mr.Shah concludes.

Kamajewellery.com offers an unparalleled jewellery shopping experience. With more than 1000 exquisite diamond jewellery options to choose from, customers are spoiled for choice. Starting from a range of Rs.5500 upwards, the web store not only offers a wide range of jewellery options at different price points but also serves as a one-stop-information-guide for knowledge on Solitaires, Gold or Platinum. Detailed information about the types of diamonds, sizes, shapes, setting, finish, quality and much more is put together by experts at Kama Schachter for the consumers on the website. The collection on kamajelwelley.com is very competitively priced, GIA certified and come with a “Lifetime Exchange” feature. Kama offers easy payment options & free shipping across the country with a 15 days return policy. n

Bracelet with florals accented with diamonds in 18kt white and rose gold.

48

This Akshaya Trithiya, we invite our customers to bring home endless prosperity with diamond jewellery from Kama. Log on to www.kamajewellery.com , for an unparalleled jewellery shopping experience or be our guest at Kama's boutique in Mumbai.

About Kama Schachter: Kama Schachter is amongst the top 10 diamond jewelry manufacturers out of Asia. Established in 1996, we have 18 years of experience in manufacturing, marketing and in distribution of diamond jewellery in all major markets. In 2007 Kama entered into a partnership with Leo Schachter Diamonds and became Kama Schachter. What began as an entrepreneurial venture in a modest factory in the distant suburbs of Mumbai has grown multi-fold and today is a successful jewellery business model that is spread across 3 state-of-the-art large factories in India and China, a diamond sourcing office in the heart of Mumbai, has 8 offices globally in India, USA, Japan and Hong Kong and employs a strong multi-cultural workforce of 1000 employees.

Our focus is India, US & China and in India. With the launch of our exclusive flagship brick and motor and online store in Mumbai, the company has ventured into the retail market in India in the year 2012. Kama is a BPP compliant company, which ensures highest professional, ethical, legal, social, environmental, and safety standards. As a leading manufacturer and exporter of diamond jewellery, Kama has won several accolades, the most prominent being Largest Exporter of diamond jewellery outside Seepz for 4 consecutive years, Emerging SME Award and the Udyog Ratna Award.

Mines to Market | March-April’ 2014

PROFILE

The Best Diamond Manufacturers across the Globe : Samarth Diamond The Origins Since its inception in 1987, Samarth Diamond grew to be one of the best diamond manufacturers across the globe. Founded by Dinesh Patel and later joined by his brothers, Dashrath Patel and Govind Patel, Samarth Diamond has shifted from executing job works for other trading companies before the financial crisis to being a manufacturer of high quality diamonds after the crisis.

Expanding beyond horizons have always been a goal for Samarth Diamond. Not just in Gujarat, or Mumbai, or India, but today Samarth Diamond caters to the customer base in the Europe and looking at venturing into the Middle Eastern markets and Asian markets such as Japan and Hong Kong. Someone somewhere is always using Samarth's diamonds.

The Products Samarth Diamond specialises in niche range of diamonds and thus is renowned for its high quality diamonds of clarity IF – VSwith seldom offering I clarity upon request.Their diamonds are colourlessfalling in the range of D-H colour.Excellent and perfect cut is achieved in the premium price range. But the Indian make diamondsare also of better cut because of the topquality of rough sourced and the modern and cuttingedgetechnology used. Samarth Diamond plays in small size with range between 0.003 to 0.15 carats primarily.

The Manufacturing Around more than 2000 craftsmen, supervised by 500 managers, create the precious diamonds in Samarth Diamond's manufacturing facility in Visnagarand surrounding areas, small towns in the state of Gujarat in Western India.The best rough is procured from DTC sightholders in Antwerp, Belgium ensuring the guarantee of quality down the manufacturing chain. The main head office of Samarth Diamond is located in Mumbai, India to aid ease of access for the customers.

The manufacturing facility of Samarth Diamond is technically and competently sophisticated with modern equipment such as Bruter, Laser scanning and 3D planning technology, high-precision CNC machines and other computerized equipment which are united with traditional Chapka skills of the workmen there. Streamlined

Mines to Market | March-April’ 2014

manufacturing processes add to the consistent quality and efficiency in every single step of manufacturing process. Inhouse designed traceability technology guarantees the monitoring of each stage of manufacturing process and thus the assurance in quality of every diamond.

In The International arena With more than 80% of its business originating from across borders, Samarth Diamond works with its European Alliance, Craft Diamonds bvba, in Antwerp, the world's leading diamond trading hub. Opened in 2013, Craft Diamonds bvba caters to the needs of the European customers directly marketing the product of Samarth Diamond as a premium quality brand. It also provides proximity for the European customers. It also facilitates localized marketing and branding of Samarth Diamond's products.

Samarth Diamond also plays a proactive role in international exhibitions and trade fairs. On 20-22 March, 2014, they have taken part in the first ever Global Gem & Jewellery Fair in Dubai. The show helped them understand the market potential of the UAE and tap into the UAE market. On 01-04 April, 2014, they have participated in Europe Jewellery & Gem Fair in Germany. Conducted parallel to the Basleworld Show, this exhibition attracted visitors from across the globe and opened up new ventures into the growing markets. Samarth Diamond has once again proved itself to be a premium manufacturer of high quality diamonds not just in Eastern but also in Western markets. Aiming to be the prime supplier to the Swiss watch brands, high end jewellery manufacturers and world-wide jewellery brands, Samarth Diamond is expanding with its aggressive market expansion strategy and skilful management team.

The values, ethics and CSR Samarth Diamond claims they not only change diamonds but they change lives too. They provide zero profit meals to a large part of their employees who also enjoy affordable transportation services with the company's 25 vehicles.

Training on all fronts such as technical, social and life skills, is given to the employees on regular basis. Samarth Diamond does not encourage child labour or any type of discrimination towards any employee.

Samarth Diamond organises health check-up camps, such as eye check-up, dental check-up, diabetes check-up, blood donation and many more for its employees. Samarth Diamond does not encourage conflict diamonds, illegal sourcing or labmade diamonds. n

49

FOREVER CELEBRATION

FOREVERMARK CELEBRATES 1,000,000 INSCRIPTIONS

T

oday Forevermark, the diamond brand from the De Beers group of companies announced an important milestone as the 1 millionth Forevermark diamond is inscribed at the Forevermark Diamond Institute in Antwerp.

Stephen Lussier, Forevermark CEO comments “This is a significant day in Forevermark's young history. Inscribing 1,000,000 Forevermark diamonds in the six years since launch is a huge achievement and is testament to the appeal of the brand amongst a growing number of consumers.”

Stephen Lussier Forevermark CEO

We are delighted to be able to say that there are now 1,000,000 inscribed Forevermark diamonds that have met our stringent criteria. Inherently beautiful, sourced responsibly and of the highest quality, these are diamonds consumers around the world can be proud to own and wear

The inscription is the core of Forevermark's proposition and represents the brand's promise of a commitment to rare, beautiful and responsibly sourced diamonds. Only when a diamond has met Forevermark's strict standards can it be inscribed with the individual inscription number and the Forevermark icon. Stephen Lussier adds, “The fact that every inscription number is unique and always identifiable as your very own, adds to the allure of our brand offering.” Invisible to the naked eye, it is made using proprietary technology from the De Beers group and can only be seen with a special Forevermark viewer.

Response to the brand has been so strong that Forevermark recently announced the opening of a second Forevermark Diamond Institute facility in India in early 2015 to meet continued demand for inscription and grading services.

Lussier summarises, “We are delighted to be able to say that there are now 1,000,000 inscribed Forevermark diamonds that have met our stringent criteria. Inherently beautiful, sourced responsibly and of the highest quality, these are diamonds consumers around the world can be proud to own and wear.” n

50

Mines to Market | March-April’ 2014

EDUCATION EDGE

GIA Trains 300 Gem & Jewellery Professionals The Institute collaborates with the GJSCI’s STAR Scheme to help develop workforce

S

ince the start of 2014, GIA (Gemological Institute of America), in collaboration with the Gem and Jewellery Skill Council of India (GJSCI), has trained nearly 300 professionals in Mumbai and Surat through the Institute’s globally recognised gem and jewellery education programmes. The initiative, which is part of the GJSCI’s STAR Scheme, aims to develop a qualified workforce throughout India. GIA plans are currently underway to expand offerings to centres throughout the country and to train an additional 300 people over the next three months.

“We are pleased to support GJSCI’s initiative to help develop a skilled workforce. GIA has always reinforced education as a means to drive the industry and create opportunities. A trained staff with upgraded skill sets can improve productivity and the quality of work,” said Nirupa Bhatt, managing director of GIA in India and the Middle East.

“The positive feedback about our diamond courses has been tremendous, and we plan to expand the scope of training to include jewellery design, retail and other courses.”

GIA Class conducted for Shairu Gems at their factory under the GJSCI Scheme

GIA-GJSCI Students undergoing the third party assessment.

The National Skill Development Council – whose mission is to narrow the existing gap between the demand and supply of skills throughout India – identified the gem and jewellery industry as a high growth sector. As a result, the GJSCI was established in July 2012 to fulfill the growing need for trained employees.

“A qualified workforce is necessary for business growth.

GIA’s world-renowned training has helped further GJSCI’s mission by upgrading skills, knowledge and qualifications in the global gem and jewellery market”, said Prem Kothari, chairman of the GJSCI. As an affiliated training partner of the GJSCI, GIA will offer courses in gemstone grading, design, retail sales and more.

An advanced polished diamond assorting course was the first GIA offering in the STAR scheme. Courses are taught by the Institute’s qualified instructors, and attendees receive world-

class training. Various companies thus far, including Shri Ramakrishna Exports, Hari Krishna Exports, Shairu Gems and Karp Impex, have added value to their businesses by participating in these training courses.

“GIA’s training combined theory with practical application, which helped with technical concepts like cut, symmetry and ways to identify synthetics and treatments. GIA’s qualified instructor and student handbook added a lot of value to the overall experience,” said Alpesh Shah of K Girdharlal. “GIA’s training was informative and skill enhancing for our participants. The course was systematic and easy to understand through step-by-step learning,” added Siddharth Mehta of Shairu Gems. n

GIA-GJSCI Class conducted for SRK at GIA Mumbai Campus.

Mines to Market | March-April’ 2014

GIA-GJSCI Class conducted for K Girdharlal at GIA Surat Campus.

51

EDUCATION EDGE

Globally Recognised GIA Programme Successfully Debuts in Chennai Eleven students earn Graduate Diamonds diploma

G

Ms. Nirupa Bhatt adressing the students, along with the dignitaries from Chennai Industry

Part of GIA’s mission has included reaching out to key centres across India with quality vocational courses that teach relevant and practical concepts in the gem and jewellery industry

IA (Gemological Institute of America) recently hosted its first Graduate Diamonds (GD) commencement ceremony in Chennai.

Eleven students – with backgrounds ranging from retail to wholesale – graduated in the presence of prominent members of the Chennai gem and jewellery industry and local trade association officials.

Special guests included Jayanthilal Challani, President of Madras Jewellers & Diamond Merchants' Association (MJDMA); Anand Padmanaban of NAC Jewellers; Babu Immanuel of OKJ Jewellers and former president of

MJDMA; Mahaveer Bothra, –managing director of White Fire; and Abhay Mehta, managing director of Mehta Jewellery. The dignitaries handed out diplomas and offered advice to the new graduates.

The GD Diploma equips students with comprehensive knowledge of GIA’s International Diamond Grading System™ and provides in-depth training in the 4Cs (Colour, Cut, Clarity and Carat weight) of diamond quality. Students learn about advanced gemmological techniques including how to detect and identify synthetics, simulants, treatments and fracture-filled diamonds, thus making them ready for prospective employers. In addition to classroom lessons, GIA facilitates hands-on learning through regular market visits – such as manufacturing facilities and retail houses – to gain an understanding of day-to-day business. Students have the unique opportunity to experience the journey of gemstones from rough to retail.

“Part of GIA’s mission has included reaching out to key centres across India with quality vocational courses that teach relevant and practical concepts in the gem and jewellery industry,” said Nirupa Bhatt, managing director of GIA India and the Middle East. “Introducing the programme in Bengaluru and now Chennai are positive steps in this direction. I thank our industry members from the Chennai for their participation in this special event, and wish the students success on their careers ahead.”

GIA’s campus in India is located on the 10th Floor, Trade Center, Bandra Kurla Complex, Bandra (East), Mumbai 400 051. The Institute conducts off-campus classes in nearly 60 cities throughout the country including Bangalore, Chennai, Cochin, Hyderabad, Madurai, Mysore, Trivandrum, Vijaywada and more. GIA conducts courses in gemmology, jewellery design and more. n

Ms. Nirupa Bhatt adressing the students, along with the dignitaries from Chennai Industry.

52

Mines to Market | March-April’ 2014

EDITORIAL DESK

WORLD DIAMOND COUNCIL MEMBERS ELECT NEW BOARD OF DIRECTORS

T

he membership of the World Diamond Council has elected a new Board of Directors, in the first such poll conducted under the organization's amended bylaws, which were approved in November 2013.

The new WDC Board comprises 20 members, equally distributed among five diamond industry sectors, and reflects the geographical diversity of the supply chain.

The names of candidates were submitted by a Nominating Committee, and the independently monitored vote was conducted by the recently re-registered membership, who according to the new bylaws are required to pay annual dues, according to a graded fee structure that takes into consideration the size and occupation of the body in question.

The newly elected WDC Board of Directors is as follows: EXTRACTION (MINING) OF DIAMONDS n Andrey Polyakov, ALROSA Group n Andrew Bone, De Beers Group n James R.W. Pounds, Dominion Diamonds Corporation n Jean-Marc Lieberherr, Rio Tinto Diamonds NV RETAIL SALE OF DIAMONDS OR DIAMOND JEWELRY n Kent Wong, Chow Tai Fook n Roberto Coin, Roberto Coin SpA n Mark Jenkins, Signet Jewelers Limited n Ronnie VanderLinden, U.S. Coalition WHOLESALE TRADING OF DIAMONDS n Stephane Fischler, Antwerp World Diamond Centre (AWDC) n Anoop Mehta, Bharat Diamond Bourse (BDB) n Shmuel Schnitzer, Israel Diamond Exchange Ltd. (IsDE) n Ernie Blom, World Federation of Diamond Bourse (WFDB) - permanent member MANUFACTURING OF DIAMONDS n Mervin Lifshitz, Botswana Diamond Manufacturers Association (BDMA) n Vipul Shah, Gem & Jewellery Export Promotion CouncilIndia (GJEPC) n Avi Paz, Israel Diamond Institute (IDI) n Elliot Tannenbaum, Leo Schachter Diamonds AT LARGE n Gaetano Cavalieri, The World Jewellery Confederation (CIBJO) - permanent member n Maxim Shkadov, International Diamond Manufacturers Assoc. (IDMA) - permanent member n Nigel Paxman, Malca-Amit Group of Companies n Edward Asscher, Royal Asscher Diamond Company Ltd. On May 12, 2014, the new WDC Board of Directors will hold its first formal meeting, during which it will elect the organization's officers. These include the WDC President, Vice President, Secretary and Treasurer. The WDC President will serve a single two-year term, following which he will be succeeded by the sitting Vice President.

Mines to Market | March-April’ 2014

Avi Paz, President of the World Diamond Council, thanked the WDC membership and congratulated the newly elected Board members, making special mention of those who would be serving as directors for the first time. He thanked all those involved in the organization of the election, as well as those who have participated in the extensive process of reforming the WDC. He also paid tribute to the outgoing board, thanking its members for their long contribution to the organization and the industry.

“I believe that we can all be proud of what has been achieved, not only this past week, but throughout the reform process. The WDC is today more representative of our industry, more transparent in its operation, and better positioned, both financially and structurally, to face the challenges of the future.

This is an important milestone for the entire diamond and jewelry sector,” Mr. Paz said.

228,000 Carat Ruby Crystal to Be Auctioned by Bonhams Bonhams will offer the largest ruby crystal ever auctioned at its Gems, Minerals, Lapidary Works of Art and Natural History sale in Los Angeles on May 20.

The crystal, in zoisite, was mined in Longido, Tanzania, and weighs 100 pounds, or 228,000 cts., and is estimated to bring between $100,000 and $150,000.

Another highlight of the auction is a 27-piece collection of rhodochrosites, also known as red gold, that is estimated to fetch between $200,000 and $250,000. The collection was mined over a period of years in the Kalahari Manganese Field in South Africa.

The auction offers fine minerals, fossils, un-mounted and rare faceted gemstones, amber, petrified wood, meteorites, gold nuggets, and rare natural pearls. Jewelry and lapidary carvings

by German masters are also on offer.

“Over the last ten years, Bonhams has established itself as market leader in selling lapidary works of art and exotic gemstone jewelry to a discerning international clientele,” said Claudia Florian, co-consulting director of Bonhams' Natural History department, in a statement.

Diamond Manufacturers Get New Sawing System Diamond jewelry manufacturers will now have a new sawing system at their disposal, thanks to some innovation on the part of diamond technology company Sarine, the firm says, according to Israelidiamond.co.il. Building on the success of 2005's Quazer and 2010's Quazer 2, the Singapore-traded Israel-based firm has released its Quazer 3, a laser sawing and shaping system for precious gems.

Among the qualities Sarine attributes to its new tool are fully automated pie cutting, for accurate advanced sawing profiles, and ultra-proficient optical control, which produces a smoother girdle surface. The machine obviates the need for a highlyskilled technician to carry out pie cutting, automating and simplifying the process. Like its predecessors, the Quazer 3 shapes rough diamonds quickly and with minimal weight loss.

The Quazer is priced for the high-end market but provides a cost-effective solution, Sarine says. n

53

Get connected with us

www.minestomarket.net

For Mor info: ‘’AMBA ASHISH’’ PUNIT SOCIETY,NAVDURGA,30,FEET ROAD SORATHIYA WADI RAJKOT-360002. M.91-9328223900,9833023900 Email:-minestomarket@gmail.com,editor@minestomarket.net Web: www.minestomarket.net