Kiran Gems Supports Humanity At Mumbai Marathon

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1 Kiran Gems Supports Humanity At Mumbai Marathon Indian diamond manufacturer Kiran Gems took part in the Mumbai Marathon as part of its corporate social responsibility (CSR) policy to support various causes like health care, general education, female education, IT education, etc. A total of 25 Kiran employees from the top echelon to the sub-managerial level participated in the run, including managing director Mavji Patel, director Dinesh Lakhani, vice president Rajesh Lakhani, and vice president Kalpesh Lakhani. Rajesh Lakhani said, This is the first time we participated in this type of event which supports noble causes as well as involves team participation. Dinesh Lakhani added, This gave us one more opportunity to stand for a cause and we are happy and proud of it. Tara Jewellers Opens First Pop-up Store In Surat Tara Jewellers launched its first stand-alone pop-up store at the VR Surat mall in Surat, the country s diamond processing hub. With a décor in shades of white and purple, the see-through glass façade showcases the different zones the browse wall, collection wall and the consultation table. These three concepts ensure that customers get closer to the jewellery pieces on display, thus providing a seamless shopping experience for the fashion conscious of Surat. Vikram Raizada, executive director and CEO retail, Tara Jewellers, said, Currently we have 40 company-managed showrooms across 32 cities in northern, central and western India. We have recently launched a few new formats and are happy to launch our first pop-up format with VR Surat. shutterstock.com Jewellers Don The Cricket Whites (From left) Yogesh Lakhani, Piyush Patel, Rajendra Jain, Pooja Salvi, Evelyn Sharma, Pooja Mishra, Petrina Dsouza, and Navin Sadarangani at the start of the Nyuzmakers cricket tournament. The sixth edition of the Nyuzmakers Cricket Challenge tournament for jewellery retailers in Mumbai took place from January 6 to 10. The underarm box-cricket tournament is an endeavour to foster a feeling of sportsmanship, honesty and fairness among members of the gem and jewellery trade. The launch event was attended by actors Evelyn Sharma and Pooja Salvi, and Swarovski Gems India managing director Rajendra Jain. At the inauguration, Evelyn Sharma said, Nyuzmakers Cricket Challenge is a fantastic initiative. It s great to see how women are being acknowledged in an event like this. A cricket challenge between top retail jewellers is a unique concept. Navin Sadarangani, proprietor of Nyuz and chief organiser of the tournament, noted, The event is not only a good way to start the New Year but also a good way for the members of the same industry to interact and compete together for honours for their store. 22 solitaire INTERNATIONAL february 2014

2 Tiffany Holiday Sales Grew 4% To $1.03 Bn New York-based upscale jeweller Tiffany & Co. said worldwide sales in the two months that ended December 31 rose 4% to $1.03 billion. On a constant-exchangerate basis that excludes the effect of translating foreigncurrency-denominated sales into US dollars, the jeweller s worldwide sales increased 8% due to growth in all regions, and comparable store sales increased 6%. Michael J. Kowalski, chairman and chief executive officer, said, Tiffany enjoyed a good holiday season with overall sales results in line with our expectation, and we were pleased to see growth across our fine and statement, engagement and fashion jewellery categories. Based on these sales results and related margins, we expect that full year earnings before certain charges will meet the most recent forecast we provided in November. Total sales in the Americas region rose 6% to $550 million. On a constant-exchange-rate basis, total sales increased 7% and comparable store sales rose 7% due to broad-based sales growth across most of the region. Sales in the Asia-Pacific region increased 5% to $196 million. However, higher sales in Greater China were offset by declines in certain other markets. Tiffany s business in Japan performed well in the holiday period. While total sales declined 12% to $135 million due to the negative translation effect from a weaker yen versus the US dollar, total sales on a constant-exchange-rate basis increased 9% and comparable store sales rose 10%. Sales in Europe rose 11% to $131 million. On a constantexchange-rate basis, total sales increased 8% and comparable store sales rose 3%, due to increased sales in the United Kingdom as well as most of continental Europe. As of December 31, 2013, Tiffany operated 286 stores, consisting of 121 in the Americas, 69 in Asia-Pacific, 54 in Japan, 37 in Europe and five in the UAE. For fiscal 2013 ending January 31, 2014, management is forecasting net earnings (before certain charges) in a range of $3.65-$3.75 per diluted share, unchanged from its previous forecast, and compared with $3.25 per diluted share in Elliott Kaufman LVMH Jewellery Head Francesco Trapani To Step Down Photo by Pascal Le Segretain/Getty Images Francesco Trapani Having successfully led the integration of Bulgari within LVMH, Francesco Trapani has decided to relinquish his operational duties as head of the watches and jewellery division from March 1, He becomes an adviser to the chairman, on matters relating to the group s jewellery operations, and remains a director on the board of LVMH. The group s jewellery maisons Bulgari, Chaumet, Fred and De Beers will now report to Toni Belloni, LVMH group managing director. LVMH chief executive Bernard Arnault commented: Over many years Francesco Trapani has progressively built Bulgari into a brand respected around the world for its refinement and appeal. Over the past three years, Francesco has successfully completed the integration of this prestigious brand within our group. I am delighted that I will continue to be able to draw on his wisdom and advice in the years ahead. Jean-Claude Biver, currently president of Hublot, will also take responsibility for the other watch brands TAG Heuer and Zenith. Arnault continued, I am also delighted that Jean-Claude Biver has agreed to lead our watchmaking activities. His experience and achievement within this sector speak for themselves, best illustrated by the remarkable success of Hublot. I am convinced that his entrepreneurial talent and creativity will add significant momentum to our other brands in the sector. 24 solitaire INTERNATIONAL february 2014

3 Arpita Patel and Jigar Patel with show stopper Himangi Singh. Sanjay Kothari being felicitated by the GJTCI. The winners take a bow. GJTCI Holds Excellence Awards In Gandhinagar The Gem and Jewellery Trade Council of India (GJTCI) held its Excellence Awards ceremony in Gandhinagar, Gujarat on January 4. Some 47 eminent personalities were recognised for yeoman services that contributed to the progress and growth of the gem and jewellery industry during the previous year. Among those present at the awards function were GJTCI president Shantibhai Patel, Ahmedabad mayor Meenakshiben Patel, former chief secretary of Gujarat P.K. Laheri, Joyalukkas Group chairman Joy Alukkas, GJEPC former chairman Sanjay Kothari, GJEPC vice chairman Pankaj Parekh, GIA India and Middle East managing director Nirupa Bhatt, Swarovski Gems India managing director Rajendra Jain and Farah Ali Khan of Farah Khan Fine Jewellery The function also witnessed choreographed fashion show sequences featuring jewellery by RBZ Jewellers, Gold House, K.K. Jewels and Hem Jadtar. The GJTCI also launched the 10th edition of its members directory during the ceremony. 26 solitaire INTERNATIONAL february 2014

4 Signet Holiday Season Same Store Sales Increase 5% Bermuda-headquartered Signet Jewelers Ltd., the largest speciality retail jeweller in the US and the UK, said Holiday Season same store sales during the eight weeks that ended December 28, 2013 grew 4.9% in the US and 5.2% in the UK. Signet s total sales of $1,276.3 million increased 7.7% compared to Same store sales increased 5% driven by balanced strength across a variety of brands and categories, it said. Consolidated e-commerce sales increased by 27.2%, comprising a 24.8% increase in the US division and a 37.5% increase in the UK division. Mike Barnes, chief executive officer, commented: We were pleased to deliver 5% same store sales for the Holiday Season and were especially encouraged by both the improvement in the UK division and the strength of our e-commerce sales across divisions. I would like to thank the US and UK teams very much for their dedication, hard work, and execution of our exciting merchandise programs during the holiday selling period. The US division s total Holiday sales of $1,072.7 million increased 7.9% versus the comparable eight weeks. US same store sales increased 4.9%. In the eight-week period, the UK division s total sales of $203.6 million increased 6.6% versus the comparable eight weeks. Same store sales in the UK were up 5.2%. The US Holiday Season was highlighted by a strong November and a strong finish to December. Overall, we expect fourth quarter same store sales to be within our guidance. However, additional discounting was necessary in a highly promotional retail environment that included challenging customer traffic trends and lower than anticipated commodity cost savings. We believe these factors will result in lower than expected gross margins and profitability versus our original expectations, Barnes added. For the fourth quarter, the company expects diluted earnings per share in the range of $2.12 to $2.16. For the full fiscal 2014, the company anticipates diluted earnings per share in the range of $4.51 to $4.55. Signet s US division operates over 1,400 stores in all 50 states primarily under the name of Kay Jewelers and Jared The Galleria Of Jewelry, while its UK division operates approximately 500 stores under the name of H.Samuel and Ernest Jones. Petra Recovers a 29.6-carat Blue Diamond Petra CEO Johan Dippenaar holding the exceptional 29.6-carat blue diamond recovered in January Independent mining group Petra Diamonds Ltd. recovered an exceptional 29.6-carat blue diamond at the Cullinan mine in South Africa. The stone is an outstanding vivid blue with extraordinary saturation, tone and clarity, and has the potential to yield a polished stone of great value and importance. Blue diamonds are among the rarest and most highly coveted of all diamonds. Cullinan is renowned as the world s most important source of blue diamonds. The mine is located at the foothills of the Magaliesberg mountain range, 37 km north-east of Pretoria in South Africa. Since Petra acquired Cullinan in 2008, it has Close-up of the 29.6-carat blue diamond. produced four blue diamonds which have sold for a total of approximately $36.64 million. These include a 39.9-carat blue diamond which sold for $8.8 million in 2008; a 26.6-carat diamond which yielded a fancy vivid blue and internally flawless 7-carat polished stone that sold for $9.49 million; a 4.8-carat diamond which sold for $1.45 million in 2012; and a 25.5-carat diamond which sold for $16.9 million in solitaire INTERNATIONAL february 2014

5 Dajikaka Gadgil, Great-grandson of P.N. Gadgil Founder, Passes Away Pune-headquartered jewellery retail chain P.N. Gadgil Jewellers announced that one of the firm s directors, Dajikaka Gadgil, passed away on January 10 after a cardiac arrest. The jewellery firm was established by Dajikaka s great-grandfather Ganesh Narayan Gadgil in Dajikaka, who was born in Sangli, Maharashtra on September 11, 1915, was known for his relentless effort and dedication towards the company s expansion. Even at age 99, he conducted inspection visits at P.N. Gadgil store branches as part of his routine. World Diamond Council Starts Implementing Reform Process The World Diamond Council (WDC) has begun the implementation of the reform of the organisation, according to the roadmap provided by its newly amended bylaws, which were approved by a vote of the full membership last November. The reforms are designed to ensure that the WDC remains reflective of the composition of the international diamond and jewellery sectors, to ensure a transparent decision-making process and to provide financial stability over the long term. The first step of the process involves the re-registration of existing WDC members and the registration of new WDC members under the new bylaws. Under the amended statutes, all members 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. Following the registration drive, which is scheduled to end in March, WDC members will elect a new board of directors. According to the bylaws, it will need to reflect the geographical diversity of the entire diamond supply chain, and always include representatives of the mining companies, diamond manufacturers and traders, diamond jewellery manufacturers and retailers, and industry service providers. The new board of directors will then elect the WDC president and vice president. The WDC president will serve a single two-year term, following which he or she will be succeeded by the sitting vice president. The new board of directors will also appoint members to the four standing committees, which include a Finance Committee, Audit Committee, Kimberley Process Task Force Committee and Technical Committee. It is today clear that the World Diamond Council s mission to defend the integrity of the diamond and the diamond and jewellery industry will remain pertinent over the long term. These reforms will enable us to maintain a robust, representative, efficient and transparent structure, which serves all members of our business community, said WDC president Avi Paz. 30 solitaire INTERNATIONAL february 2014

6 List Of Top 20 Israeli Exporters In 2013 The Diamond Authority of the Economy Ministry published its list of the top Israeli exporters in This year the list included twenty diamond companies. Like last year, the top three positions were held by diamond companies, which all registered increases in sales. Leo Schachter Diamonds takes the top spot on the list with a slight increase of 3.5% in exports to $328 million in 2013, from $317 million in MID House of Diamonds took the second spot, also increasing its sales by 3.8% from $238 million in 2012 to $247 million in In third place is A.A. Rachminov Diamonds had an impressive increase of 16.7% from $180 million in 2012 to $210 million in The firm that more than doubled its exports year over year was D.N. Diamonds 2007 Ltd. In 2012 it exported $41 million, and in 2013 it exported $94 million, an increase of 130%. Nisim Zuarets, the owner of DN Diamonds, said, This year we invested much in marketing to all of Asia, which included opening an office in Hong Kong, and we also increased our trade with European countries. We participated in more jewellery exhibitions this year and we increased the size of our pavilion at every show. We increased the variety of our merchandise and today we are known as a firm that deals with high quality merchandise, cutting and cleaning of stones from 1 to 30 carats. We try to keep our hand on the pulse of the industry and to always be attentive to our customers and suppliers. Out of the top twenty, most firms registered an increase in exports. Only four firms saw a decrease: Niru Diamonds dropped by 7%, Poligem dropped by 25%, Rachminov Diamonds dropped by 16%, and Eran Diamonds-Yehuda Sayag dropped by 11%. Shlomo Bichaci Diamonds showed no change from the 2012 figures, which stood at $40 million. Two firms that weren t on the 2012 list but did appear in 2011 have made a reappearance in Kuperman Brothers Diamonds saw an increase of 12.3% with $64 million in exports in 2013, compared to $57 million in The Segaldiam firm saw a major drop of $53.6% in exports, dropping from $69 million in 2011 to $32 million in The Diamond Authority noted that the list does not include firms that did not wish their figures to be public knowledge. Rank Company Sales 1 Leo Schachter Diamonds Ltd $328 mn 2 M.I.D. House of Diamonds Ltd $247 mn 3 A.A. Rachminov Diamonds (2000) Ltd $210 mn 4 Niro Diamonds Israel (1987) Ltd $112 mn 5 Ofer Mizrahi Diamonds Ltd $103 mn 6 Andre Messika Ltd $100 mn 7 D.N. Diamonds 2007 Ltd $94 mn 8 Yoshfe Diamonds International Ltd $91 mn 9 Rosy Blue Sales Ltd $82 mn 10 O.S.G. Polishing Ltd $77 mn 11 Royal Gem (Israel) Ltd $76 mn 12 Kuperman Brothers Diamonds Ltd $64 mn 13 Poligem Ltd $61 mn 14 Masingita Ltd $57 mn 15 Rachminov Diamonds (Israel) 1891 $53 mn 16 Eshed-Diam Ltd $46 mn 17 Eran Diamonds Yehuda Sayag $42 mn 18 Shlomo Bichaci Diamonds Ltd $40 mn 19 Yoram Dvash Diamonds Ltd $37 mn 20 Segaldiam Ltd $32 mn Kama Schachter Sports Meet Fosters Team Spirit Colin Shah (extreme left) with Kama Schachter employees at the Annual Sports Meet. Mumbai-based Kama Schachter, one of Asia s largest diamond jewellery manufacturers, exporters and retailers, recently organised its Annual Sports Meet 2014 in Mumbai. The event was part of the company s Employee Development and Internal Social Responsibility programme and was aimed at fostering team culture among the employees and reinforcing the need for constructive competitiveness. The Sports Meet brought together nearly 1,000 of Kama s employees from three different locations in Mumbai. The winners were awarded with trophies and medals. Kama Schachter managing director Colin Shah said, At Kama, we believe in working hard and having fun! The Annual Sports Meet emphasises the role of teamwork within the organisation. This year, in an effort to boost employee morale and recognise their hard work, we felicitated several best employees with the Employee of the Month accolade. 32 solitaire INTERNATIONAL february 2014

7 Kalyan Jewellers Launches 16 Service Centres In Mumbai Kalyan Jewellers has launched an initiative called My Kalyan to educate consumers and facilitate buying of gold ornaments following the overwhelming response received at its recently opened retail showroom in Mumbai. The company has launched 16 My Kalyan jewellery service centres in Mumbai, and has more than 550 My Kalyan outlets across India. They provide exclusive services to its customers, including advance booking for wedding purchases, the Kalyan gold purchase advance scheme, gold insurance, gift vouchers for gold ornaments, Kalyan gold card loyalty programme, etc. The My Kalyan stores are located in Mulund, Bhandup, Chembur, Andheri, Kalyan, Bhayender, Bhiwandi, Kandivali, Airoli, Kalwa, Belapur, Nerul and Koperkhairne among others. Kalyan Jewellers managing director T.S. Kalyanaraman said, Buying jewellery is an emotional decision. However, with the spiralling cost of gold, it is also a huge investment. Thus we felt the need to educate our clientele on gold and the available options to help them make an informed purchase decision. My Kalyan also helps customers plan their jewellery purchases for special occasions. Bollywood star Aishwarya Rai is Kalyan Jewellers brand ambassador. Alrosa To Produce 36 Mn Ct In 2014 Russian diamond miner Alrosa s Supervisory Board reported plans to preserve its 2014 diamond production at the 2013 level of 36 million carats. This marks a 5% growth over 34.4 million carats produced by Alrosa in The major growth drivers include the purchase of OJSC Nizhne-Lenskoe, the increased diamond grade in the Yubileynaya pipe, and increased diamond mining in the Mir underground mine. The company s forecast is a stable balance between demand and supply on the rough diamond market with a potential gradual growth in rough diamond prices by 2-3% throughout 2014, Alrosa said. Alrosa noted that it intends to maintain its world-leading position in rough diamond mining through the development of its production facilities and mineral resource base. These include completion of the open-pit mine on Botuobinskaya pipe, where diamond mining is to start in The firm aims to put into operation the first start-up complex of the Udachny underground mine and the Ebelyakh and Ruchey Gusiny placers. It also aims to launch the second module of the processing plant of Lomonosovsky Mining and Processing Division at the full capacity of 3 million tons of ore per year. Alrosa s capital investment this year will remain at the 2013 level of RUB 39 billion, while its RUB14 billion investment in underground mines is 30% greater than last year. The bulk of the investment will go into the construction of the Udachny underground mine, where the most extensive works are planned in 2014 before putting it into operation. In 2014, Alrosa will start preparing for the new contract period Long-term agreements with major manufacturers of polished diamonds and jewellery remain Alrosa s key priority, and the company expects this number to grow in the new contract period. Making up the customer list, Alrosa will take into account its experience of cooperation and amount of previous work with the customers under long-term agreements and spot transactions. The company s priorities for 2014 include focusing on the core diamond business and exiting noncore assets, increasing operating efficiency, optimising corporate management, as well as increasing the number of independent directors on the Supervisory Board. 34 solitaire INTERNATIONAL february 2014

8 Nawab Muzaffar Khan of Palanpur bestowing upon Mistry a plaque celebrating his achievements. Palanpur s Vidyamandir Trust Felicitates Alumnus Pranav Mistry The audience listens with rapt attention. Vidyamandir Trust, an educational body set up by Mumbai-based Jain diamond traders in 1951 to boost primary education in their home town Palanpur, felicitated alumnus Pranav Mistry, head of the Think Tank Team and director of research of Samsung Research America for his achievements in the field of digital technology on January 7 in Mumbai. Celebrated inventor and innovator, Mistry is best known for Sixth Sense, a revolutionary wearable gestural interface shaping NextGen smartphones and handheld devices. He has received a number of global awards with one of the most recent being Young Global Leader 2013 by the World Economic Forum. Mistry gave a speech under the The Inspiration Series: Connect. Ideate. Grow programme devised by the Palanpur Samaj Kendra and Palanpur Online to inform young members of the community involved in the diamond industry about new opportunities in the business. In a vibrant and exciting presentation, Mistry outlined his many inventions of the past and also provided a peek into the shape of things to come. Technology often seems like magic. It constantly evolves to make the impossible possible, he said. Sixth Sense technology helps the visually impaired to communicate by translating sign language into words. An inbuilt computer then lends voice to the words. Mistry has also invented Mouseless an invisible computer mouse; Blinkbot, a gazeand blink-controlled robot; and a pen that can draw in 3D. Researchers and inventors across the world are already experimenting with the new technologies of tomorrow, said Mistry expounding on the possibilities of the future. We could have a humancomputer interface directly from the brain to the machine; we may see levitation of physical objects using ultrasound waves; we may have humans interacting with distant 3D objects through the virtual world. Pranav hails from Palanpur and did his entire schooling at Vidyamandir. Today, he attributes the school as being one of the most significant influences in his life. My school and my teachers gave me a strong knowledge base and laid the foundation for my constant scientific inquiry. But more than that, it instilled in me the urge to constantly improve and be Better Every day, he added, the latter referring to the school motto. 36 solitaire INTERNATIONAL february 2014

9 Russian Economy Growing But Further Reforms Needed: OECD SPECTRUM The economy of Russia, the world s biggest diamond producer, is growing, but further reforms are needed to bolster future growth, improve the business climate and strengthen innovation, according to the OECD. The OECD Economic Survey of Russia, presented by OECD secretary-general Angel Gurría to first deputy prime minister Igor Shuvalov in Moscow, underscores the importance of making the economy less dependent on fluctuations of world market prices for natural resources, increasing productivity, and better matching skills to jobs. The Russian economy is at a crossroads, said Gurría. It has tremendous potential but is still heavily reliant on volatile revenues from natural resources. It would do well to invest more in infrastructure, human capital and innovation, so that larger segments of society can partake in Russia s transformation. The survey indicates that Russia is doing well on a number of fronts but that future growth is being held back by poor governance and rule of law issues. Productivity and living standards are also still well below those of the most advanced market-oriented countries, and the speed of convergence since the crisis, has stalled. Establishing a transparent, coherent and predictable business climate would help chart a path for stronger growth. The survey urges sustained and effective anticorruption measures, greater judicial independence, and a reduction in barriers to market entry and competition. Accelerating privatisation that is well-managed should go hand in hand with fostering a level playing field between public and private companies, the OECD said. solitaire INTERNATIONAL february

10 China-based Yinren Group Acquires Antwerp Diamond Bank Brussels-based bank insurer KBC Group announced that its subsidiary Antwerp Diamond Bank (ADB), a leading market player in providing finance to the diamond trade and industry, has been sold to the Shanghai-based Yinren Group. Financial details of the deal, which are still subject to regulatory approval, have not being disclosed. Under the agreement and pending regulatory approval and final closure of the deal the Yinren Group will acquire 100% of KBC s participation in ADB, which represents 99.9% of ADB s shares. The sale of ADB will have only a negligible upfront impact on the KBC Group s earnings. The deal will free up around 0.1 billion of capital for KBC, primarily by reducing riskweighted assets, which will ultimately improve KBC s tier-1 ratio (Basel II) by almost 0.2%. Before the deal is closed, part of ADB s loan portfolio primarily the higher risk and non-performing loans with a net book value of 0.4 billion (out of a loan portfolio of 1.2 billion in total) will be transferred to KBC Bank NV and put in ordinary run-down. After closure of the deal, KBC will also provide funding to ADB totalling 0.2 billion for a maximum period of two years on a secured basis. The Yinren Group is a diversified group with activities in real estate, international trade and the diamond industry. The group has operations in mainland China, Hong Kong and Brazil. The acquisition of ADB will allow Yinren to leverage upon ADB s know-how, network and brand reputation in view of the further development of the Chinese market, and to play a role in the interaction between the world s main diamond centres including Antwerp, Mumbai, Dubai and Hong Kong and the upcoming centres of the Far and Middle East. The Yinren Group is now able to add financing of the diamond sector to its scope of activities. Yinren will provide ADB access to the entire diamond value chain in Asia and Greater China, in particular, a statement read. Johan Thijs, CEO of KBC Group NV commented as follows: Because of Antwerp Diamond Bank s very specific business activity in a niche market, this divestment turned out to be a challenging project, though one which we have managed to conclude successfully. ADB is a strong brand and a leading player in the diamond banking industry, with a long and rich history, and committed staff. We are convinced that the Yinren Group will develop ADB s business going forward, securing the future of its staff and ensuring that quality service will continue to be provided to its customers. Pierre De Bosscher, CEO of ADB, concluded: The Yinren Group fully supports our customer-oriented model and strategy and has a valuable long-term strategic outlook. We look forward to working closely with our new shareholders in further developing the bank s global capabilities and business plan. We are convinced that our customers and staff will benefit from the commitment and support the Yinren Group has shown during the acquisition phase. Tanzanite Miner Richland Raises 2.76 Mn Chopard British gemstone mining firm Richland Resources Ltd. has raised approximately 2.76 million ($4.5 million) via the issue of, in aggregate, 81,060,944 new common shares on the London Stock Exchange. The company, which has been battling illegal incursions into its licence areas, intends to use the funds to restart activities at two recently recovered mine shafts, fund expansion of operations, and settle royalty claims and provide additional working capital. The group s current operations and financial results during 2012 and for the six months ended June 30, 2013 have been severely affected by the impact of illegal underground mining into TanzaniteOne s operations from neighbouring blocks. The company has suffered significant impairment to its mining infrastructure as well as resulting in net losses after tax in the financial year 2012 and in the six months to June 30, 2013 of $13.6 million and $0.56 million respectively. Bernard Olivier, chief executive officer, said, Our intention is to rapidly establish new production and return to profitability, a situation fully supported by our licence partners, STAMICO. 38 solitaire INTERNATIONAL february 2014

11 GIA To Develop World-class Pearl Testing Facility In Bahrain The Bahrain ministry of industry and commerce, the Bahrain Economic Development Board (EDB) and the Gemological Institute of America (GIA) have signed a memorandum of understanding to help develop Bahrain s Gemstone and Pearl Testing Laboratory (GPTLB) into a world-class research centre for natural pearls. We re pleased to contribute GIA s expertise and research to build on Bahrain s history and reputation as a leading centre for natural pearl research and production, said Tom Moses, GIA s executive vice president and chief laboratory and research officer. The initiative, which was agreed on in November 2013, is to protect and enrich Bahrain s pearling industry by increasing capacity, research, expertise and technology at the GPTLB, and by identifying further opportunities for growth. The memorandum builds on Bahrain s history as a world pearling centre, an industry once considered the backbone of the Kingdom s economy. This is an exciting development for Bahrain s pearling industry. By working in partnership with GIA, the GPTLB will be provided with the facilities and expertise required to capitalise on regional and international trade and investment opportunities in this fast growing sector, said Dr. Hassan Abdullah Fakhro, the minister of industry and commerce. H.E. Kamal bin Ahmed, minister of transportation and acting chief executive of the Bahrain EDB, added, Historically, pearling was the backbone of our economy, and we want to capitalise on our heritage, combined with world-class techniques and processes, to create a centre of excellence for the industry here in Bahrain. GIA has an established presence in the Middle East, conducting education programmes and courses in major trade centres including Bahrain, Dubai, Kuwait, Lebanon, Qatar, Saudi Arabia and Turkey. solitaire INTERNATIONAL february

12 Rio Tinto s Diamond Output Surges 22% In 2013 Mining major Rio Tinto reported a 22% jump in diamond output for the full year 2013 to million carats, compared with million carats in In the final quarter of last year, the company registered a 38% increase to million carats owing to a strong performance at its flagship mine Argyle in Australia and at Diavik in Canada. The fourth-quarter output was 8% higher than the preceding quarter. Argyle s production of million carats in the fourth quarter and million carats during the entire year grew by 57% and 34% respectively on a year-on-year basis. At Argyle, carats recovered were 57% higher than the fourth quarter of 2012 reflecting increased tonnes processed in the period and higher grades following commissioning of the underground operation earlier in the year, the company said. At Diavik, fourthquarter output grew 9% to 1.24 million carats, but remained flat for the full year 2013 at million carats. Carats recovered at Diavik were 9% higher than the fourth quarter of 2012 as a result of an increase in tonnes processed as the underground mine ramped up to full production, which was partially offset by lower grades, the miner reported. At Rio s Murowa mine in Zimbabwe, rough output increased 7% to 105,000 carats in the final threemonth period and rose 3% to 322,000 carats in the year. Rio Tinto said the Diamonds and Minerals division accounted for 13% of the $948 million pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in At the Suriapet diamond project in India, gravel sampling continued, but was hampered by monsoon rains, it noted. Meanwhile, the Bunder diamond project, which is estimated to produce 3 million carats a year, is still at the evaluation stage. intricate cutwork solitaire INTERNATIONAL february

13 Kagem Emerald Mine Pays First Dividend Of $8 Mn Gemstone producer Gemfields plc said that Kagem Mining Ltd., Zambia s largest emerald producer, and in which Gemfields has a 75% interest, has declared and paid a dividend of $8 million. The government of Zambia, a 25% shareholder in Kagem, has received its $2 million share of the dividend, and Gemfields has received its $6 million share. The cash pay-out arises from distributable net profits generated by Kagem during recent years. It is believed to be both the first ever dividend paid by Kagem in its 29-year history and the first such payment to the Zambian government from any gemstone operation in Zambia. Ian Harebottle, CEO of Gemfields plc and Kagem, said: This dividend a truly remarkable milestone is the culmination of more than five years of very hard work. First, we invested heavily in the restructuring, redevelopment and expansion of Kagem. Second, we ve implemented, on a scale never before seen in the Zambian gemstone sector, an innovative and sustained international marketing campaign for Zambian emeralds, promoting them as a reliable, secure and ethical source of supply. The dividend has been facilitated by the turnaround strategy initiated at Kagem in conjunction with the Zambian government a little more than five years ago, when Gemfields acquired a 75% beneficial interest in the company. At that time, Kagem was loss-making and its total annual sales (approximately $8.9 million) were broadly the same as the dividend now being paid. In the year ending June 30, 2012, Kagem s revenues had grown to approximately $78 million. At a media briefing in Lusaka, the Zambian minister of finance, Alexander Chikwanda, said: Although this is the first time that a dividend is being received from a gemstone mine, I am confident that this is just the beginning of the good things to come from gemstone mining in Zambia. Harebottle added, Kagem is the flagbearer of the Zambian gemstone sector, and one of the finest examples of what can be achieved in partnerships between government and foreign investors in the mining sphere. We would like to thank and congratulate our partners in the Zambian government for their role and support in reaching this excellent result. Forevermark Hosts Indian Jewellers On Europe Junket Forevermark celebrated its third year in India by hosting a few of its 120 authorised jewellers on a five-day visit to the two European cities of Antwerp and Milan last December. Following the 2013 visit to London and Scotland and to South Africa the year before, the visit this time allowed jewellers to witness the stringent processes involved in inscribing and grading a Forevermark diamond. Forevermark India president Sachin Jain said, As we embark on a new year, we thought this would be a great time to celebrate our accomplishment together with our honoured partners in India, the Forevermark jewellers. To commemorate this success, Forevermark organised a trip to Europe to further strengthen the partnership between the brand and the jewellers. The participating retailers included Anmol Jewellers, C. Krishniah Chetty & Sons, A.S. Motiwala, Chintamanis, Gujranwala Jewellers, Hazoorilal, Mahesh Notandas, Mehta Emporium, Navratna Jewellers, Neelkanth, Notandas & Sons, Khurana Jewellery House, and Vummidi Bangaru Jewellers. 42 solitaire INTERNATIONAL february 2014

14 Dubai Shopping Festival Offers Prizes Worth K1 Crore The 19th edition of the Dubai Shopping Festival (DSF), which is being held from January 2 to February 2 under the theme Shop at Your Best, is offering residents and visitors the opportunity to win prizes worth AED6 million (I1 crore). Shoppers are presented with the chance to win a kilo of gold and a diamond solitaire ring every day across the 32 days of the festival by the Dubai Gold and Jewellery Group (DGJG). Shoppers purchasing gold jewellery worth AED500 at any participating outlet in the city will be entitled to one raffle coupon that will be entered into the daily draws. Further, shoppers who purchase diamond jewellery, pearls or watches worth AED500 can increase their chances of winning the daily prizes, as they will get two raffle coupons. Over 300 jewellery retail outlets across Dubai are participating in the campaign. During the past 18 years of the DSF, the DGJG has given away over 700 kg of gold in prizes. shutterstock.com Verichannel Brings Bitcoin To Jewellery Industry Verichannel, LLC announced it had entered into an agreement with Coinapult, one of the leaders in Bitcoin payment processing, to bring a broad range of Bitcoin services to retail jewellers. Under the terms of the relationship, Verichannel is able to offer retail stores and e-tailers the ability to accept Bitcoin as they would Visa or PayPal, and receive US dollars directly into their bank accounts, without having to touch the Bitcoins themselves. Unlike credit cards or PayPal, Bitcoin transactions are not reversible. And through its partnering relationship with Coinapult, Verichannel is able to offer retail jewellers in the US a negotiated total fixed-fee of $3.00 per transaction. The fee is slightly higher outside the US. One of the biggest problems facing retail stores is the risk of credit card reversals, explained Verichannel CEO Jacques Voorhees. The bias of the card processors in favour of the consumer, while understandable, also enables too much fraud. Vendors are at risk on almost every transaction. Furthermore, with today s ultra-thin margins, the percentage-based credit card processing fee doesn t help. Bitcoin technology has received considerable publicity over the last 12 months, and was featured on the cover of Time Magazine last December. Overstock.com began accepting Bitcoin in January and processed 800 orders totalling $126,000 on their first day. Jeweller Tivol in Kansas City also recently completed a Bitcoin transaction and now accepts the digital currency. We have been extremely impressed with the possibilities that Bitcoin brings to our industry, and are excited to provide this convenient currency option to our customers. We believe Bitcoin s popularity will only increase with time, said Cathy Tivol, the CEO of Tivol. Competitive forces unleashed by technology have battered retail jewellers, continued Voorhees. This is an area where retailers can use technology to their advantage, to cut costs and reduce risk. They can be ahead of the game on this one. Under the Verichannel- Coinapult service, a retailer who accepts Bitcoin has the digital currency converted into dollars automatically and deposited into the merchant s account. If you sell a ring for $2,000, explained Voorhees, you will receive exactly $2,000 in your bank account, minus the $3.00 fee. In this way the merchant is shielded from exchange rate volatility and never actually owns the bitcoins. 44 solitaire INTERNATIONAL february 2014

15 Hari Krishna Female Employees Set Polishing Record Surat-based diamond manufacturing firm Hari Krishna Exports Pvt. Ltd. reported that two of its female employees had polished two triple-excellent cut diamonds in a record eight days. Both women had pursued training in diamond cutting and polishing at the company. Kajal Sorathia (left), who is differently abled, and Jalpa Narola (right), who worked as a telephone operator until a few years ago, have become the first women diamond artisans to polish triple-excellent cut diamonds weighing 1.06 carats and 1.02 carats respectively, in record time. Ghanshyam Dholakia, managing director, Hari Krishna Exports Pvt. Ltd., said, We have taken up a mission of training women in the art of cutting and polishing diamonds. With years of experience and knowledge, an expert artisan would take five days to precisely cut and polish a triple-excellent cut diamond. Both Kajal and Jalpa have become the first female diamond artisans in the world to have achieved this feat in just eight working days with a training period of eight months behind them. This only proves the point that if you are determined and work positively towards your target, you will certainly achieve it. If the symmetry of all the 57 facets of a diamond is perfect, and cut and polish are excellent, then the diamond is said to be a tripleexcellent cut diamond. Manohar Lal Jewellers Launches New Branch in Delhi New Delhi-based jewellery retailer Manohar Lal Jewellers Pvt. Ltd. recently opened a new store at a sprawling location at Pitam Pura in the capital. The launch event was presided over by religious guru, Shri Swami Vivekananda Saraswati, and was attended by Delhi s upper crust. The company s directors Sudhir Singhal, Himanshu Shekhar and Prabhat Shekhar were also in attendance. The showroom s complete stock of gold jewellery is hallmarked, and its solitaires and diamond jewellery are certified by the Gemological Institute of America (GIA) and the International Gemological Institute (IGI) respectively. 46 solitaire INTERNATIONAL february 2014

16 GJEPC To Host Trends Jewellery Forecasting Seminar The Gem and Jewellery Export Promotion Council (GJEPC) will organise a seminar on trend jewellery forecasting on February 25-26, 2014 in Mumbai. The two-day seminarcum-workshop aims at educating members and students of the gem and jewellery industry on the latest jewellery trends of specific markets such as Europe and the USA. The seminar will be conducted by Paola de Luca, creative director and forecaster, Trendvision Jewellery + Forecasting, and her colleague Noki Tran. Trendvision Jewellery + Forecasting, is an internationally renowned consulting firm based in Italy, and an independent trend forecasting observatory of Vicenza Fair. Speaking about the initiative, GJEPC chairman Vipul Shah, noted, Indian jewellery has, without a doubt, created a niche for itself as it combines contemporary sensibilities with traditional aesthetics. America and Europe remain one of the major markets for Indian exports and thus, understanding the trends prevalent in these countries becomes imperative. Extensive knowledge of the market and high sensitivity towards consumer interest is essential in our trade. Therefore, through this seminar, the Council hopes to achieve design sensibilities and strategic awareness to further penetrate into these key markets. Paola de Luca commented, I would like to thank Paola de Luca will hold a two-day seminar on jewellery trends in Mumbai. the Council for giving us the opportunity to share our knowledge and research in India. At Trendvision, we believe that education is important for the development of any industry. Therefore, through this seminar we hope to provide the Indian gem and jewellery industry the strategic direction that is required at this point in time to compete at the global level. According to latest export figures, the Indian gem and jewellery exports from Jan-Dec 2013 to US stood at $4, million and to Europe at $3, million. In order to tap a huge business opportunity it is imperative to constantly enhance and upgrade India s jewellery design prowess. This initiative is a part of the GJEPC s continuous efforts to train and equip Indian manufacturers with the latest in global trends and consumer preferences. For registrations, please contact: Poonam Ghare, GJEPC, , poonam@gjepcindia.com Rio Tinto Spearheads Environmental Initiatives In MP Rio Tinto announced a new partnership aimed at protecting India s critically endangered vulture species and maintaining the biodiversity of the Madhya Pradesh region of India. In the first ever partnership of its kind in the mining industry in India, Rio Tinto has signed a memorandum of agreement with the Bombay Natural History Society to support a number of wildlife management initiatives over a five-year period. Dr Nik Senapati, managing director of Rio Tinto India, said, The negative effect of the declining vulture population on the economy, public health and culture in India cannot be underestimated. Rio Tinto is delighted to partner with the esteemed Bombay Natural History Society and we look forward to a long and fruitful collaboration. Vultures are a critical part of the food chain. By removing rotten meat and bones they maintain a balanced ecosystem and prevent the unnecessary spread of disease. The dramatic decline in the Indian vulture population is directly linked to animal husbandry practices, namely the use of the painkiller, Diclofenac, to treat cattle. This painkiller poisons the vultures when they eat the carcasses of cattle. In under a decade vulture numbers in India have decreased by up to 99%, the fastest decline of any bird ever reported. The central Indian state of Madhya Pradesh, home to Rio Tinto s developing Bunder diamond project, has a thriving population of birdlife and is a natural habitat for vultures. Together with Birdlife International and the Bombay Natural History Society, a 100 km vulture safety zone will be established in Madhya Pradesh. The expectation is that this will protect wild vultures and in the future, vultures from captive breeding centres in India could be reintroduced into the wild. Over time, this would revert back to being a self-supporting population. Tarun Malkani, chief operating officer of Rio Tinto Diamonds in India, said, Rio Tinto is playing a leading role in helping determine how wildlife must be protected. This partnership is a reflection of our long-term commitment to Madhya Pradesh and the way we work with the government, local partners and industry experts. The Bunder diamond project is expected to place Madhya Pradesh in the top ten diamond producing regions of the world. Mine plan approval was obtained in July 2013 and Rio Tinto is now working on the environmental and forestry approvals required to execute a mining lease. 48 solitaire INTERNATIONAL february 2014

17 Dual Venues For Hong Kong Show March Following years of success and the ever-increasing demand for exhibition space, the Hong Kong International Jewellery Show 2014 will transform into two shows at two venues, the Hong Kong Trade Development Council (HKTDC), the organiser, recently announced at a press conference in Mumbai. The Jewellery Show will feature finished jewellery products at the Hong Kong Convention and Exhibition Centre from March 5-9, while the Diamond, Gem & Pearl Show will showcase loose gemstones and raw materials at the AsiaWorld-Expo from March 3-7. The new arrangement will ensure sufficient space for new exhibitors and future development. A record of more than 3,700 exhibitors from 50 countries and regions are expected in 2014 to showcase a variety of finished jewellery, diamonds, precious gemstones and pearls under the two specialised platforms. The new format aims to maximise the exhibitors exposure and buyers sourcing opportunities. The HKTDC has also organised buying missions from Australia, India, Japan, Russia, Saudi Arabia, and the United States. The AsiaWorld-Expo show will be divided into numerous zones based on product categories, such as the Hall of Fine Diamond for loose diamonds and Treasures of Nature that will display rare precious stones, South Sea pearls, and Tahiti pearls. The Diamond, Gem & Pearl Show will include country pavilions from Brazil, China, Colombia, Germany, India, Italy, Japan, Sri Lanka, Taiwan, Thailand and the US. The show will also host Indonesia, Madagascar, and South Africa group pavilions for the first time. Going into its 31st edition, the Jewellery Show will extend its Hall of Extraordinary to accommodate 130 exhibitors, including Oriental Gemco Pvt. Ltd. from India, Lili Jewelry Ltd. and Fook Wing Tong Jade & Treasure Ltd. The Hall of Fame, designed to showcase high quality international jewellery brands, will include Lao Feng Xiang from China, Geogiile Viscont from Italy, Waskoll and Cerruti from France, as well as Elle from Hong Kong this year. The show will also feature the Small- Order Zone for buyers looking to place a minimum order quantity of 5-1,000. Overall, over 130 Indian exhibitors will be participating in the trade show. Five new pavilions Indonesia, Norway, Peru, South Africa, and the UK will be added to the list of country pavilions this year. In addition, Fiera di Vicenza from Italy will organise the first T-Gold International Pavilion to present Italy s latest innovative technology for jewellery production at the show. A number of workshops and seminars will be held throughout the show, one of which will be hosted by the president and general manager of Blue Nile Inc., Vijay Talwar, who will share his experience on global e-commerce success in the jewellery industry. To understand consumer behaviours, Paola de Luca, creative director and forecaster of Trendvision Jewellery + Forecasting, will be hosting a seminar on exploring 2015 s trend forecast focused on jewellery and diamond products. 50 solitaire INTERNATIONAL february 2014