We can only write about our own experiences, it would not be faire to repeat stories on he says she says principles. So in this article, we will relate our experience with Pacific Freight Company Limited SL in Freetown, which committed to first deliver a 300CT parcel for us, than the shipment was stopped, than diverted to Guinea without our permission or consent.
In order to make up for this debacle, Mr Malik its Director agreed to ship a smaller parcel at no extra cost of course, since he never delivered on the service he was paid for. Than 2 weeks later came back on his word once again, and started making stories up. Deadline was given to Pacific Freight Company Limited SL to reimburse the funds in full and the company failed to do so for over 3 months!
We highly recommend that you stay away from this alleged “Shipping Company” and Mr Haruna Malik its Director. They have brought us nothing but headaches, have no business ethics what so ever, and quite frankly, are a complete embarrassment to the Sierra Leone Diamond Industry.
Feel free to call us at +1-305-600-1814 for more details.
The Antwerp World Diamond Centre (AWDC) released their latest sales figures, which showed that Antwerp’s diamond industry, specially rough diamond sales are on the upswing.
During the month of February, Antwerp’s exports and imports totaled around $5.1 billion, a total of 25 million carats of rough and polished diamonds were traded during that month. Which represents a 38-percent increase by volume and a 4.5-percent increase by value over last year’s figures.
However, Antwerp’s polished diamond figures for the month of February showed a decline on a year-over-year. Polished diamond exports fell to about 9.64 percent to $1.596 billion in comparison with $1.766 billion in February 2015 by value. This volume decline of rough diamond exports fell to 15.77 percent to 616,000 carats compared to to the same period last year of 731,000 carats.
There was a drastic improvement in Rough diamond exports on a year to year basis. In value, rough diamond exports increased to 21 percent or $1.277 billion in comparison with $1.057 billion in sales for February 2015. Rough diamond exports in volume jumped 30 percent to 12.3 million cts compared to 9.5 million a year ago.
Cut & Polished diamond imports decreased for February by 11.94 percent in value and 16.64 percent in quantity. But rough diamond imports ae on the up and up. In value the increase was 27.79 percent or $1.329 billion in comparison with $1.039 billion for February 2015. By volume, rough diamond imports increased about 58 percent, jumping to 11.7 million carats compared to 7.4 million carats over last year.
The PDP (People’s Democratic Party) of Zimbabwe declares the Zimbabwe Government seizure of Diamond Mines to be illegal. The Government decision to shut down 8 diamond Companies in Marange, describing the move as “illegal and immoral” in the meanwhile the firms have vowed to sue the State.
The Mines minister, Walter Chidhakwa, has ordered the companies to stop their operations and gave them 90 days to withdraw all their equipment, stating that they had resisted government plans to consolidate operations into one state-dominated mining company.
And as the companies started winding down their operations following the order, penners reportedly massed into the area, Ordered the companies to shut looting equipment and household goods.
PDP, led by former finance minister Tendai Biti, conceded that the companies had not brought any meaningful benefits to the country.
“It is common cause that the companies operating in Marange have been responsible for large scale looting of our national resources and thus depriving Zimbabweans of the much needed resources for development, they did so with the express blessing of the same government which today is crying foul,” the party stated in a statement.
“Since 2009, the nine companies operating in the Marange diamond fields have been exporting diamonds collectively worth US$2 billion annually but the government which had 50% stake in these firms ironically received less than US$300 million in revenue. This is criminal and unacceptable.
“As PDP we are further aware that the companies also committed shocking human rights atrocities on the poor people of Marange, murdering them in cold blood, razing down their houses and damaging their environment without compensation.”
The party however said the forced closure was illegal.
“As the PDP, we also believe in the rule of law which demands that there be fairness and just administrative conduct in respect of the principal of the right to be heard,” the party stated.
First off, you must understand that diamond sales and sales process greatly varies from one Country to another. In some Countries, sales are entirely controlled by the Government, in others, not so much.
So what is so different about Botswana Diamonds? We have people contacting our Trade Desk offering rough diamond parcels from Botswana…really? Are these offer genuine? This answer is no, such offers do not exit, period!
What do you mean? Well, it is actually very simple, the Botswana Government has made a Join Venture with DeBeers in 1969 creating Debswana Diamond Company Ltd. which controls the market.
In order to jumpstart the economy of the Country, a Botswana law was enacted in order to mandate that all diamonds exported out of Botswana be cut and polished, in order to create employment, so no rough diamonds can exit the Country legally.
Given, some people are illegally smuggling stones out of every diamond producing Countries, however, all these ridiculous rough offers claiming to have Botswana origin are fake!
DeBeers even moved their head office from London to Gaborone a few years ago, and Gaborone now has one of the most extraordinary diamond facilities in the world.
In the Diamond Business, scammers are everywhere, from fake African Sellers to Western Brokers acting as hot shot Diamond Buyers all over the internet, fake rough diamond manifests are flying all over the internet like an Airbus 380 goes around the world, and than are being sanitized by brokers afraid to be circumvented on their commissions, which is even funnier.
These low life will act and pretend to be someone they aren’t, fake seller’s (mostly in Africa) will send you fake export licenses, manifests for astronomical amounts of diamonds, ranging from 10,000 CTS to 500,000 CTS, claiming to be able to supply such quantities monthly (LOL). 99% of these are fake, in order to be able to supply such quantities, you have to be a company like Alrosa or De Beers, and believe me when I tell you that these large mining companies do not send out such manifests through brokers on the internet.
Here are some examples of fake licenses from Sesay Moses of Global Mining Company S/L Limited, John E. Cole (CEO of Fashion Mining and Company SL Limited), these scammers and crooks can be very creative, will promise you the world and the story will change as they go on.
Scams can go from a request for Buyers to issue an SBLC, seller would provide a fake POP, once the Letter of Credit is open (few banks these days would still let you fall for these scams by the way), they would “take you hostage for ransom” and request a lump sum in order for their bank to release the instrument.
Others will simply set you up with corrupted local cops, get your parcel confiscated and get a cut back from the bribe. There are a million ways for these crooks to scam you over the internet, or on the ground.
The most important thing is never to pay anything up front, never to open any kind of instruments, and always transact at the government offices where the stones will be evaluated by a professional gemologist before paying any money.
The GGDO, The Government Gold and Diamond Office in Freetown Sierra Leone is the government agency in charge of issuing all export licenses for Gold and Diamonds if you want to export these commodities out of the country.
Such licenses can cost up to $45,000 per year, and without purchasing a license, or being able to use someone else’s, you will not be able to get your Kimberley Process Certificate to take the diamonds out of the country.
As of today, there are only 21 Companies with current Diamond Exporter’s Licenses, 40 with Diamond Exporter’s Agent Licenses, and 47 with Diamond Exporter’s Agent Certificate.
Most people will show you a fake license, and purchasing from these scammers can land you straight to prison, not to mention the fact that you will most likely lose your money. You will also need a Diamond Dealer’s License if you decide to purchase rough diamonds on your own.
If you decide to purchase rough diamonds in Sierra Leone, Madnox can save you lots of time, money and headaches with our operations on the ground in Freetown. Feel free to contact us at TradeDesk@Madnox.com or call us for consulting services at +1-305-600-1814
Rough Rapport index has been falling since mid 2014. Many of the large diamond players such as Debeers and Petra had to lower their prices by 10%, Alrosa, the largest diamonds producer in the world lowered their prices by 16% in September.
This fall in prices comes primarily from a slowing Asian market, pressure from Indian buyers, and first and foremost from over production from mine to market by these large mining companies.
Regardless of the falling market, we anticipate prices to stabilize within the next 2 quarters, ultimately, the rough diamonds market will recover, and investments in rough diamonds or any precious commodities are still much safer than stocks, which are only backed up by useless paper.
Gold has been picking up steam recently, due to the volatile stock markets in Asia, and will most certainly keep climbing as the Chinese real estate markets slowly implodes in the near future.
An extremely rare 12 carat, flawless blue diamond, named the Blue Moon, will be sold at a Sotheby’s auction on November 11th in Geneva, and is expected to become the world’s most expensive diamond ever sold. Sotheby’s expects the Blue Moon to fetch up to $55 Million.
The Cullinan Mine has produced some of the world’s largest diamonds in the past and is one of Petra’s largest pit mines. Petra Diamonds is the largest rough diamonds producer is South Africa. Petra has seen a 33% drop in sales from the same period last year.
The Blue Moon’s original size was 29.62 CTS and was purchased, cut and polished by Cora International, a New York Cutting House, who took 6 months to polished the stones, and will be selling it in Geneva. Current world record is being held by The Graff Pink which went for $46.2 million in 2010.
Manicaland Province Marange Fields have been known to be some of the largest source of diamonds in the world in the past few years. In 2015, Zimbabwe’s diamond production is expected to drop from 5.9 Million CTS to 3.5 Million.
Three new mines started operations last year in the Marange Fields, however, the increase in supply has not been steady, as these mining operations are expected to have a lesser impact, due to the fact that these are not alluvial mines.
Zimbabwe had a tremendous supply of alluvial diamonds, however, these alluvial diamonds have been mined extensively, and alluvial supply is running short. Therefore minors now have to dig for rough stones underground instead, making it more difficult and more expensive to mine for rough diamonds.
This is the number one reason for the decrease in production in the Marange Fields. In order to optimize the management and production of these mines, the Government is in the process of merging five mining companies into one large corporation.