De Beers invests $5 million to expand India’s diamond grading unit

Employees of diamond mining company De Beers are set to go on strike on Friday after wage talks broke down on Wednesday. The workers follow tens of thousands of others in South Africa's coal, metals and petroleum industries who have been on strike for weeks. The strikes come at a time when the country's mining output is slowing and new investment in the industry is drying up amid uncertainty about state ownership, taxation, an ever-changing regulatory environment and corruption. A recent ranking of top global mining investment destinations that puts Alberta at the top relegates South Africa to number 63 alongside Zimbabwe, Guatamala and Venezuela.

Rising appetite for Gold jewelry among households and investors in China and India is driving the global demand for the yellow metal, says a study conducted by the Dubai Multi-Commodities Centre (DMCC). China and India—two largest gold consuming nations in the world—have been driving gold demand in the world in the last few years.

Diamond producer Petra Diamonds on Tuesday reported a 24% increase in gross mine revenue to US$220.6 million for the year ended June 2011, mainly due to the steady increase in rough diamond prices from October 2010. Revenue of US$90.0 million in the

"As the fifth-biggest consumer of diamonds, a stake in a diamond mine would be interesting," the CEO of Swatch Group, Nick Hayek told the Finanz und Wirtschaft newspaper on Saturday. The world's largest watchmaker, which apart from cheap and cheerful Swatches, also owns luxury brands Breguet, Blancpain, Glashütte (pictured), Omega and Tiffany & Co, said demand for watches studded with diamonds has increased explosively and the desired quality are only available in small quantities. According to IDEX research global polished diamond prices rose sharply during the second half of June, and are showing no signs of a pull-back.

Mines Minister Obert Mpofu has rejected the monitor nominated by civil society to oversee operations at the Chiadzwa diamond fields, saying the appointment is null and void. The proposed watchdog is part of ongoing efforts to legitimise Zimbabwe's diamond trade, which was suspended in 2009 over human rights concerns at the Chiadzwa diamond fields. These concerns are still high with ongoing reports of rights abuses and rampant smuggling, all at the hands of the military, which maintains tight controls of the entire area.

Canada's Lucara Diamond Corp, building the AK6 mine in Botswana, said on Friday strike action in South Africa’s steel sector was delaying deliveries to the project, though it did not yet know the full impact on the mine's schedule. AK6 was on track so far, being 60% complete. The company’s other projects include Mothae Diamond Project, located in Lesotho, and Kavango Project, located in northeast Namibia.

A diamond trader of Surat died, while three others sustained serious injuries in the bomb blast that took place at Zaveri Bazaar in Mumbai, on Wednesday evening. Part of a group of traders that went to Mumbai for business, they were caught up in the bomb. Image from YouTube.

"Many of the Opera House diamond merchants' clients are from Israel...they are no strangers to terror and blasts," said Vasant Mehta, a leading merchant who was at home recovering from fever when the blast tore through Mumbai's congested diamond district.

Neighbour South Africa's influential Business Day reports as Zimbabwe’s shaky unity government inches ahead with extensive electoral reforms ahead of fresh elections now expected next year, the prospect of the country’s army seizing power looms large. In recent weeks, the military’s top brass has taken on a visible role in the country’s political affairs and has been brazenly opposed to security sector reforms. The military seized control of Zimbabwe's rich diamond fields in Chiadzwa in 2006 and most observers believe an international ban on these gems are being widely flouted.