Brand diamond industry as collective biz, says Modi
Dec 26 The recession should be perceived as an opportunity and not as a challenge, said the Gujarat Chief Minister, Mr Narendra Modi, to an appeal by Dr Amit Mitra to bail out the gems and jewellery industry facing rough weather. They were speaking at Sparkle, the international conference and exhibition on gem and jewellery, organised jointly by FICCI and the State as a precursor to Vibrant Gujarat, annual investor’s summit.
NO vat
“Nobody remembers that Gujarat does not put VAT on diamonds and that the gems and jewellery sector is the biggest benefactor of the Rs 1,500-crore Jyotigram Yojna. But during the bad times, the industry shifts all the blame to a labourer which is not fair.
“The handful of people at the top of the business should also bear the brunt of it and think of innovative ways to stabilise,” was his clear message.
Job cuts
The Gitanjali Group Managing Director, Mr Mehul Choksi, was reported as saying that around one lakh people have been laid off so far in the industry.
The diamond industry has gone through a rough patch, especially rough diamond, which is seeing an excessive of supply against drastically reduced demand.
Mr Narendra Modi invited the industry people to come together to brand the industry as a collective and not as separate family businesses as they are today (around 95 per cent of the total industry) to increase their worth in the international market
N.W.T. diamond mine caught in Rio Tinto fallout
Operations at the N.W.T.’s Diavik diamond mine will be scaled back as part of cost-cutting measures announced Wednesday by mining giant Rio Tinto.
The British company, which owns 60 per cent of Diavik, plans to lay off 14,000 people at its operations around the globe, which may include some in the Northwest Territories.
Although it’s not yet known if jobs will be shaved from its Diavik operation, a company statement said it will look at other reductions first.
Several construction projects at the mine, located 300 kilometres northeast of Yellowknife, will be put on hold, including the small diamonds project announced earlier this year, it said.
“Capital projects will only progress if they are essential to worker health and safety, protection of the environment, and those that ensure ongoing operations,” it said.
While construction work on its new underground project “remains largely unchanged at this stage,” plans to begin mining underground have been postponed until the third quarter of 2009, it said.
The less expensive open pit mine work will continue as planned, it said.
The company will continue exploring for new deposits, but it will focus its efforts on one main area with high potential.
Cost management will be sought through efficiency and productivity gains and by finding and removing less efficient or less value adding activities,” it said, adding each individual and department will be expected to contribute.
About 700 people work at the Diavik mine which is jointly owned by Rio Tinto subsidiary and the Harry Winston Diamond Corp.
Developments in the South African heavy minerals industry
South Africa’s heavy minerals industry stands favourably within the world market, producing just over 40% of the world’s zircon output, states a report released by the directorate of mineral economics, entitled ‘An overview of South Africa’s Zircon Industry and the Role of Black Economic-Empowerment (BEE)’.
A number of mining projects are currently under development in South Africa to maintain their place in the heavy minerals market. Read more
Marine Diamond Mining Picks Up
DIAMOND Fields International (DFI) has recorded improved diamond production after a seasonal downturn from marine diamond mining joint operations with Bonaparte Diamond Mines.
The company said marine diamond production from the JO mining area in DFI’s ML111 licence off Luederitz improved this month following the recoveries of the previous two months which were seasonally affected by winter conditions.
Production for the month of September was 1 618 carats from 4 060 diamonds with an average size of 0,40 carats per stone because mining during that month was largely confined to a single airlift operation.
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