Sourcing

Production at Mine Famous for Its Yellow Diamonds Slated To Restart

SourcingMar 31, 2022

Production at Mine Famous for Its Yellow Diamonds Slated To Restart

Burgundy Diamond Mines said it will begin commercial production at Ellendale before the end of 2022.

ActiveStorage-18096-20220331-440459-nr2dl0.jpg
Polished diamonds Burgundy produced at its facility in Perth. (Photo courtesy of Burgundy Diamond Mines Ltd.)
View Slideshow
Perth, Australia—One of the companies trying to revive Ellendale, the Australian mine that once produced half the world’s yellow diamonds, expects to start commercial production later this year.

Burgundy Diamond Mines Ltd. said last week a state-of-the-art bulk sample plant has been shipped to Perth, Western Australia, from South Africa and will be transported to Ellendale for installation and commissioning by the end of the second quarter.

The company will conduct bulk sampling—the process of taking a massive sample in order to evaluate the makeup and potential worth of a mineral deposit—until Q4, with commercial production expected to kick off before the end of 2022.

Burgundy has not yet established final production forecasts, CEO Peter Ravenscroft, a former Rio Tinto executive, told National Jeweler via email, but will start production at the Blina alluvial deposit and plans to expand from there.

He said the company will cut and polish all yellow diamonds from Ellendale at its facility in Perth. The facility is built around “master craftsmen” who used to cut stones from another mine famous for its colored diamonds: Rio Tinto-owned Argyle.

Also like Argyle, Burgundy plans to create an “ultra-luxury” brand to market its yellows from Ellendale, much the same way Rio Tinto created—and kept—the Argyle Pink Diamonds brand.

The Ellendale brand is set to be unveiled in Paris in July alongside a collection of yellow diamond jewelry created by Burgundy’s first partner, Paris-based Bäumer Vendôme.

 Related stories will be right here … 

Ellendale is located in the West Kimberley region of Western Australia, about 400-500 km (250 to 310 miles) west of Argyle, which closed in November 2020 after 37 years of production.

Formerly owned by Kimberley Diamonds Ltd. and perhaps best known as the mine that supplied Tiffany & Co. with its yellows, Ellendale has been shuttered since 2015.

In late 2019, the Australian government awarded mining claims for the site to two companies, Gibb River Diamonds and another Australian company, India Bore Diamond Holdings.

Burgundy is buying the mining claims that used to belong to Gibb River Diamonds under terms of a $5 million deal reached in March 2021.

Ravenscroft said Burgundy holds the rights for the Blina alluvial deposit and “key parts” of the previous Ellendale Mine leases, including the mine pits (E9 and E4) and stockpiles, as well as the alluvial deposits to the north of E9. 

In March 2021, Burgundy made an initial payment of AU$1.7 million ($1.3 million) and issued 4 million Burgundy shares to Gibb River Diamonds. 

The company said last week it has made the second payment, AU$1 million ($751,000) and 5 million shares, with a final payment of AU$4 million ($3 million) and 7 million Burgundy shares due March 23, 2023. 

If and when Ellendale restarts, it will be Australia’s only operational diamond mine.

The Latest

Stock image of a gavel
CrimeJun 14, 2024
2 Men Sentenced to Life in 2022 Murder of Detroit-Area Jeweler

In court, Daniel Hutchinson’s loved ones remembered the jeweler as a giver, a role model, and a leader.

Billie Bangle
CollectionsJun 14, 2024
Piece of the Week: Jade Trau’s ‘Billie’ Bangle

Take a walk along this bangle’s diamond “cobblestone” made from round-, pear-, and marquise-cut diamonds.

Graphic with headshots for My Next Question 2024 Las Vegas webinar
Recorded WebinarsJun 14, 2024
Watch: What Happened in Vegas in 2024

The National Jeweler editors discuss the hot topics, best jewels, and current trends that stood out during Jewelry Market Week.

Untitled design.jpg
Brought to you by
The End of an Era? Lab-Grown Diamonds' Journey Towards Price Stability

As the demand for lab-grown diamond jewelry may still be increasing, the most notable change we are likely to see is price stabilization.

Vera Wang Love True lab-grown diamond engagement ring
FinancialsJun 13, 2024
Signet Awaits Engagement Recovery as Q1 Sales Sink 9%

The company is expecting to see a 5 to 10 percent increase in engagements this year.

Weekly QuizJun 13, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
QVC HSN logo
MajorsJun 13, 2024
HSN, QVC Parent Company Faces Delisting

Qurate Retail is in the middle of a turnaround plan as it battles declining sales.

45.07-carat step cut fancy vivid yellow diamond
AuctionsJun 13, 2024
45-Carat Yellow Diamond Withdrawn from Phillips Auction

Signed jewels and period pieces stood out at the sale.

1872 x 1052 Gemolite.jpg
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional Edition

GIA®’s most advanced microscope has new features to optimize greater precision and comfort.

Marie Lichtenberg Scapular necklace
TrendsJun 13, 2024
Amanda’s Style File: For the Fathers

Showcase your dad’s personal style with a piece of fine jewelry for Father’s Day.

The Eden Rose Diamond
AuctionsJun 12, 2024
10-Carat Pink Diamond Sells for $13M at Christie’s

“The Eden Rose” is a fancy intense pink diamond that was appearing at auction for the first time.

Charles & Colvard moissanite ring
GradingJun 12, 2024
IGI to Grade Charles & Colvard Moissanite

The partnership follows the launch of the jewelry company’s B2B moissanite platform.

Edward Arthur Jewelers logo
IndependentsJun 11, 2024
Edward Arthur Jewelers to Close After 53 Years

Owner Randy Brooks, whose brother opened the Maryland jewelry store in 1971, is retiring.

Greenwich St jewelers pride raffle
IndependentsJun 11, 2024
Greenwich St. Jewelers Is Hosting a Pride Month Raffle

Tickets to win a ring are for sale until June 13, with proceeds going to a trans care nonprofit.

National Jeweler columnist Peter Smith
ColumnistsJun 11, 2024
Vegas Musings: Equal Parts Noise and Inspiration

Fresh off Jewelry Market Week 2024, Peter Smith separates the positive—retail and product innovation—from the positively annoying.

Katherine Jetter CASE Award winning ring
Events & AwardsJun 11, 2024
The 2024 CASE Awards Are Open for Entries

Submissions will be accepted now through July 17.

Swarovski New York City flagship
IndependentsJun 10, 2024
State of Retail: 4 Retail Design Trends for 2024

From lighter color palettes to the integration of AR, experts offer inspiration for jewelers in need of an aesthetic refresh.

Van Cleef & Arpels 1929 tie necklace
AuctionsJun 10, 2024
Van Cleef & Arpels Necklace From 1929 Sells for $3.6M at Auction

The rare piece went home with a Sotheby’s executive.

Woman shopping
SurveysJun 10, 2024
Consumer Confidence Rises in May Despite Anxiety About the Future

Expectations of a recession rose for the second consecutive month.

Sotheby’s watch executives Sam Hines and Geoff Hess
WatchesJun 10, 2024
Sotheby’s Makes Changes at Top of Watch Division

Sam Hines returns to the auction house as chairman, watches, while Geoff Hess moves up to the role of global head of watches.

Elephants wading in the Okavango Delta in Botswana
SourcingJun 10, 2024
State of the Diamond Industry: Botswana Beyond Diamonds

From moringa to ecotourism in the Okavango Delta, the country and its leaders are exploring how Botswana can diversify its economy.

Seymour Holtzman
IndependentsJun 07, 2024
Seymour Holtzman of CD Peacock Dies at 88

He was remembered by loved ones as “an authentic, original American entrepreneur.”

45 carat yellow diamond
AuctionsJun 07, 2024
Phillips to Auction 45-Carat Yellow Diamond

The stone features rare step-cut faceting and is estimated to sell for up to $3.5 million.

Tabayer Oera ‘Unity’ Ring
CollectionsJun 07, 2024
Piece of the Week: Tabayer’s Oera ‘Unity’ Ring

Crafted in Fairmined gold with a rainbow of agate, the ring is a joyful symbol of inclusivity, diversity, and solidarity.

INS Show_NJ Supplier eBlast Banner.jpg
Supplier BulletinJun 06, 2024
Join INSTORE This August in Rosemont!

Grab Your Free Show Badge Today. Sponsored by INSTORE

Sarah Alden
IndependentsJun 06, 2024
GoFundMe Launched Following Jeweler’s Murder

Vintage jewelry seller Sarah Alden, 53, died after a brutal attack at the Venice Canals in Los Angeles.

Sylvester Stallone Sotheby’s watch
AuctionsJun 06, 2024
Sotheby’s Auction of Sylvester Stallone’s Watches Was a Knockout

The auction house sold all 11 watches from the “Rocky” star’s collection, with his Patek Philippe Grandmaster Chime setting a new record.

Stock image of a gavel
CrimeJun 06, 2024
2 Men Found Guilty in 2022 Murder of Detroit-Area Jeweler

A jury convicted Marco Bisbikis and Roy Larry in the murder-for-hire plot targeting Daniel “Hutch” Hutchinson, owner of Hutch’s Jewelry.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy