Sourcing

Burgundy Diamond Backing Out of Ellendale Mine Deal

SourcingMar 23, 2023

Burgundy Diamond Backing Out of Ellendale Mine Deal

Burgundy has opted not to exercise its option to buy the mining claims Gibb River Diamonds currently owns.

20230323_Ellendale yellows.jpg
Rough yellow diamonds from the Ellendale mine in Western Australia. Burgundy Diamond Mines Ltd. announced this week it no longer plans to buy Gibb River Diamond’s claims at the mining site, and will cease all activity there immediately.
Perth, Australia—Burgundy Diamond Mines Ltd. announced this week it is abandoning its plan to buy a portion of the Ellendale diamond mine in Western Australia. 

Burgundy signed a two-year option deed on the site with Gibb River Diamonds in March 2021. The deal called for Burgundy to acquire 100 percent of Gibb River’s Ellendale claims as well as Blina, an alluvial diamond deposit that lies just northwest of Ellendale.

On Monday, Burgundy announced it had opted not to exercise the option deed and would be ceasing development of the project immediately. 

CEO Kim Truter said the decision was in the “best interests of shareholders in line with the strategic direction of the company.” 

 Related stories will be right here … 

Burgundy’s decision comes just a week after the mining company announced it has entered into an agreement to buy the Ekati Diamond Mine in Canada’s Northwest Territories from Arctic Canadian Holdings LLC.

The deal is valued at $136 million.

When announcing the deal, Burgundy seemed bullish on owning both mines, noting the acquisition of Ekati would make it one of the largest stock exchange-listed diamond companies in the world.

“The acquisition of Ekati is complementary to Burgundy,” Truter said at the time. “We’ve been purchasing rough fancy-colored diamonds from Ekati in recent years, then cutting and polishing them in our facilities in Perth to go into high-end jewelry designs, as part of our vertically integrated business model.”

Taking a cue from Rio Tinto and its Argyle Pink Diamond brand, Burgundy also had developed a brand for the mine’s output, Maison Mazerea.

On Monday, however, the mining company said it instead has opted to focus solely on completing the acquisition and integration of Ekati into its portfolio. 

The company declined to elaborate on its decision but did confirm to National Jeweler it will retain its cutting and polishing facility in Perth, Western Australia, which it called a “key component” of its vertically integrated business model. 


Ellendale is located in the Western Australia’s West Kimberley region, a few hundred miles west of Rio Tinto’s Argyle Diamond Mine, the famous source of pink diamonds that closed in 2020.

Ellendale is known for producing fancy yellow diamonds that once supplied retailers worldwide, including Tiffany & Co.

According to a 2013 issue of Gems & Gemology, the Gemological Institute of America’s quarterly journal, the first reported findings of diamonds at Ellendale came in 1976.

The site holds a special place in diamond history, as it was there scientists discovered that olivine lamproite could serve as a host rock for diamond. (Prior to the discovery of diamonds at Ellendale, it was believed only kimberlite rock could host diamonds.)

Large-scale mining didn’t start until 2002 when Kimberley Diamonds Ltd. gained control of Ellendale.

Kimberley mined the site until closing it in 2015, citing a decline in the size and quality of the diamonds it was recovering.  

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

In a statement issued Monday, Gibb River said it is “very excited” about Burgundy’s decision to exit the project as it believes Ellendale has “excellent potential as a company-making standalone diamond development project.”   

The company said Executive Chairman Jim Richards recently returned from visiting the mining site and it “very much looks forward to progressing plans for the next phase of development at Ellendale.” 

Further details will be released at a later date.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

GIA iD100® Technology
Supplier BulletinJul 03, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Madison Keys in Brilliant Earth campaign
MajorsJul 03, 2025
Brilliant Earth Names Tennis Star Madison Keys as Its New Ambassador

The 2025 Australian Open champion is the jewelry brand’s first athlete ambassador.

Muse Nordstrom shop-in-shop
MajorsJul 03, 2025
Muse Sets Up Shop in Nordstrom’s New Jewelry Hall

The West Village jewelry boutique’s new shop-in-shop is the cornerstone of Nordstrom’s revamped jewelry hall.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Yeprem Golden Strada Statement Necklace
CollectionsJul 03, 2025
Piece of the Week: A Firework of Diamonds From Yeprem

The brand’s “Golden Strada” statement necklace features round, marquise, and pear diamonds that sparkle like Fourth of July fireworks.

Weekly QuizJul 02, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Stock image of police cars with their lights on
CrimeJul 03, 2025
JSA Shares Holiday Weekend Security Tips Amid Spike in Burglaries

JSA’s Scott Guginsky provided a list of nine security measures jewelers should observe while locking up for the long weekend.

Exterior and entryway of Boucheron’s Los Angeles Flagship
MajorsJul 02, 2025
Boucheron Looks to LA for First West Coast Flagship

Located on Rodeo Drive, the store’s design was inspired by Hollywood and Los Angeles culture.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Exterior of Marco Bicego Milan Flagship
MajorsJul 02, 2025
Marco Bicego Opens Milan Flagship

The new location continues the brand’s celebration of its 25th anniversary.

Chrono24 Time Is Our Thing campaign image
WatchesJul 02, 2025
Chrono24 Revamps Brand, Launches New Campaign

The online watch marketplace’s “Time Is Our Thing” campaign highlights the importance of time.

Counterfeit Pandora jewelry in bags and boxes
CrimeJul 02, 2025
Pandora, Amazon Partner to Uncover Counterfeit Jewelry Network

Working with Amazon’s Counterfeit Crimes Unit and law enforcement, Pandora helped to shut down a large-scale counterfeit network in China.

Cast Issa Rae
MajorsJul 01, 2025
Cast Closes Business, Plans for Relaunch

The jewelry company has closed its three California brick-and-mortar stores, as well as its online shop, for now.

Eve Goldberg, Matthew Denatale, Willie Lopez, Benjamin Goldberg
Events & AwardsJul 01, 2025
William Goldberg Diamonds, FIT Partner for Apprenticeship Program

The company is providing the opportunity for an FIT student to work alongside master diamond cutter Willie Lopez in its workshop.

Elie Hannoush
IndependentsJul 01, 2025
Elie Hannoush, Founder of Hannoush Jewelers, Dies at 73

He is remembered for his successful entrepreneurship, generosity, and dedication to his family.

Claire’s store
MajorsJul 01, 2025
Claire’s Is Looking for a Buyer, Report Says

The jewelry store chain has reportedly been struggling with costs related to tariffs as well as tough retail competition.

Mindi Mond Spike Earrings
TrendsJul 01, 2025
Amanda’s Style File: Red Hot Rubies

Welcome warm summer days with red hot rubies perfectly chosen as July’s birthstone.

The Story of Everything Campaign, Toadstool Mushroom and Cosmic Egg
CollectionsJun 30, 2025
State Property’s New Jewelry Tells ‘The Story of Everything’

Co-founders Afzal Imram and Lin Ruiyin brought their son’s story of a cosmic egg, toadstool, and railroad to life in their new collection.

Smart Age Solutions CEO Emmanuel Raheb
ColumnistsJun 30, 2025
The Smart Lab: Why Q3 Is the Secret Weapon For Holiday Jewelry Sales

The best time to prepare for the holiday season is right now, according to columnist Emmanuel Raheb.

Morgan Keefe
Events & AwardsJun 30, 2025
AGA Names Recipient of 2025 Gemological Education Scholarship

This year’s winner is Morgan Keefe, who is currently studying at GIA to be a gemologist.

The Jewelry Book
IndependentsJun 30, 2025
Melanie Grant’s New Book Explores 200 Years of Jewelry

“The Jewelry Book” comes out this September.

Gemist
TechnologyJun 27, 2025
Gemist Raises $6M in Funding to Scale Jewelry Tech Platform

The company is focused on modernizing the custom jewelry buying experience with e-commerce tools like product visualization and 3D styling.

Jeff Preolo, David Stout, Levi Higgs, David Benavides
IndependentsJun 27, 2025
David Webb Announces New Hires, Promotions

Following its recent acquisition, the storied brand has updated its leadership team and regional managers.

Blake Graham and Jessica Kohoutek
Events & AwardsJun 27, 2025
AGS, GIA Announce Beatrice Shipley Scholarship Winner

AGS also named the recipient of its “Women in Leadership” scholarship.

Buddha Mama Monstera Ring
CollectionsJun 27, 2025
Piece of the Week: Buddha Mama’s ‘Monstera’ Wrap Ring

The 20-karat yellow gold and diamond wrap ring is modeled after the Monstera plants in the garden of the brand’s Miami villa.

Cashier handing Rocksbox bag to customer
MajorsJun 26, 2025
Why Rocksbox Is Opening Stores As Signet Jewelers Downsizes

Rocksbox President Allison Vigil shared the retailer’s expansion plans, and her thoughts on opening stores in malls.

Penny Ruston
IndependentsJun 26, 2025
Penny Ruston Dies at 80

The creator of the WJA Chicago chapter is remembered as a champion for women in the jewelry industry and a loving grandmother.

Stock image of woman shopping
SurveysJun 26, 2025
After Recovering in May, Consumer Confidence Dips in June

The decline was consistent across age groups and almost all income groups, with tariffs and inflation still top of mind.

×

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