SourcingMar 02, 2023
Rio Tinto Making $40M Investment in Diavik Diamond MineSourcingMar 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.
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 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.”
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.
Editors' Picks
Sponsored by
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.
More on Sourcing
The Latest
CrimeApr 22, 2026
New Mexico Couple Pleads Guilty to Selling Fake Native American JewelryThe pair falsely claimed their jewelry was made by Navajo artists, but it was imported from Vietnam.
AuctionsApr 22, 2026
Roberta Flack’s Jewelry Is Going Up for AuctionJulien’s Auctions is selling the musician’s fine and fashion jewelry alongside her clothing, gold records, and other memorabilia.
CollectionsApr 22, 2026
British Museum Curator Pens Book on ‘The Tudor Heart’Rachel King’s book dives into the history of the pendant believed to have belonged to Henry VIII and his first wife, Katherine of Aragon.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
Events & AwardsApr 22, 2026
Here’s What Sy Kessler Has on Tap for Las Vegas The company will have deals on precious metals testers as well as the latest in lab-grown diamond detection technology and security.
Weekly QuizApr 16, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
WatchesApr 21, 2026
Coco Chanel Enters the Game with New Watch CollectionGabrielle “Coco” Chanel is a character in the “Coco Game” collection of watches and the queen in its first haute horlogerie chessboard.
IndependentsApr 21, 2026
Meet Jewelers of America’s 2026 ‘20 Under 40’ ClassThe annual list honors rising professionals on the retail and supply sides of the jewelry industry.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeApr 21, 2026
Customs Nabs 1,500 Pieces of Counterfeit Jewelry Bound for NYCSeized in Kentucky, the packages include fake Cartier, Tiffany & Co., Chanel, and Fendi jewelry.
CrimeApr 20, 2026
Queens Man Convicted in Bludgeoning Death of Pawn Shop OwnerRodolfo Lopez-Portillo faces 25 years to life in prison after being found guilty in the March 2022 beating death of Arasb Shoughi.
TrendsApr 20, 2026
Beth Bernstein, Sonia Esther Soltani Pen New Jewelry Book“Jewelry Creators: Dynamic Duos and Generational Gems” highlights the relationships among 22 influential designers, brands, and gem dealers.
Events & AwardsApr 20, 2026
Atlanta Jewelry Show’s Spring Event Is Hitting the RoadThe AJS Spring 2027 show will be held in Savannah, Georgia, with future shows taking place in other Southeast cities.
MajorsApr 20, 2026
Kendra Scott Names New CFO, Chief Business OfficerThe jewelry retailer plans to open 20 new stores this year and expand into new product categories.
TrendsApr 17, 2026
New (Groundbreaking) Floral Jewelry for Spring 2026Flower motifs are the jewelry trend blooming amongst the new collections that debuted this spring.
MajorsApr 17, 2026
QVC Group Files for Chapter 11 BankruptcyThe retailer reported an 8 percent decline in annual sales as it struggles under the weight of billions of dollars of debt.
CollectionsApr 17, 2026
Edina Kiss’ Earrings Are the Devil on Your ShoulderThe “Devil” drop earrings, our Piece of the Week, are part of designer Edina Kiss’ new namesake jewelry line that she will show at Couture.
CrimeApr 17, 2026
FBI Issues Warning to Refineries, Retailers Due to High Price of GoldThe alert states that burglary crews are targeting jewelry businesses and details how jewelers and refineries can protect themselves.
WatchesApr 16, 2026
Cartier Brings Back the RoadsterThe “watchmaker of shapes” debuted the reworked version of the vintage sports car-inspired timepiece at Watches & Wonders.
IndependentsApr 16, 2026
Edge Retail Academy Updates Leadership TeamAs demand for jewelry retail coaching grows, the company has established a dedicated business coaching leadership team.
MajorsApr 16, 2026
Stuller’s Latest Mountings Catalog Is Out NowThe “Mountings 2026-2027” catalog showcases Stuller’s largest and most diverse assortment to date with more than 400 new mounting styles.
PodcastsApr 15, 2026
Episode 4: The Natural Diamond DilemmaSally Morrison and Mark Klein discuss De Beers’ first beacon in 16 years and the mistake the industry made with lab-grown diamonds.
MajorsApr 15, 2026
Spark Creations’ Randy McKenzie Dies at 72 McKenzie spent 45 years with Spark Creations and is remembered for being kind, dedicated, and hardworking.
WatchesApr 15, 2026
These Are the New Rolex Watches for 2026Rolex focused exclusively on the Oyster Perpetual this year, as the model is celebrating its 100th anniversary.
FinancialsApr 15, 2026
Kering’s Jewelry Shines in Q1, Gucci’s Struggle ContinuesThe luxury giant discussed the Middle East conflict and its transformation plans, hinting at a stronger jewelry presence in North America.
TechnologyApr 15, 2026
This Jewelry Brand’s Video Series Is Up for a Webby Award“Diamond Divas,” a social media reality series by Shahla Karimi Jewelry, is nominated in the “Best Social: Fashion & Beauty” category.
FinancialsApr 14, 2026
LVMH’s Q1 Sales Sink 6% Amid Middle East ConflictPlus, how Saks Global’s bankruptcy affected the luxury giant’s first quarter.
SourcingApr 14, 2026
International Jade Summit to Return to MontereyPresented by Mason-Kay Jade, the summit, in its second year, will again be held during the Monterey Bay Jade Festival.
