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.
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
CrimeJun 18, 2025
7 Men Indicted in $100M Brinks Jewelry HeistThe heist happened in Lebec, California, in 2022 when a Brinks truck was transporting goods from one show in California to another.
AuctionsJun 18, 2025
Historic ‘Marie-Thérèse Pink’ Diamond Fetches $14M at Christie’sThe 10-carat fancy purple-pink diamond with potential links to Marie Antoinette headlined the white-glove jewelry auction this week.
EditorsJun 18, 2025
Q&A: Caryl Capeci Dives Into Cruise Jewelry ShoppingThe Starboard Cruises SVP discusses who is shopping for jewelry on ships, how much they’re spending, and why brands should get on board.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
AuctionsJun 18, 2025
16th-Century ‘Gresham Grasshopper’ Ring Sells for $56KThe historic signet ring exceeded its estimate at Noonans Mayfair’s jewelry auction this week.
Weekly QuizJun 12, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsJun 18, 2025
Kirk Kara Celebrates 135 Years With New JewelsTo mark the milestone, the brand is introducing new non-bridal fine jewelry designs for the first time in two decades.
TechnologyJun 18, 2025
Alex Brown Named President of Smithee GroupFounder and longtime CEO Ben Smithee will stay with the agency, transitioning into the role of founding partner and strategic advisor.
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.
EditorsJun 17, 2025
The Best New Jewelry from Couture 2025, Part 1Associate Editor Natalie Francisco shares 20 of her favorite pieces from the jewelry collections that debuted at Couture.
ColumnistsJun 17, 2025
Peter Smith: Is Your Comp Plan a Hiring Hindrance?If you want to attract good salespeople and generate a stream of “sleeping money” for your jewelry store, then you are going to have to pay.
AuctionsJun 17, 2025
Colored Gemstones, Signed Jewels Shine in Sotheby’s High Jewelry SaleThe top lot was a colorless Graff diamond, followed by a Burmese ruby necklace by Marcus & Co.
MajorsJun 17, 2025
Amanda Gizzi Gets a Promotion at JAGizzi, who has been in the industry since 2001, is now Jewelers of America’s senior vice president of corporate affairs.
MajorsJun 17, 2025
Kering Names Automotive Exec as Its New CEOLuca de Meo, a 30-year veteran of the auto industry, will succeed longtime CEO François-Henri Pinault.
EditorsJun 16, 2025
Q&A: Bogolo Joy Kenewendo on Mining, Tariffs, and the Energy of Las VegasFollowing visits to Vegas and New York, Botswana’s minerals minister sat down with Michelle Graff to discuss the state of the diamond market.
IndependentsJun 16, 2025
Greenwich St. Jewelers Launches Commitment Campaign Celebrating LGBTQ+ CouplesThe “Your Love Has the Perfect Ring” campaign showcases the strength of love and need for inclusivity and representation, the jeweler said.
MajorsJun 16, 2025
Ivette Nersesyan-Stephanopoulos Joins Tiffany & Co.The former De Beers executive is the jewelry house’s new director of high jewelry for the Americas.
MajorsJun 16, 2025
Catbird Names WNBA Star Nyara Sabally as Its New Brand AmbassadorThe New York Liberty forward is the first athlete to represent the Brooklyn-based jewelry brand.
CollectionsJun 13, 2025
Piece of the Week: Robinson Pelham’s Pear EarringsTake a bite out of the 14-karat yellow gold “Fruits of Love Pear” earrings featuring peridots, diamond stems, and tsavorite leaves.
Events & AwardsJun 13, 2025
AGA to Host ‘Diamonds From Mine to Market’ Education ConferenceThe one-day virtual event will feature speakers from De Beers, GIA, and Gemworld International.
EditorsJun 12, 2025
15 Questions With Jewelry Photographer Ella SophieThe California-based creative talks jewelry photography in the modern era and tackles FAQs about working with a pro for the first time.
AuctionsJun 12, 2025
Vintage Patek Philippe From the ‘50s Sells for $4M at Sotheby’s Al Capone’s pocket watch also found a buyer, though it went for less than half of what it did at auction four years ago.
Events & AwardsJun 12, 2025
Gabriel Love Foundation Introduces Scholarship Honoring Elias GabrielThe foundation has also expanded its “Stronger Together” initiative with Jewelers for Children.
AuctionsJun 12, 2025
Former De Beers Exec Celine Assimon Joins BonhamsAssimon is the auction house’s new chief commercial officer.
EditorsJun 11, 2025
Q&A: Al Cook on Differentiating Natural Diamonds, Traceability, and TariffsThe De Beers Group CEO discusses the company’s new “beacon” program, the likelihood diamonds will be exempt from tariffs, and “Origin.”
MajorsJun 11, 2025
Pandora Bets on Las Vegas for First North American FlagshipThe Danish jewelry giant hosted its grand opening last weekend, complete with a Pandora pink roulette wheel.
GradingJun 11, 2025
Tiffany Stevens Exits IGI, Lab Appoints New Board LeaderIndustry veteran Anoop Mehta is the new chairman and independent director of the IGI board.
Events & AwardsJun 11, 2025
Kering Announces Winners of Sustainability-Focused AwardThe winners of the inaugural “Kering Generation Award x Jewelry” are student Lee Min Seo and China-based startup Ianyan.
