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.
The Latest
EditorsJun 11, 2026
This Was the Best Animal Jewelry in Las Vegas From lions and hippos to snails and fish, Senior Editor Lenore Fedow wrangles her picks for cutest jewelry critters in Las Vegas.
MajorsJun 11, 2026
Former Cartier Creative Director To Head Chanel’s Jewelry Creation StudioMarie-Laure Cérède will join Chanel as the new director of its jewelry creation studio, starting in October.
Lab-GrownJun 11, 2026
Smiling Rocks’ ‘Wish Jar’ Generates 100+ Wishes in Las Vegas At the JCK show, the lab-grown diamond brand teamed up with Jewelers for Children to support Make-A-Wish India.
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in VegasAs gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.
AuctionsJun 10, 2026
31.62-Carat ‘Azure Blue’ Diamond Sells For $8M+ at Christie’sIt was a banner day for blue gemstones, with another blue diamond topping $8 million and a 41-carat sapphire going for $2.3 million.
Weekly QuizJun 11, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsJun 10, 2026
Saks Global Receives Bankruptcy Court Approval for ReorganizationThe approval means the retailer is on track to exit bankruptcy proceedings this summer.
CrimeJun 10, 2026
2 Suspects Arrested in Texas Jewelry Store RobberyThe men are believed to be part of the group of several masked suspects that robbed Marc Robinson Jewelers in April.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
CollectionsJun 10, 2026
Sylvie Debuts ‘Elevated’ Bridal Collection Inspired By Designer’s RingThe bridal-focused brand is also launching its Custom Atelier this summer, a digital custom design tool for its authorized retailers.
EditorsJun 09, 2026
Q&A: Al Cook on the Lab-Grown ‘Bubble,’ Dwindling Diamond Supply The De Beers Group CEO also discussed tariffs, Desert Diamonds, and the pending sale of De Beers in an interview with Michelle Graff.
MajorsJun 09, 2026
Wilkerson's Russ Whitehouse RetiresThe industry veteran is bringing his 56-year run in the fine jewelry sector to an end.
Events & AwardsJun 09, 2026
Pride Month Panel to Highlight LGBTQ+ Jewelry VoicesThe panel discussion will feature LGBTQ+ leaders across the jewelry, luxury, and creative industries.
CollectionsJun 09, 2026
Marie Lichtenberg’s New Capsule Collection Is a Smash, LiterallyInspired by a locket that got run over, the “Smash” capsule collection reimagines the shape of Lichtenberg’s signature style.
MajorsJun 09, 2026
Frederick Goldman Names Director of Sales for SoutheastThe company has promoted Katherine Whitacre to the role.
MajorsJun 08, 2026
Stuller Expands Selection of Lab-Grown Diamonds, Demi-Fine JewelryThe jewelry manufacturer has added Taylor Swift-esque diamond shapes, and more silver, gold vermeil, and gold-plated jewelry.
SourcingJun 08, 2026
Sally Morrison to Depart De Beers This Summer Morrison has been marketing diamonds on and off since the early 2000s and said she is leaving to “pursue new projects.”
TrendsJun 08, 2026
Amanda’s Style File: June’s Birthstone TrioThose born in June can celebrate with pearl, alexandrite, and moonstone jewelry.
TechnologyJun 08, 2026
Overnight Mountings Launches Ring Builder PlatformThe platform allows retailers to guide clients through a customizable engagement ring buying experience in a branded interface.
IndependentsJun 05, 2026
Pennsylvania Jewelry Store To Close After 79 YearsJim Springer, owner of Dunkelberger’s Fine Jewelry, is heading into retirement.
SurveysJun 05, 2026
Consumers to Cut Back on Spending Amid Rising Prices, Survey Shows When conducting its May consumer confidence survey, The Conference Board asked extra questions about consumers’ budgeting strategies.
CollectionsJun 05, 2026
Rebel Jewelry’s Charm Symbolizes Perseverance for Pride MonthThe “Tunnel” charm, our Piece of the Week, celebrates Pride Month with its design inspired by hope and the light at the end of the tunnel.
SourcingJun 05, 2026
State of Diamonds: The Way Forward for Natural DiamondsThe jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.
AuctionsJun 04, 2026
Treasures from Maurice Tempelsman’s ‘Marvelous’ Life Head to AuctionUp for auction at Sotheby’s, the collection of Tempelsman’s personal effects includes a Cartier Tank watch Jackie O. gifted him.
CollectionsJun 04, 2026
Buddha Mama to Spend the Summer in AspenThe Miami-based fine jewelry brand will host its first summer residency in the Colorado mountain town from June 5 to Aug. 23.
MajorsJun 04, 2026
AGS Honors Late Peter Yantzer, Holds Time Capsule CeremonyThe organization also announced its international board of directors for the 2026-2027 term.
MajorsJun 04, 2026
Neiman Marcus’ Downtown Dallas Store to Close in SeptemberSaks Global confirmed the closure this week, spelling the end for a store that’s been part of downtown Dallas for more than 100 years.
ColumnistsJun 03, 2026
Peter Smith: When Top Talent Leaves and What It Says About YouSmith discusses how managers should handle a top performer's exit, warning that a poor response could have a lasting impact.
