World

Quest for world’s biggest diamonds gives De Beers a headache

To the southeast of the teeming herds of wildlife in the Okavango Delta in Botswana, an offshoot of the Lundin mining dynasty is extending its search for the world’s biggest diamonds.

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Lucara Diamond Corp. is sinking an 800-meter (2,624-foot) shaft to ensure the kimberlite orebodies at its Karowe mine keep producing the 1,000-carat-plus gems that set it apart.

However, the $550 million investment is potentially less significant than the second prong of the miner’s strategy.

That involves changing the way diamonds are sold, indirectly posing a challenge to industry giant De Beers.

The unit of Anglo American Plc, which accounts for most output in top producer Botswana, is locked in a battle with the government over how the spoils of the diamond trade are shared.

While Lucara’s operations are dwarfed by De Beers, Botswana is using its sales model as a bargaining chip in negotiations with the No. 1 diamond company.

Lucara sells about a quarter of its stones using a method pioneered by De Beers: Cutters view packages of diamonds before bidding on them.

But most of its stones — including those over 10.8 carats in size and known in the industry as specials — are sold under an agreement with HB Antwerp.
For those, the company receives polished rather than rough prices and the government earns more revenue.

“The model is disruptive,” said Rafael Papsimedov, a co-founder of HB Antwerp. “It’s delivering value, transparency and data. It empowers the miner and the nation to move to the next level.”

That model is complicating the relationship between De Beers and Botswana, as negotiations over an extension of their more than 50-year partnership drag on.

Botswanan President Mokgweetsi Masisi in September praised Lucara’s arrangement with HB Antwerp, saying it had “enormous scalable potential. Earlier this month, he threatened to walk away from a deal with De Beers.

Still, that’s easier said than done. Lucara’s production from Karowe, its only mine, was about 336,000 carats last year, with company revenue of $213 million.

By comparison Debswana, the joint venture between Botswana and De Beers, produces about 22 million carats and its 2022 revenue was just under $4.6 billion. The government is said to get 80 percent of revenue from the joint venture.

Moreover, Debswana’s operations require huge capital investment, which can only be funded by the largest mining companies.

Jwaneng, the world’s biggest diamond mine, is undergoing a $1.2 billion expansion and a similar one is planned at Orapa. To extend operations for decades, an underground shaft will need to be dug at Jwaneng at a cost of at least $5 billion.

Biggest Gems

While Lucara can’t compete on scale, its biggest diamonds are hard to match. In 2019, it unearthed the 1,758-carat Sewelo — the world’s No. 2 stone after South Africa’s Cullinan diamond — which was turned into a collection of Louis Vuitton jewelry.

Two years later, it found a 1,175 carat gem and in 2015 the 1,109 carat Lesedi la Rona diamond, a discovery that triggered a 34 percent jump in Lucara’s shares.

Now the company is using so-called XRT technology to scan mined ore for the presence of large diamonds so they don’t get damaged in the extraction process.

“We are the only diamond mine in the world to have recovered three diamonds in excess of 1,000 carats in size,” Eira Thomas, Lucara’s chief executive officer, said in a presentation at the mine earlier this month. “We believe that our mine accounts for about 25 percent of the world’s largest diamonds.”

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World

Crown Prince of Abu Dhabi meets with CEOs of leading Norwegian companies

H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, has met with a group of CEOs from leading Norwegian companies, as part of their participation in the UAE-Norway Investment Forum, held alongside his official visit to the Kingdom of Norway.

During the meeting, H.H. Sheikh Khaled bin Mohamed bin Zayed underscored the UAE leadership’s commitment to strengthening economic cooperation with its international partners.

He highlighted that investment in innovation and knowledge is a cornerstone for achieving sustainable development, noting that enhancing collaboration with Norwegian companies across key sectors will open new avenues for mutual economic growth between the two countries.

The UAE-Norway Investment Forum, taking place in Oslo, aimed to highlight available investment opportunities and strengthen trade relations between the UAE and Norway, fostering shared interests and supporting innovation and knowledge-based economic visions.

-wam

World

At the Indonesia International Book Fair 2024, TRENDS inaugurates 10th global office, releases four books

As part of its Asian research tour, partnership with Aletihad News Center, and
primary sponsorship of the Indonesia International Book Fair 2024, TRENDS
Research & Advisory inaugurated its office in Jakarta, marking its 10th location
worldwide. It also released four books in Indonesian.
The inauguration event was attended by ambassadors of the UAE, Bahrain, and
Jordan to Indonesia, chairpersons of the UAE and Indonesian Publishers’
Associations, the Director of TRENDS’ Jakarta office, and a group of researchers
and academics.
Speaking at the event, Dr. Mohammed Abdullah Al-Ali, CEO of TRENDS
Research & Advisory, stated that TRENDS’ international offices—set to reach 15
by the end of 2024—aim to enhance the Center’s research efforts and deepen its
role in disseminating knowledge, thus serving as a global knowledge bridge.
He emphasized, “At TRENDS, we believe in the importance of cooperation
between think tanks and prioritize this endeavor. We believe the TRENDS office in
Jakarta will enhance the exchange of knowledge and ideas between think tanks in
Asia and the Middle East, opening new horizons for collaboration in various
fields.”

Four books in Indonesian
As part of the Jakarta office’s inaugural activities, four books were released in
Indonesian, including the 11th and 12th books of the Muslim Brotherhood
Encyclopedia and Global Trends in AI and Automation and the Future of
Competition between Man and Machine: An Analytical Forward-looking Vision.

Hostility to Arab states
The 11th book of the Muslim Brotherhood Encyclopedia, The Concept of the State
According to the Muslim Brotherhood, highlights its hostile stance toward Arab
states since its inception. The group views them as an obstacle to its ascent to
power. It opposed the modern principles upon which these states were built,
considering them incompatible with the group’s unique interpretation of Islam,
which it claimed to embody exclusively.

Exclusion of nonconformists
The 12th book, The Muslim Brotherhood: Rejection of Tolerance and Exclusion of
Nonconformists, examines the Muslim Brotherhood’s stance towards
nonconformists, individuals, and entities. The book reveals the group’s binary view
of the world, categorizing others as allies or adversaries. It ties these relationships
to the Brotherhood’s internal power struggles and self-serving interests.

Global Trends in AI
The third book, Global Trends in AI, explores significant developments in AI and
its impact on various aspects of life, including the economy, society, and
governance. It also offers a comprehensive analysis of technological advancements
in AI, its applications across sectors, the ethical and social challenges it presents,
and its future trajectory.

Automation

The fourth book, Automation and the Future of Competition between Man and
Machine: An Analytical Forward-looking Vision, addresses the growing challenges
faced by the human workforce in the face of widespread automation and AI
applications. The book concludes that while automation presents a significant
challenge to the labor market, it simultaneously creates new opportunities. It
emphasizes the importance of preparing for this shift through skills development,
continuous education, and adopting economic and social policies that support the
workforce.

Prominent pavilion and active presence
The TRENDS’ pavilion at the Indonesia International Book Fair has attracted
numerous visitors, including academic researchers and officials, such as the
ambassadors of the UAE, Bahrain, Qatar, Jordan, and Turkey. Additionally,
chairpersons of Arab and Indonesian publishers’ associations, authors, publishers,
and students visited the pavilion. All were impressed with and praised TRENDS’ diverse, valuable publications. They also commended TRENDS’ active
international presence and ability to address global developments with rigorous
analytical research.
Dr. Mohammed Abdullah Al-Ali honored the esteemed guests, including
ambassadors of the UAE and Bahrain to Indonesia, Wedha Startesti Yudha,
Chairperson of the Indonesia International Book Fair Committee, Arys Hilman
Nugraha, Chairman of the Indonesian Publishers Association, and others,
presenting them with TRENDS’ publications and commemorative shields.
Additionally, he awarded TRENDS’ Research Medal to Ni Made Ayu Martini
Indonesian Deputy Minister of Marketing, Tourism and Creative Economy
It is worth noting that during its current Asian research tour, TRENDS announced
the launch of the TRENDS Research Medal, awarded to individuals who make
significant contributions to the development of scientific research and promote collaboration with TRENDS in strengthening a culture of research across various fields.

World

US determined to prevent full-scale war in Middle East, Joe Biden tells UNGA79

US President Joe Biden highlighted the US Administration’s determination to prevent a wider war that engulfs the entire Middle East region, noting that a diplomatic solution “remains the only path to lasting security to allow the residents from both countries to return to their homes on the border safely”.

In remarks he made today before the 79th Session of the United Nations General Assembly (UNGA79), the US President said, “Full-scale war is not in anyone’s interest,” adding that a diplomatic solution is still possible.

He also touched on “the rise of violence against innocent Palestinians on the West Bank”, and the need to “set the conditions for a better future”, which he said featured “a two-state solution, where the world — where Israel enjoys security and peace and full recognition and normalised relations with all its neighbours, where Palestinians live in security, dignity, and self-determination in a state of their own”.

President Biden underscored the ceasefire and hostage deal put forth by Qatar and Egypt, which the UN Security Council endorsed. He said, “Now is the time for the parties to finalise its terms, bring the hostages home,” adding that this would help ease the suffering in Gaza, and end the war.

-WAM