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Venetia - The De Beers Flagship Mine

The flagship mine for De Beers is the Venetia, located in South Africa. De Beers began searching for diamonds in this area as early as 1969, but the mine was not in full operation until 1993. The Venetia mine is the largest in South Africa and accounts for over 40% of all diamonds mined there.

The Venetia mine is an open-pit mine but there is a possibility that the mine could expand underground as well. Mine officials expect the surface mining to be able to continue for around twenty more years.

In June, De Beers installed a new diamond crusher at the mine which cost close to $32 million dollars. All of the diamond recovery work is done nearby. First, the kimberlite is exposed and the ore is blasted and then loaded into trucks. Once at the plant, it is crushed and sorted by size. X-ray fluorescence is used to find the diamonds and workers actually do the final sorting by hand. The diamonds are then sent off to the Central Selling Organisation which classifies the diamonds into over five thousand categories.

De Beers has been especially mindful to the environmental concerns of the Venetia mine area. No toxic chemicals are used in the processing of the ore and no chemical pollutants are released. All of the pipelines used are buried and they use a dust control system. They also try to minimize the noise coming from the area. They also set up a wildlife preserve and moved many animals from the mining area to the preserve.
De Beers is easily recognized around the world as the leader in diamond mining and in the sale of diamonds. But where did the name De Beers come from? And who was responsible for making De Beers what it is today?

De Beers has been around since 1880’s. At that time, diamonds were found on a South African farm near two rivers. The farm was owned by two brothers, named the De Beers. Because of all the pressure from people wanting access to the farm, the De Beers brothers eventually sold it for 6300 pounds which is equivalent to approximately 12,000 dollars. Two mine pits were set up on the farm and one was named after the De Beers brothers. Subsequently, the whole company was named after them, but they didn’t receive any profit after they sold the farm.

The most important player in the early days of De Beers was a man named Cecil John Rhodes. Rhodes became involved in the diamond industry in 1871. Around that time he also became friends with C.D. Rudd, who would become his partner when he founded De Beers. Rhodes was instrumental in acquiring most of the surrounding diamond operations which strengthened De Beers hold on the diamond market. Even though the diamond market wasn’t doing too well, he thought that he would be able to make it successful. And he was right.

Rhodes was a rather strange man. He was obsessed about creating his own secret society. However, he died before he was able to do it. In his will, he left money so that a secret society could be created to help Britain rule the entire world. The money wasn’t exactly used for that purpose however…it was used to establish The Rhodes Scholarship which allows students from Britain ruled countries as well as the US and Germany to study at the University of Oxford, where Rhodes himself had studied.

Rhodes was interested in the military and politics. During the Boer war, he went to try to help the British army. However, he felt the best way to do this was to insist that the army do what he thought they should do. The British army hated him. (Who can blame them?)

Towards the end of his life, Rhodes had a Polish princess infatuated with him. Her name was Catherine Radziwill and she had a habit of telling people that she was engaged to Rhodes or that they were having an affair. Turns out that she had asked Rhodes to marry her and he had turned her down. Broken hearted, she did what scorned women do best..she tried to get revenge. She sued Rhodes for loan fraud. Rhodes had never committed loan fraud, of course, and her accusations were found to be false. Unfortunately (or fortunately, depending on how you look at it), Rhodes died right after the trial ended.

Despite his eccentric nature, Rhodes had almost single-handedly established what would become the largest diamond corporation in the world. He was only 49 when he died, but he died as one of the wealthiest men in the world.
When you purchase a diamond what do you look for? Price? Quality? Uniqueness? The next time you purchase a diamond you might want to give some thought to conflict diamonds.

Conflict diamonds are diamonds which get traded illegally in order to raise money to support conflicts. In Africa, some of the poorest countries often have conflicts where rebels cease control of all of the natural resources. This will often include the diamonds the country produces.

Although conflict diamonds have gotten a lot of bad press, estimates are that only 1% of all diamonds are conflict diamonds. In addition, De Beers participates in what is called the Kimberley Process. Rough diamonds that need to cross an international border are placed in specialized containers and are given a conflict free certificate which is contains a unique serial number.

In addition, De Beers has agreed to show evidence to each purchaser up the chain that the diamonds are conflict free. This occurs all the way from the beginning of the Kimberley process to the final sale to the consumer.

Because of these safeguards, customers who purchase from De Beers can focus on finding the perfect diamond jewelry for their needs without having to be concerned that they are unknowingly supporting conflicts in diamond producing countries.

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