DIAMOND MARKET OVERVIEW
Diamonds traders are reporting growing price resistance in polished as ever rising rough prices are creating a feeling of unease. “Sales are happening, but we are starting to see resistance in the upward movement of polished prices,” said one trader. The pressure on polished is the result of what many increasingly fear is speculative and unsustainable trading activity seen in rough.  Traders reported price pressure in better-end and medium quality pointers and commercial sizes, saying manufacturing margins were coming under increasing pressure. Although, piques were moving well. Demand for three carats and larger was also picking up, traders said. The overall PolishedPrices index edged higher during the week, opening at 118.16 points on Friday, compared to Monday’s opening at 116.09.

ROUGH MARKET
Rough premiums in the secondary market continued to strengthen with rough traders reporting brisk trading activity over the past week. Although, many are beginning warn about a possible correction. Volumes coming on to the rough market in January were not alarmingly high, as some had feared, in particular from Russia. However, some are expecting to see larger volumes of Russian goods coming on the market next month. January also did not see large quantities of Angolan production. This could increase in coming months, traders said. In the short term, however, traders are not expecting to see an easing in the frenzy buying activity on the secondary market.

CORPORATE AND EVENTS
The Supreme Court has ordered that all diamonds extracted from African Consolidated Resources claims in Chiadzwa since 2007 be surrendered to the Reserve Bank of Zimbabwe (RBZ) for safekeeping, ZimDaily reported.  Chief Justice Godfrey Chidyausiku said the diamonds would remain at the central bank until the ownership wrangle pitting ACR on one hand, and the Minerals Marketing Corporation of Zimbabwe and the Zimbabwe Mining Development Corporation on the other, is resolved, the report said. ACR’s lawyer, Mr Jonathan Samkange, said this meant Mbada Mining (Private) Limited, who recently got a permit to exploit the disputed claims, cannot sell the diamonds they are currently extracting and must surrender them to the RBZ. According to ZimDaily, the Supreme Court order means 129,400 carats of diamonds seized from ACR and its subsidiaries by police in 2007 when their permit was cancelled should be taken to the RBZ. According to the order, MMCZ should use its register in compliance with the Kimberley Process Certification Scheme in calculating the amount of diamonds extracted after the cancellation of the permit in 2007. “It is ordered that all diamonds referred to in paragraph 3 and 4 of the High Court order in judgment HC6411/07 be surrendered to the Reserve Bank of Zimbabwe for safekeeping pending the determination of the appeal noted against that judgment.”

De Beers announced it has appointed former Botswana’s former Minister of Trade and Industry as its new Resident Director and CEO of De Beers Botswana. The move comes as De Beers is entering into negotiations with the Botswana Government over the renewal of its sales contract. De Beers said Mr. Moroka will take up his new position in the coming weeks. Local media reported it was unclear what would happen to De Beers’ Botswana CEO, Sheila Khama, citing De Beers’ Stephen Lussier as saying she might be given a different role in the company.

Aim-listed diamond miner Kopane Diamond Developments has entered into a nonbinding memorandum of understanding (MoU) with an unnamed mining company to assist in developing its 75%-owned Liqhobong project, in Lesotho, miningweekly.com reported. The London-listed miner announced to shareholders on Tuesday that the joint venture with the unnamed mining company would considerably remove risk factors in bringing the project into production, the report said. “The signing of the MoU with the mining company is a significant step in the development of our Liqhobong assets. Our MoU partner proposes to fund 80% of the cost of new plant and the recommencement of production, which substantially reduces risks of funding and implementation, and avoids dilution for Kopane's shareholders,” Kopane chairperson Frank Scolaro said. The unnamed company was expected to fund and operate the restart of production at the project and to recover about 200,000 ct of diamonds over an 18 month period, said the report. The project, in which the Government of the Kingdom of Lesotho owned a 25% interest, comprised a main pipe and a satellite pipe.

Rio Tinto Diamonds has announced a reorganisation at its Antwerp-based sales and marketing management division. As part of the reorganisation, the company has appointed Clark McEwen as marketing manager, effective March 1. Clark will take over from Patrick Coppens who will take up the position of sales manager.