Burgundy Diamond Mines will work directly with manufacturers, traders, jewelers and luxury brands to make direct deals for the sale of rough diamonds from its Ekati mine in Canada.
The collaborations are a way for the miner to maximize the value of its diamonds, it said Tuesday. It will also allow the company and its partners to have full traceability on its goods from mine to market, it explained.
The move follows the miner’s announcement Sunday that it would turn over a portion of its fancy-yellow diamonds into a supply agreement with Canada-based cutting and polishing business Crossworks Manufacturing and diamond supplier André Messika, which will offer the finished product directly to its network of jewelry stores.
Burgundy has inked other such deals in the past. In 2021, it partnered with French jeweler Bäumer Vendôme to provide it with high-quality yellow diamonds in return for a portion of the proceeds from the sale of the finished jewelry. It also signed an agreement with Australian jeweler Solid Gold Diamonds in 2022 for its colored diamonds to be used in engagement and bridal jewelry.
Following the decision to shift its strategy, Burgundy will close its manufacturing facility in Australia, after determining it did not have long-term viability, it noted. Just two years ago, the miner expanded its cutting and polishing plant with the intention of doubling the number of colored rough it manufactured. At the time, the company also owned the Ellendale site in Australia.
“Shareholders expect us to constantly improve and review every aspect of our business performance, which this decision demonstrates,” said Burgundy CEO Kim Truter. “We remain committed to vertical integration through our sales office in Antwerp and our strategic partnerships.”
The shift is not expected to result in any material financial impact, nor will it affect production, Burgundy added. It expects to complete the closure process by the middle of this year.
Image: Rough yellow diamonds from the Ekati mine. (Burgundy Diamond Mines)
