DiamondBuzz
EU Extends Deadline for Polished Diamond Traceability Requirements to January 2026
Traceability rules for polished diamond imports now delayed by nearly a year, allowing more time for global cooperation and system development.
The European Union has announced a delay in the implementation of traceability requirements for polished diamond imports, pushing the original deadline from March 2025 to January 1, 2026. This extension aligns with ongoing efforts by the G7 to refine governance and ensure fairness in the global diamond trade.
Under the new timeline, rough diamonds (classified under CN codes 7102 10 00 and 7102 31 00) will still require a certificate confirming their mining origin starting March 1, 2025, as per Council Regulation (EC) No 2368/2002. This certificate must clearly indicate the country or countries where the diamonds were mined, ensuring they are not sourced from Russia, in compliance with Regulation (EU) No 833/2014. However, for polished diamonds (CN code 7102 39 00), the mandatory submission of traceability evidence—proving they are neither mined, processed, nor produced in Russia—has been deferred until January 1, 2026.
The delay reflects the complexity of establishing a comprehensive traceability system and highlights the need for ongoing collaboration with G7 nations and other international partners. EU authorities stress that continued engagement and cooperation will be crucial for the effective implementation of these measures.
Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), expressed satisfaction with the decision, stating, “The EU’s extension gives the Indian diamond industry crucial time to adjust and strengthens India’s position as a global leader in the diamond trade. We look forward to continued collaboration with the G7 and other stakeholders to ensure a transparent and sustainable diamond supply chain.”
The EU’s decision demonstrates its commitment to enhancing the G7 diamond traceability protocol, ensuring that the global diamond trade remains transparent and free from conflict-linked or sanctioned sources.
DiamondBuzz
Lesotho’s Kao Diamond Mine To Halt Operations Amid Industry Slump
The Mine’s Operator, Storm Mountain, Cited A Severe Financial Crisis Driven By A Prolonged Drop In Global Rough-diamond Prices, Rising Middle East Conflict
Lesotho’s largest diamond mine, Kao, will cease operations on June 30 and transition to care and maintenance. The mine’s operator, Storm Mountain, cited a severe financial crisis driven by a prolonged drop in global rough-diamond prices, rising Middle East conflict-related fuel costs, and stiff competition from lab-grown diamonds.
Despite a warning last October that the mine required $13 million in fresh capital to survive, the necessary investment did not materialise. According to CEO Neo Hoala, the steep market decline made continued operations unsustainable. The shutdown will impact roughly 750 workers.
The mine’s financial downturn is stark: in 2024, Storm Mountain sold 250,000 carats for $50 million—a massive drop from its $105 million revenue in 2022. Kao’s suspension reflects a broader crisis in the diamond sector, following recent insolvencies and closures at Canada’s Ekati mine and South Africa’s Ekapa and Finsch mines.
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