DiamondBuzz
GIA stops using 4Cs to grade LGDs
In a landmark decision that will reverberate through the global diamond industry, the Gemological Institute of America (GIA)—the world’s foremost authority in gemology—has announced it will no longer use its internationally recognized 4Cs grading system for laboratory-grown diamonds. Instead, beginning later this year, lab-grown diamonds submitted to GIA will receive simplified descriptors—categorized broadly as either “premium” or “standard”—or no grade at all if the quality is subpar.
While GIA’s move to redefine lab grown diamond grading might sound like a simple nomenclature change, it’s much more than that. This move marks a definitive moment in the ongoing separation of natural diamonds from lab-grown diamonds. It confirms what many in the industry have long known: lab-grown diamonds are not the same as natural diamonds and should not be treated as such.
GIA created the 4Cs—cut, color, clarity, and carat weight—as a rigorous system to help consumers understand the unique and complex qualities of natural diamonds. No two natural diamonds are exactly alike. They are rare geological miracles forged deep within the Earth over billions of years, each carrying a singular fingerprint from Mother Nature. A grading report for a natural diamond is essential because these stones exist along an immense spectrum of characteristics.
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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