Two firms with differing expertise in the diamond sector have struck a “groundbreaking” collaborative agreement that they claim could lead to the creation of a new sales channel for rough diamonds globally.
Clara Diamond Solutions, which is a subsidiary of publicly-listed Lucara Diamond, and Sarine Technologies will work together on an exclusive basis in a move they believe will unlock value throughout the diamond supply chain.
Clara will serve as the exclusive worldwide customer for customised interfaces and versions of Sarine’s Galaxy inclusion mapping technology and its Advisor optimal rough planning for use with its own digital diamond sales platform.
Eira Thomas, CEO of Lucara, which is an independent producer of large exceptional quality Type IIa diamonds from its 100%-owned Karowe Mine in Botswana, said: “Clara is delighted to be partnering with Sarine in a ground-breaking collaboration agreement that will align Sarine and Clara in their efforts to create a new, leading sales channel for rough diamonds globally.
“Using [Sarine’s] technologies in combination with our proprietary analytics, Clara will sell rough diamonds on a stone by stone basis, based on a customers’ specific requirements and needs, aligning rough diamond production to polished demand and unlocking significant value throughout the diamond pipeline.”
The tie-up will provide numerous benefits to the industry as well as to Sarine, as it broadens the company’s addressable market into the upstream mining and producing segment of the diamond industry value chain.
“It is also the first opportunity to extend our pay-per-services paradigm to the actual planning of rough diamonds,” explains CEO David Block. “We plan to further cooperate with Clara on its provenance blockchain initiative, as our diamond journey is a natural fit.”
In terms of the technicalities of the partnership, Clara will use proprietary analytics together with the latest cloud and blockchain technologies to sell diamonds individually, based on polished demand, which it says will transform the sales process and drive efficiencies for diamond producers and manufacturers alike.
Selected diamonds recovered at a mine site will undergo Galaxy inclusion mapping, creating a digital fingerprint that will be uploaded to the Clara platform. Simultaneously, diamond buyers will be uploading their specific polished diamond requirements in terms of size, cut, colour and quality for their specific needs, creating an ‘order’ within the Clara system.
Clara will use Sarine’s Advisor optimal rough planning technology together with proprietary analytics to match individual, scanned rough diamonds to the buyer’s optimal polished requirements.
By eliminating the ‘batch’ style sales process, which is focused on selling diamonds in assortments and can only ever achieve ‘average’ prices, Clara claims it will be able to sell diamonds individually and achieve the best possible price for each piece.
Diamonds will be uploaded for sale as soon as they are recovered from the mine and processed through the Sarine Galaxy scanning and Advisor planning technology. Batching of rough diamonds for tender, auction and site allocation will no longer be necessary, eliminating inventory carrying costs and smoothing out revenue streams.
Clara will facilitate diamond sales on a stone by stone basis, allowing customers to purchase only those rough diamonds that meet their specific manufacturing requirements. The company says this will eradicate the need to re-trade and finance unwanted inventories.