Top jewelry brand drops mined diamonds
(Kitco News) - Pandora Diamonds announced Tuesday it will no longer use mined diamonds, and instead, it will use lab-created diamonds.
The company said the lab-grown diamonds would help the company meet its goals for carbon neutrality and ethically sourced materials. The lab-grown diamonds also cost less.
Diamond miners were mixed today. Lucara Diamond (TSE:LUC) was off 4.82% to 79 cents. Petra Diamonds (LON:PDL) dropped 8% to GBX1.43. Gem Diamonds (LON:GEMD) was mostly even, 0.29% up at GBX69.60.
Diamond miners faced a hard 2020 due to COVID-19 disruptions. The supply chain relies more on physical stores. Diamonds are also a luxury good, which was dropped when the world's economy tumbled. The industry started to record a recovery as COVID-19 restrictions eased.
Pandora's lab-created diamond collection is being launched as Pandora Brilliance.
"Pandora continues its quest to make incredible jewellery available for more people and today I'm proud to announce the introduction of Pandora Brilliance. It's a new collection of beautifully designed jewellery featuring lab-created diamonds. They are as much a symbol of innovation and progress as they are of enduring beauty and stand as a testament to our ongoing and ambitious sustainability agenda. Diamonds are not only forever, but for everyone," said Alexander Lacik, Pandora CEO, in a news release.
Pandora Brilliance is expected to be made with 100% renewable energy.
On its website, Natural Diamond Council counters that "...diamond mining companies are committed to safeguarding the environment." The council said that 99% of the waste produced by mining operations is rock, which can be reclaimed, and 83% of the water used in the mining process is recycled. The council said its seven members include ALROSA, De Beers, Dominion Diamond, Lucara Diamond, Murowa Diamonds, Petra Diamonds and Rio Tinto.
Pandora said it is the number one jewelry brand in the world with over 85 million pieces of jewelry sold and 26,000 employees. In 2020 the company had $3.0 billion in sales.
The company is headquartered in Copenhagen, Denmark.