Antwerp Sights: BHP De-Packages Goods

BHP Billiton at its sight this week in Antwerp has sold its Ekati goods mostly unsorted. It is not clear why, however it seems to have been a result of a technical problem that could turn into the standard operating procedure for the coming months.

Buyers received either completely unsorted goods or partially sorted rough based on size: -7 and malices each run of mine and 3 carats and up sorted as before. Some also noted that the goods were mostly round with very few crystal shaped goods, possibly indicating that it mostly came from the Misery pipe.

Because of the ‘un-sortness’ it was difficult for dealers to immediately estimate the value of the goods received and any possible change in prices or what margin they could get on it. As aside note it should be mentioned that De Beers did the same thing a few years back, later returning to the assortment system.

Goods from Rio Tinto’s Argyle sight, where volumes are back to normal, are difficult to move because of the Diwali holiday in India. Brown goods in general, such as the kinds that are mined at Argyle, have been hard to move for some time.

Rio Tinto’s Diavik diamonds seemed very expansive, while Aber’s prices for the goods from the mine remained mostly unchanged. A small change in the assortment of some goods by Aber, a correction as one dubbed it, was made in the very cheap goods and in the very expensive big goods (3+ carats and 5 – 10 carats), bringing their prices to better reflect their market value.