CFA Society Singapore
SINGAPORE (Aug 20): Sarine Technologies has entered into an agreement with Clara Diamond Solutions, a subsidiary of Vancouver-based diamond mining producer Lucara Diamond.
Under the agreement, Clara will sell diamonds directly to jewellery manufacturers via a digital platform backed by secure blockchain technology developed by it. The platform will enable recording the mine origin of the rough diamond before it is sold.
Sarine's Galaxy inclusion mapping technology and its Advisor optimal rough planning will then be applied to the rough stone to generate possible cutting and polishing solutions as per polished diamond manufacturers' retail customers' pre-defined orders.
This optimisation of the sorting process will match available rough material with manufacturers' and retailers' current market demand, allowing them to search for the exact stones they need at the price they want.
Sarine will be remunerated on a per-stone per-carat basis both for its Galaxy services and Advisor new cloud-technology enhanced planning services being used for the first time on the Clara platform. This will create a new source of recurring revenue from the upstream of the diamond value chain.
As a start, Lucara will sell some of its own diamonds on Clara and may expand to allow rough stones from other producers to be sold on the platform.
The introduction of blockchain into this process helps to keep information confidential and secure and improve transparency of the provenance chain, which is especially key for millennial consumers to reassure them about where their diamonds came from.
David Block, CEO of Sarine, says, “It is also the first opportunity to extend our pay-per-services paradigm to the actual planning of rough diamonds. We believe that we will further cooperate with Lucara on their provenance blockchain initiative, as our Diamond Journey is a natural fit.”
Shares in Sarine closed at 78 cents on Monday.