DIAMOND PAGE — Argyle producers and CSO go separate ways

Argyle Diamonds will not renew its marketing contract with the Central Selling Organization (CSO) when it expires at the end of the month.

Argyle is a joint venture consisting of RTZ-CRA, Ashton Mining and Western Australian Diamond Trust.

All of the rough diamond production from the Argyle mine in Australia will be sold directly to the world market via Argyle’s sales office in Antwerp, Belgium.

“This decision is a logical progression to generate maximum returns from the project,” said Argyle spokesman Gordon Gilchrist.

Argyle is noted for the production of unique colored diamonds, although the market for its primarily low-quality diamonds has weakened considerably over the past year, and the Argyle mine is nearing the end of its production life.

In a release, CSO operator De Beers Consolidated Mines stated that because Argyle’s production is of low quality and its sales to the CSO constitute just 6% of the CSO’s annual intake, the retail market for diamond jewelry will not be affected by Argyle’s move.