October 23, 2001
Argyle Mine to Stockpile Diamond Output
As diamond demand declines, Australia's Argyle mine, the world's largest single diamond producer by volume, says it will stockpile its output for the first time since it stopped marketing diamonds through De Beers' Central Selling Organization in 1996, the Financial Times reports.
Argyle's plan is based on the assumption the market won't experience a long-term dip. It hopes to take pressure off its customers so they'll be in good shape when the market improves, FT reports.
Market analysts expect other diamond producers will follow Argyle's lead and reduce the strong downward pressure on diamond prices. Recently, Russia and Angola's Ascorp have lowered prices, and it's rumored De Beers has done the same.
- by Julia M. Duncan