The diamond market has improved from the global decline, according to Petra Diamonds, with prices close to the level they were in June 2008. And the Petra’s sales income rose 88 per cent to $177.7 million in June 2010 compared to $94.4 million in June 2009 due to the extension of the recovery in rough diamond process and enlarged group production. Gross production rose six per cent to 1.165 million carats at the same time as diamond sales rose 11 per cent to 1.125 million. The compact has a momentous stake (about 75 per cent) in Tanzania’s Williamson diamond mine. The rest (about 25 per cent) is held by the Tanzanian Government.
According to the firm’s website the Williamson mine, based in Mwadui, Shinyanga region posted an inspiring revenue sales increase of 53 per cent in the year ending June 2010 to $14.4 million from $9.4 million in the same period in 2009. Diamonds shaped increased by 20 per cent to 101,071 carats from 84,486 carats in June 2009. Diamond sold improved by 22 per cent to 91,901 carats in June 2010 from 75,045 carats. The average price was $157 per carat in the year finish June 2010 up from $126 per carat in the year ending June 2009.
As prices fell in the economic year 2008/09 the Tanzania government exempted all gemstones mining companies, including Petra Diamonds from paying royalties. The country charges about five per cent royalty for gemstones. Petra said, in spite of recovery the market landscape has changed – possibly forever. Previously, the US was the world’s most important market for gems, but Asia is now attractive more important to the production.
Asia is “more than taking up the relaxed from the US,” according to Mr Johan Dippenaar, Petra’s chief executive. Evidence of China‘s new significance was seen by the new purchase of the outstanding 507 carat Cullinan Heritage diamond for $35.3 million (£23.3 million) by Chow Tai Fook, a leading Chinese jeweller. The Cullinan mine shaped a more seven stones over the year to June 30 that were sold for in overload of $1 million each.
The group thinks that price of irregular diamonds may ease lower over coming months, before increasing towards the Christmas period. Petra Diamonds is a leading supplier of rough diamonds, with a major reserve base of 262 million carats. The mine frequently produces large, high-quality stones and is a resource of rare and exceptionally valuable fancy pink diamonds.