Rough Diamonds

The majority of Argyle's diamonds are sold as 'rough' or uncut stones. Between 1983 and 1996, most of the Argyle rough diamonds were sold via two sales agreements with De Beers. The first agreement (1983 - 1991) helped provide industry and investor confidence in the viability of the mine. It also gave the company time to gain expertise in the sorting and valuation of its diamonds, as well as in marketing them. Diamond industry analysis conducted during this period provided the foundation for marketing systems that were eventually developed. These were used to underpin Argyle's establishment of a competitive advantage in the market place.

Critical to the company's marketing strategy, from as early as 1983, were sales direct to the market. This provided verification for the rough diamond prices received within the contractual agreements. The company opened a direct sales office in Antwerp in 1985, and a representative office in Mumbai, India in 1989 for customer liaison. The takeover of the Western Australian Diamond Trust in 1989 provided Argyle with access to the full range of its production and the ability to market gem product through the Antwerp office. More >