After Argyle Diamond severed its decades old tie up with De Beers in mid-1996, it has successfully managed to sell its roughs from its marketing office in Antwerpen, Belgium, the centre for global diamond market, after getting as much as 70 per cent of its diamond production processed in India. According to Argyle Diamonds managing director Gordon Gilchrist: "We will invest over A$60 million in mining equipment which will increase the life of our AK1 mines in Kimberley (Australia) by 10 years."

However, according to the general manager, Brendan Hammond, the total investment will be over A$200 million. "This will be spread over next couple of years and will be funded from internal accruals, asmarket forces will not permit us to increase the cost of roughs supplied to the processors in India.

Gilchrist is currently in India with his 10-member team (including representative of Ashton, Argyle's partners in the diamond business) to "celebrate Argyle's decade-old presence in the Indian market" and to inform their Indian clients of their future activities.

Argyle Diamonds' India representative office, headed by Nirupa Bhatt, has "successfully attained" the expected aim of bringing together the diamond suppliers and processors from completely different cultural background. This has resulted in over 70 per cent of Argyle's diamonds processed in India.However, diamond prices have been under pressure since the past two years, first by newly emerged competition from three main suppliers-De Beers, Argyle and the crisis- ridden Russia, followed by economic troubles that began in the south east Asian markets 18 months ago. The crisis has now spread over three fourths of the world, forcing the rough diamondsuppliers to refrain from increasing prices, if not outright undercut each other.Speaking to The Financial Express, Gilchrist said: "Each day Israel is increasingly losing its diamond processing marketshare to India. India can easily takeover Israel if processing infrastructure is improved from its traditional and cottage industry nature."

Said Gilchrist: It's time Indian diamond processors changed their focus to cater to the global customer demands rather than continue operations only to keep their factories running. This way they might be able to run their factories, but lose business."

Earlier, addressing members of the Indian diamond industry, including the Gem and Jewellery Export Promotion Council (GJEPC), Gilchrist said: "Argyle has been independently marketing its product for two-and-a-half years now and given its strong and profitable growth there are no intentions on going back to any prior marketing arrangements. Argyle's goal in a strategic sense is to maximise the value of our business forthe benefit of our shareholders, customers and employees."

According to Gilchrist, during 1999, you will see the continuation of our successful Indo Argyle Diamond Programme, sponsorship of the India International Jewellery (IIJS) Shows in the international markets and continued technical support in India.

Lastly, today (Thursday) the Argyle team will meet top GJEPC officials to workout details of sponsoring the IIJS and also the quantity of rough diamonds that could be lifted from Argyle's mines.