What is the maximum life of Argyle?
Following the decision to expand the open pit at the Argyle mine, rough diamonds will continue to flow from the mine to the market well into the next millennium. Within this framework, an underground option will also be examined.

It is relevant to mention here that both shareholders of Argyle, Rio Tinto and Ashton Mining are committed to being long-term players in the diamond industry. Rio Tinto has a 60 per cent share in the Diavik project in Canada and is the manager of the project as well. The Diavik ore is one of richest in the world averaging US $60/cy.

Mining is likely to commence in the year 2003. There is already cross fertilisation of people with several Argyle marketing employees now working in Canada, and we expect a cross fertilisation of customers taking place as well.

Ashton Mining's interests in diamonds apart from the Argyle diamonds include the Merlin mine in Australia, the Angolan Cuango project and the Cempaka project in Indonesia.

Will you regulate the flow of diamonds to prolong its presence in the market?
Demand for the Argyle product has shown strong growth. Markets in the Far East have been trading down in diamond qualities, while demand in the United States, a traditional market for much of Argyle's production, has remained strong.

As a result, Argyle has been able to sell at its rate of production and has seen prices strengthen.

Argyle has always maintained a strong relationship with its customers and does not burden its customers with unsaleable products. The strength of Argyle's distribution network, presence in India through its Mumbai office, the Indo-Argyle Diamond Council's (IADC) promotional activities, and the recent initiatives of product promotion in India continue to deliver dividends.

You have recently focussed on the domestic Indian studded jewellery segment via Inter Gold and Sparkles for your occasion jewellery. What is the budgetary allocation for the same? Will you be using television as a medium for marketing as well?
Argyle's promotion initiatives in India are a result of the several industry requests we received to help them expand the market for jewellery studded with small diamonds. With the help of leading jewellers like Inter Gold and Sparkles, we are spreading the message to the Indian consumers that affordable diamond jewellery studded with Argyle diamonds is being offered by these retailers in a wide range of styles suitable for all occasions.

Our efforts are concentrated in helping Inter Gold and Sparkles widen their customer base and increase their marketshare.

Does this mean that the IADC has shifted from the US markets to India in a big way? Has the membership of IADC increased or decreased in recent times?
The IADC is in its sixth year of running and has been a successful venture. It has helped increase credibility and raise the profile of the Indian jewellery industry in the US, which is the world's largest jewellery market. This group of Indian jewellery manufacturers is sponsored by Argyle and helps them increase their marketshare in the American market. The group consists of about 18 to 20 jewellery manufacturers.

Argyle will continue to work in the US in helping the Indian gem and jewellery industry to make it easier for the US retailers to work with the Indian manufacturers.

Argyle's product promotion initiatives are in addition to the IADC activities.

Should India/China not emerge as major consumption centres for diamonds as expected? Will the jewellery industry contract or continue to expand? Your estimates.
India is a major market for gold. In fact, India is the world's largest cutting centre for diamonds and presents itself as a potential market for diamond studded jewellery too. Expansion of the Indian market will be in addition to the existing markets.