The main reason for the jump in sales was better price realisations. On the other hand, one of the factors that affected production was the on-going programme of pit-expansion coupled with a brief shutdown for maintenance purposes.

Argyle production of rough diamonds, as can be seen from the accompanying table, amounted to 7.9 million carats during the period, compared with 12.5 million carats during the same period of the earlier year.

This takes its total production for the first nine months of 1999 to 22.3 million carats. Argyle has now estimated that its total production in 1999 will be around 30 million carats compared with over 40 million carats in the earlier year.

Ore processing at AK1 during the third quarter was reduced compared with that in the corresponding period of the last year, reflecting an extended10-day maintenance shutdown during the quarter and the lower target for 1999. The lower throughput in the third quarter will, however, be recoupled through slightly higher processing rates in 2000.

Meanwhile, AK1 pit development is continuing on schedule with waste tripping from the West Wall contributing significantly to the total waste mined in the first nine months, which is more than double that in the previous corresponding period.

Alluvial ore processed for the quarter equalled the corresponding period of last year, but lower alluvial diamond production for the year to date reflects throughout restrictions in the second quarter caused by treating ore with higher clay content.

Lower alluvial production for the third quarter was due to the processing of lower grade material, but higher diamond production for the first three quarters reflects an overall higher feed-grade.

With the expansion of the AK 1 pit, Argyle diamond mine-life will be extended to 2006. Before that time a decision will be takenwhether to expand the pit further or to go underground. It might be, therefore, unreasonable to conclude that there will no diamonds from Argyle after 2006.The sharp rise in sales during the third quarter despite fall in production is attributed to the continuance of optimistic mood and strengthening of prices. The positive mood, according to Argyle, continues in both the rough and polished markets.

For the remaining part of the year, Argyle will be looking to consolidation of the current improved price levels. Argyle type goods continue to experience strong prices with the De Beers' Central Selling Organisation (CSO) announcing recently an increase in the prices for lower quality goods. This further reflects the recent favourable market movements for such stones.

Ashton Mining has estimated that CSO sales this year might reach around US$5 billion, a notable recovery from US$3.4 billion in 1998.

The 15th annual Argyle pink diamond tender received excellent results during September 1999 with 46 stonessold to 13 different customers from all over the world, including Japan.

Among many notable stones this year was a 0.73 carat fancy-red emerald-cut diamond.The 1999 tender also set new records for size with five stones larger than 2 carats, the largest stone being a 2.76 carat oval shaped pink diamond.