On the current worldwide shortage of roughs
Demand for polished diamonds, particularly in the USA, the world's largest consuming centre, has been quite strong. Argyle's production has come down to about 29.70 million carats in 1999, from nearly 40.8 million carats in 1998. The supply from Russia to the open market is also down. As a result smaller stones in particular are commanding considerable premia, indicating their shortage.

On Argyle's stock at the time of withdrawal from CSO's marketing system
In view of purchase quotas imposed by CSO, Argyle had piled up stocks at the rate of about 10-15 per cent of its production during the earlier few years. After separation from the single channel system, Argyle started selling slowly from these stocks in such a way as not to disturb the market. Most of these stocks have been disposed of by now.

On the extent of price rise
Because of strong demand and reduced supply, prices for certain categories of roughs have been on an upward curve. Compared with 1998 and 1999, the prices for Argyle products might have risen by over 20 per cent. Argyle has been able to clear most of its stockpile at much better prices.

On the likely supply position and price trends
Argyle's production which declined to about 29.70 million carats in 1999, and is expected to drop further to about 25-27 million carats in the current year. The output is also expected to remain around such lower levels even in the next year. Moreover, unsold stocks with De Beers, Russia and Argyle are depleted. On the other hand, the demand for polished stones remain strong. Until the fall in Argyle's production can be compensated by some other sources, or the demand for polished stones eases there can be shortage of supply. There is no question at present, of Argyle's production again reaching 40 million carats. Under this situation prices can not be expected to move down.

On Australia's second hard-rock mine
Ashton has started producing since early 1999 rough diamonds from its wholly-owned Merlin project which represents Australia's second hard-rock mine. It is expected to produce about 1,50,000 carats in 2000. Its output can be doubled or tripled in the next three to five years. That apart, some explorations are going on around Argyle.

On Argyle's mining plans
At present, Argyle is engaged in widening its open pit so as to expose more diamond bearing resource for mining. This will enable Argyle to extend its life to 2006 or 2007. Ideally, therefore the decision on underground mining may be taken time in 2001 or 2002.

On Ellundale
It is a small project and there are no proposals at present to exploit it.

On the Angolan mining project
The Cuango river-bed project in Angola in which Ashton has a 33 per cent stake along with two others, each with a similar stake, is quite promising. The mine produced about 1,00,000 lakh carats worth about $30 million in just two concluding months of 1999. A sharp increase in production to about 3,00,000 to 4,00,000 carats can be expected in 2000. These are very good quality stones. Currently these roughs are being sold through CSO in terms of some earlier arrangements. However, an Angolan Selling Corporation is also proposed to be set up. It remains to be seen what activities it handles.

On Cempaka Alluvial diamond project
Ashton has just started production from this alluvial project located in Indonesia. A dredge is in operation there, and at present the current level of production is about 30,000-50,000 carat per year. But this can be easily doubled by adding one more dredge. These diamonds are of very good quality and fetch about $200 per carat. Currently, they are being sold through IDH Diamonds, Antwerp.

On exploration in Russia
The joint venture which is exploring for diamonds in Karelia (Russia) is making good progress. That apart Ashton is engaged in explorations in some other countries as well.

Ashton's other exploration projects
Ashton is determined to be a long-term player in diamond business. As such it has taken up exploration programmes in several other countries around the world. These programmes would be in different parts of Canada, Mauritania, South Africa, Northern Europe and in certain parts of Australia and Angola.

On the response to browns and pinks
Browns rank among very cheap diamonds, on the other hand, pinks rank among the costliest. Every manufacturer now wants brown, because there is a strong demand for such affordable stones.

Pinks are highly-fancied by consumers who are prepared to pay fancy prices for them far above those for D flawless. This is because such beautiful pink diamonds are very rare. Annual production of such pinks may be just around 200 carats or so. Some of these are polished in Perth and others are toll-processed in Sri Lanka. The next tender for such pink diamonds will be organised in October 2000. The response to the earlier such tender was extremely good.

On real issues before Ashton
According to Ashton the key issues at present are further extension of Argyle's mine-life; further development of Merline, Cempaka and Angola projects as profit and cashflown contributors; management of political risk in certain regions and the ongoing need to develop further our marketing skills.