Surat diamantaires plan company for roughs

Direct sourcing of rough diamonds is all set to get a major boost as Surat diamantaires have come together to form a company to import rough stones directly from mining countries.

Already, a number of big and small diamond companies and traders are engaged in direct sourcing of rough from various parts of the world. But, formation of Surat Diamond Sourcing (India) Limited is the first such collective step by the industry.

“This is going to change the manner in which diamond industry operates. We will be able to source rough diamonds directly from mining companies and producing countries on a bigger scale with formation of this company,” said Ashit Mehta, MD, Blue Star Group, whose brainchild Surat Diamond Sourcing (India), is.

Industry sources said that diamond cutting & polishing units in Surat largely depend on two or three big diamond companies for rough diamonds, their basic raw material. However, the new company will open up new avenues of rough diamond supplies.

Chandrakant Sanghavi, regional chairman, The Gem & Jewellery Export Promotion Council, said, “Prices of rough diamonds can be very volatile at times, while there are periods when there is shortage of goods. Direct sourcing in large quantities will ensure regular supply of rough goods.”

Canada, Russia, South Africa, Namibia, Zimbabwe, Angola and Congo are some of the diamond producing countries which will be on the company’s radar for sourcing rough. 

De Beers, Alrosa, Rio Tinto and BHP Billiton are the major mining companies, accounting for around 70 - 75% of the world’s rough supplies. However, sources of remaining 25 -30% of the rough supplies are largely scattered. This is where the new company could be effective, said experts.