Demand for rough diamonds, particularly from China and India, remains strong and should keep prices at least at current
levels, executives from Rockwell Diamonds said last week.

The US diamond market has also shown some improvement in prices and sales, CEO John Bristow commented.

Rockwell produces high-value diamonds from three alluvial mines in South Africa – Holpan, Klipdam and Saxendrift – and has a fourth operation, Wouter-
span, on care and maintenance.

After a “precipitous” drop in late 2008 and a continued weakness in the early parts of 2009, prices and demand have now recovered strongly, with rough diamond prices just about back at their 2008 highs, said marketing and sales manager Jeffrey Brenner.

“The rough market is very strong at the moment,” he said on a conference call.

Going forward, the market should remain strong and could go through a period of stabilisation.

“I expect no change in the prices; they definitely will not go down,” Brenner commented.

Rockwell also does not expect the concerns over sovereign debt problems in Europe to negatively affect its diamond sales or prices.

“I don’t see it as a problem in the near term,” Brenner said, pointing out that most of the demand growth at the moment comes from India and China.

The company has a diamond sale running at the moment, and has seen strong demand for its stones.

“The buyers are still there in great numbers and very keen to buy the product,” Brenner said.

Rockwell is aiming to increase production and ‘smooth’ revenue 
and cash flow, which can be volatile from quarter to quarter.

To help boost output, the company plans to modernise and 
recommission the Wouterspan mine, which has a history of producing top-quality gemstones, Bristow said.

The firm also announced earlier 
this year that it planned to buy a 74% interest in the Blue Gum diamond operation, in South Africa’s Ventersdorp region, from Etruscan Diamonds.

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