Toronto-based high-end-jewellery retailer Harry Winston, which also owns 40% of the Diavik diamond mine, in Canada's Northwest Territories, hopes to snap up new sources of premium rough diamonds, as larger, diversified miners may opt to sell some assets, CEO Robert Gannicott said on Wednesday.

The company is looking to acquire producing or near-production assets, he said.

“In the western world, other than [Russian miner] Alrosa, diamond mining assets are now in the hands of public companies that are more focused on other commodities,” Gannicott said at the company's annual shareholders meeting.

High costs and the unique challenges of diamond mining, particularly in northern Canada, as well as difficulties in finding new deposits, could prove too much trouble for large diversified miners.

“And I think that out of all that, we expect that, over the coming year or so, there should perhaps be some interesting acquisition opportunities,” he commented.

The company also has the right of first refusal on partner Rio Tinto's 60% holding in Diavik, “if they come to the conclusion that they would like to sell that”.

In Canada, the world's biggest mining group, BHP Billiton, owns the Ekati and Koala mines, also in the Northwest Territories, and diamond giant De Beers has the Snap Lake and Victor mines.

BHP is also in the midst of a takeover bid for Rio Tinto, which, if successful, could potentially result in the sale of noncore assets like diamond mines, or the combination of the Ekati and Diavik operations, which are within 20 km of each other.

Harry Winston, formerly known as Aber Diamonds, bought high-end jewellery retailer Harry Winston in 2006.

However, the firm is not vertically-integrated - selling its share of production from Diavik, which is operated by Rio Tinto, to cutters and polishers, and sourcing other gems for its jewellery and watch business.

The company reported first-quarter net profit of $21,3-million on Wednesday, after high diamond prices offset a 30% decline in production, compared with the same period a year ago.

Output was affected by severe winter weather conditions and lower grades being mined.

The owners are expanding the Diavik mine, and will begin underground mining next year.

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