Indian Slowdown Dents Mountain Province Sales

RAPAPORT... Mountain Province's sales dropped at its October tender amid a weaker Indian market, the miner said last week. The company sold 366,505 carats of rough diamonds from its GahchoKu?(C) mine for $24.2 million, at an average price of $66 per carat. It noted price declines for smaller and lower-quality diamonds in the mid-single-digit percentages. "We believe the price pressure is predominantly driven bythe recent rapid weakening of the Indian rupee against the US dollar and, tosome extent, the seasonal lower demand for rough diamonds ahead of the Diwalicelebrations," the miner said. In September, Mountain Province garnered $26.9 million,achieving $65 per carat. That figure included the sale of special-size stones - thoseabove 10.8 carats - which Mountain Province won the right to sell for thatmonth. Mountain Province and De Beers, its partner in Gahcho Ku?(C), bid to selllarge stones and fancy-color diamonds from each cycle of production. "The eighth sale of the year...was a good result considering thecurrent market and time of the year, and we did well to sell all our categoriesat current best market prices," said Mountain Province CEO Stuart Brown. Consumer demand for diamond jewelry is strong in both the USand Chinese markets, boding well for the company as it heads into the holidayseasons in those countries, Brown explained. "We are encouraged to see positive diamond-jewelry retailsales, and we believe that with a positive retail selling season we will seebetter demand for rough diamonds in the near future," the executive added. Image: Gahcho Ku?(C) mine. (Mountain Province)