Natural colour diamonds

Rio Tinto Diamonds is the world's leading provider of natural colour diamonds. The Argyle diamond mine in Australia is the world's largest source of natural colour diamonds, producing a variety of colours from champagne and cognac to the mine's signature stones, the famous Argyle pink diamonds.

In 2003, Rio Tinto Diamonds became a founding member of the Natural Color Diamond Association (NCDIA), an international trade organisation established to raise industry and consumer awareness, understanding and acceptance of natural colour diamonds, which include champagne, cognac and pink diamonds.

The United States, the world's largest diamond jewellery market, has demonstrated a large appetite for champagne diamonds. More and more manufacturers and retailers are using champagne diamonds as part of their standard offerings.

Market research indicates that the retail consumer finds natural colour champagne and cognac diamonds an appealing alternative to more traditional white diamonds. This is particularly true of experienced diamond consumers who wish to try something new. Champagne diamonds are associated with status, good taste, romance and the finest things in life; they are typically purchased for fashion, rather than for investment, by financially independent, style-conscious women. Rio Tinto Diamonds continues to drive the demand for champagne and cognac diamonds, particularly in the United States, focusing on establishing a number of dedicated retail programmes for the product.

In addition to the major US market, champagne diamonds are also gaining prominence in the domestic Indian market. From the platform of our representative office in Mumbai, we are undertaking considerable research with our customers in creating occasions for champagne diamond purchasing in India.

A dedicated website for champagne diamonds has also been developed.

Pink Diamonds, produced at our Argyle Mine in Western Australia, are highly coveted as the world's most sought after gems. The Argyle Diamond Mine produces more than 90 per cent of the world's pink diamonds, which are sold in a broad range of colours and sizes. The best stones, the Argyle Signature Stones, are reserved for the annual Pink Diamond Tender.

Rio Tinto Diamonds recognises the unique position its pink diamonds occupy in the market. We have developed a number of scenarios designed to leverage this unique position and provide for growth opportunities for us and our customers.

Beginning in 1984, the more exceptional polished pink diamonds from each year's production, the Argyle Signature Stones, have been sold individually at special auctions known as "tenders". Participation in these events is by invitation to the world's leading diamantaires and diamond jewellers.

The Argyle Signature Stones have an average size of 1 carat. Around 60 carats in total are sold at the Pink Diamond Tender each year. Prices achieved are typically in excess of US$100,000 per carat. To put the true rarity of these special "pink" diamonds into perspective, of every million carats of rough diamonds produced at the mine, a mere one carat is suitable for sale in one of these tenders. Since 1985, more than 750 stones have been offered for sale at the tender at a total weight of almost 600 carats.

Further information

• Argyle Diamonds website