Gem Diamonds Signs Supply Deal with Tiffany & Co.

Gem Diamonds will supply the fancy yellow diamonds from its Ellendale mine in Western Australia to Laurelton, a diamond sourcing and polishing company that services Tiffany’s diamonds.

The agreement formalizes existing supply arrangement between the two companies and will run the economic life of the mine, Gem Diamonds said.

Kimberly Diamonds will benefit from an initial price that is less than 10 percent below the peak prices achieved before the financial crisis in 2008 began.

"The agreement should provide a sustainable platform on which the Ellendale mining operations can grow and I have every confidence that with Tiffany's global marketing and retail reach, they will extract the full potential of these remarkable yellow diamonds which in turn will allow Kimberley Diamonds to realize their full rough value,” said Clifford Elphick, chief executive officer of Gem Diamonds.