HRA-SunDiamond to Receive 10% De Beers Canada Polishing Allocation

Crossworks Manufacturing, a member of the HRA-SunDiamond group of companies, is the diamond manufacturer who will receive the 10 percent allocation of the De Beers Canada Victor Mine located in Ontario.

The allocation is inline with an agreement signed with Ontario’s Ministry of Northern Development and Mines in July 2008 to expand the province’s diamond industry.

Crossworks will be receiving an annual supply of rough diamonds estimated at $25 million and will have the exclusive opportunity to market diamonds from the Victor Mine. The goods are not expected to be run of mine, but rather rough diamonds that are economically fit for manufacturing in Canada.

“Crossworks is the only company in the world who can market the diamonds from the De Beers Victor Mine and this places us as one of the world’s preeminent diamantaires,” said Crossworks Marketing Director Dylan Dix.

The announcement comes after an international bidding process in which diamond companies from around the world applied to receive the Victor Mine goods. According to a De Beers statement last July, the manufacturers will be chosen by means of an “international competition” and will be expected to set up processing operations in Ontario.

At the time, De Beers had three local Sightholders selected for the 2008-2011 contract period - Arslanian Cutting Works NWT Ltd, Laurelton Diamonds Inc and SunDiamond HRA. Laurelton, a Tiffany & Co. subsidiary, has closed its Yellowknife polishing plant in February leaving just two viable candidates for the allocation.

The HRA-SunDiamond group operates diamond polishing facilities in Vietnam, Namibia and Canada where they have facilities in both Vancouver and Yellowknife. The group is a DTC Sightholder and Rio Tinto Select Diamantaire.