Gem Diamonds and Tiffany Subsidiary Enter into Supply Agreement

Gem Diamonds announced Tuesday that Kimberley Diamonds has entered into an agreement with Laurelton Diamonds, Inc., the diamond sourcing and polishing subsidiary of  Tiffany & Co., for the supply and sale of its fancy yellow diamond production from the Ellendale mine.

The agreement, which formalizes an existing supply arrangement dating back to July 2008, is effective from December 2009 and will run for the economic life of the Ellendale mine, affording Kimberley a contractual revenue stream for Ellendale’s fancy yellow diamond production, the company said.

The remaining commercial production from the Ellendale mine, which includes diamonds not covered in this agreement, will continue to be marketed through existing channels, including open tender and select direct sales.