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Created on Friday, 28 October 2011 13:03

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Written by Naida Ally

Gem Diamonds has announced the sale of the world's 14th largest white diamond on record.

Sold into a profit sharing arrangement, the 550 carat, type lla, D colour rough diamond was recovered at the company's Letšeng mine on 19 August 2011. Known as the Letšeng Star, it is the fourth significant diamond to be discovered at the mine since 2006, situated in the Kingdom of Lesotho.

Under the new sales and marketing strategy, the Letšeng Star has been sold for a rough price of $16.5 million (£10.2 million). Gem Diamonds chief executive Clifford Elphick commented: "The Letšeng Star has the potential to yield an exceptional polished product, and the profit sharing arrangement for the polished margin of the Letšeng Star will ensure that its true value is realised, and that Letšeng Diamonds benefits directly from the exposure to the resulting upside. Gem Diamonds' strategy of maximising revenue generation from our rough diamonds by seeking value-added initiatives further up the diamond value chain is gaining importance for the group, and we are becoming increasingly successful in selling rough and polished diamonds with good margins being realised."