Interfax, Russia
Aug 7 2009

Armenia slashes cut diamond production 64% in H1

YEREVAN Aug 7

Armenia slashed cut diamond production 63.5% year-on-year in the first
half of 2009 to 5.4 billion dram ($15.5 million), Gagik Kocharian, a
senior trade official at the Armenian Economics Ministry, told
Interfax.

Kocharian said output plummeted due to reduced demand for jewelry,
however Armenia had received a large consignment of rough diamonds in
August and output is expected to rise this month.

Armenia exported $22.3 million in cut diamonds in the half, compared
with $66 million in the same period of last year.

Diamond imports fell to $22 million from $68.8 million. This included
$10 million in rough diamonds and $12 million in cut and polished
diamonds for the jewelry industry.

Armenia has not imported Russian uncut diamonds since November 2008,
after Russian mining company Alrosa liberalized its prices, Kocharian
said. Armenia has been importing most of its rough from Belgium.