Canadian diamond company Harry Winston has openly stated that it is interested in purchasing diamond mining operations that other corporations are looking to part with, but has intimated that it would like the conditions of such sales to be more amenable to its interests, because the field of potential buyers is a relatively small one, according to the Sydney Morning Herald.
Mining company Rio Tinto followed BHP Billiton by recently announcing a desire to sell off its diamond mining operations. By putting its Diavik project up for sale, Rio has caused the market to swell with supply, creating a buyer’s market, which is allowing Harry Winston to play coy and demand more favorable sale conditions. Harry Winston already owns shares in the Diavik mine and has first dibs on Rio’s 60% stake in the project.
Harry Winston chief executive Robert Gannicott noted the company’s healthy bargaining position, pointing out that the list of potential buyers is not long, because unlike in other industries, diamond mining projects are complex and require at least one strategic partner with significant experience in the field, the Sydney Morning Herald reported.