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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: PHILLIP FLOTOW who wrote (2017)	9/15/1998 11:20:00 AM
From: PHILLIP FLOTOW	Respond to of 7235

To all: Here is some background on the Russian situation. Diamonds may be their salvation yet, if they don't panic. Udachny Diamond Mine, the biggest in Russia is located just south of the Arctic circle. The struggle for control over Yakutia's diamonds had until recently been between local diamond cartel (ARS, or Almazy-Rossii-Sakha, which mines 80 percent of Russia's diamonds) and greedy ministers in Moscow. Moscow was illegally dumping millions of dollars in diamonds on the world market to pay for government costs like re-electing Boris Yeltsin in 1996. After months of uncertainty about Russia's role in the world diamond market, a formal deal was finally clinched last October with South African company DeBeers, the world's leading diamond producer. Yakutians who work in sub-zero conditions scratching diamonds from frozen mines in the coldest inhabited place on earth hope the deal will mean some money will trickle down locally. However, Moscow has always found a way in the past to siphen its share. And: The Lomonosov deposit, the only diamond deposit on the European continent, was discovered only in 1980. It has the potential to produce one-third of Russia's total diamond output. De Beers, the South African diamond corporation, has displayed considerable interest in financing the estimated $700 million price tag to extract the diamonds, provided the company receives a 50 percent stake. No deal has been struck to date. PHIL

To: PHILLIP FLOTOW who wrote (2017)	9/16/1998 2:41:00 PM
From: George J. Tromp	Read Replies (1) \| Respond to of 7235

Well that is exactly right Philip.., the Russians by extending the agreement with DeBeers., which may be extended further this fall., possibly 3 yrs., puts the stockpile in a decreasing scenario., the perpetual skirting of selling out side of the CSO by the Russians., will decrease and should put more diamond control., price stability into the market on a longer term view. I think Dr. Rhombouts addressed earlier this year., that Diamond stockpile of around 4.8Mil carats was being depleted., this news would further support the theory of diminishing Russian supply outside of CSO confines. Sincerely George J. Tromp