As China’s demand for diamond soar, Chinese jeweler Chow Tai Fook is looking to acquire diamond mines to ensure itself a steady supply of diamonds.
The jeweler has been approached by a number of mines around the world but is proceeding cautiously as this is a huge endeavor for the company due to associated political and economic risks, reports Bloomberg. Chow Tai Fook have diamond processing and cutting facilities, but have not ventured into mining.
“There are a lot of opportunities, but it is not very easy because it is always in a foreign country, somewhere in Africa or Botswana, or anywhere around the world,” Executive Director Adrian Cheng said about the mines.
Cheng noted that “any investment decisions would depend on the location and quality of the diamonds, and it would be difficult to pin down a price for acquisitions.”
Driven by a wedding industry that is already worth over $50 billion, the demand for diamonds is growing quickly among Chinese consumers. The jeweler has begun diversifying into diamond retailing with the acquisition of the Hearts on Fire diamond brand earlier this year. Chow Tai Fook is bringing the Hearts of Fire stores into China.
image credit: flickr/kim alaniz