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Indian diamond entrepreneurs are set to lobby their government to support Zimbabwe diamond sales.

Indian firms eager to capitalise on Zimbabwe's natural resources are set to ask their government to throw its weight behind the African nation's attempts to sell its diamonds.

Surat Rough Diamond Sourcing India Limited (SRDSIL), representatives of which were in Zimbabwe recently to pursue diamond deals, wants its government to make a stand ahead of next month's Kimberley Process meeting in Israel, the Herald reports

The meeting scheduled for Jerusalem is aimed at determining whether the country should be allowed to sell gems from the controversy-ridden Marange diamond fields in eastern Zimbabwe.

"We are confident Zimbabwe will be able to sell its diamonds appropriately. We are going to be represented by our government and we will lobby for its support," said SRDSIL chairman Ashitbhai Mehta.

However, efforts to sell Zimbabwe's diamonds on global markets are expected to meet stiff opposition from non-governmental organisations and other western agencies.

Meanwhile, the world's biggest diamond trade centre, the Bharat Diamond Bourse, opened in Mumbai recently.

The Russian firm auctioned off rough and precious diamonds at an event held to coincide with the Hong Kong Jewellery Fair.

Rough diamonds worth over $10 million (£6.31 million) were sold during an auction by Alrosa in Hong Kong.

The Russian firm, which held the event to coincide with the Hong Kong Jewellery Fair, said 89 lots of rough diamonds totalling 1,605.54 carats were made available to the 24 companies that took part in the sale.

Of those, 81 lots were sold, with $10.2 million raised by the company in total.

Among the diamonds that changed hands were three precious stones measuring over 50 carats in weight, with the largest rough diamond up for sale weighing 95.77 carats.

Polished diamonds were also on offer at the event – which ran from September 13th to 21st – with 79 examples made available and 69 selling, weighing a total of 264.66 carats.

Alrosa said in a statement the bids it received at the sale "testified to selective demand for diamond products and high clients' interest [in] rough and polished [diamonds] of fancy colours".

The company accounts for 97 per cent of Russia's overall diamond output, as well as 25 per cent of global production in terms of value. 

The head of one diamond supplier has predicted prices will rise next year if a double-dip recession does not take place.

The price of rough diamonds is likely to increase if fears regarding a double-dip recession are abated, one leading industry figure has claimed.

In an interview with Bloomberg, Johan Dippenaar, chief executive officer of supplier Petra Diamonds said there is the potential for the market to have a "very firm" end to 2010.

"If the nervousness of a double-dip recession dissipates, then we expect to see some increase in prices at the beginning of next year," he remarked.

The company today (September 20th) posted its preliminary financial results for the year to June 30th, recording a record profit after tax of $70.2 million (£44.9 million).

It revealed group revenue for the 12-month period climbed from $69.3 million to $163.7 million, while gross production of diamonds was up six per cent to 1.16 million carats.

Mr Dippenaar praised the firm's performance over the year, adding the outlook for the diamond market is positive.

Gem Diamonds has recovered a 196-carat diamond from its Letseng mine in Lesotho.

A 196-carat diamond has been discovered in a Lesotho mine that has a track record of producing excellent examples of the precious gems.

The item was recovered from the Letseng mine late last month and owner of the facility Gem Diamonds said the rough diamond is "expected to achieve a substantial price per carat" and will produce high-quality polished stones.

Letseng has produced three of the world's 20 biggest diamonds since mid 2006 – including the 603-carat Lesotho Promise that sold for $12.4 million (£8.06 million) – and chief executive officer of Gem diamonds said the latest discovery "reinforces its position as one of the great mines in the diamond industry".

He added the company – which also has operations in Botswana, Australia and Angola – is working to expand production in the area in a bid to recover more of the precious stones.

The firm, which is based in London, sold 245 rough diamonds over 10.8 carats in the six months to June 30th.