Diamonds

Fancy Yellow Diamond Mine Closes

The well known Ellendale Diamond Mine located in northwest Australia has officially closed. Kimberley Diamonds Ltd. has accredited the decision to decreased revenues from a decline in the grades of diamonds. Ellendale has been renowned for it’s production of fancy yellow diamonds. In December 2009, Tiffany & Co signed an agreement for the supply and sale of these unique yellow diamonds. It is not known how this will affect its supply going forward.

The yellow diamonds were first discovered there in 1976 and it is estimated that it produced 50% of the world’s supply. Fancy yellow diamonds are the second most common fancy diamond color. Often, they are marketed as “canary diamonds”. The color in fancy yellow diamonds is due to the existence of nitrogen molecules which absorbs blue light. The more nitrogen present in a fancy yellow diamond, the stronger yellow the diamond will be. Deeper yellow canary diamonds are considered more rare and come at a higher cost.