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MELBOURNE - Diamonds might be a girl's best friend but the precious stones are failing to attract the interest of investors during an unprecedented boom in the resources sector.
Flinders Diamonds managing director Kevin Wills said diamond explorers were finding it hard to raise equity and get the market interested in the commodity.
"Diamond exploration in Australia in 2007 is at a low ebb. While other commodities are booming, the same cannot be said about diamonds," Wills said.
"Today's exploration is dominantly by junior companies and, as diamonds are not flavour of the month at present, it is difficult to get the market excited about most companies' activities.
"This makes it hard to raise equity funds."
Flinders is exploring for diamonds in Western Australia, South Australia and the Northern Territory.
Wills said there had been a gradual downturn in exploration in Australia over the past 10 years, despite a diamond shortage and increasing prices.
"Most major diamond explorers have either pulled out of Australia or considerably downsized their exploration activities," he said.
"One thing that does attract explorers, like bees to a honeypot, is a significant discovery.
" AAP
