Australia-bound lab in the spotlight

Posted May 11, 2010 |

A large, international diamond grading laboratory, set to enter the Australian market, will need to meet a range of requirements before it gains Australia’s support.

Multinational diamond laboratory EGL Asia announced last month that the company would be partnering with the Australian Gemmological Laboratory (AGL), in a deal that will allow the Australian lab to issue diamond gradings on EGL’s behalf.

In a press release, EGL Asia principal Joseph Kuzi said he wanted the EGL’s first Australian lab to have a reputation for reliability.

"We intend to make our mark in this market with speedy and reliable diamond grading services that are recognised widely in the Asian markets," he said.

JAA CEO Ian Hadassin said the AGL – in its current state – didn’t have the resources to make accurate diamond gradings, although he has been assured that the necessary changes will take place.

“I spoke to the gentleman who owns AGL and he confirmed that he would be putting in a fully-serviced laboratory with all the necessary equipment, but that it would probably take at least six months to set the whole thing up,” he said.

Jeweller contacted Neeraj Sood, owner and manager of AGL, who said he could not comment on the deal because it was still being finalised.

“It’s too early to say anything, because we’re still working a few things out,” he said, adding that a formal agreement would happen in “15 to 20 days”.

Hadassin said for the AGL to receive the JAA’s support, the lab would need to make a number of commitments, including “at least two employees who are fully-qualified diamond graders” and “a full laboratory with all the necessary equipment”.

“At the moment I think AGL is just a one-man show,” Hadassin added.

Sood confirmed that he would be adding extra staff and equipment, however he could not go into specifics until the deal was finalised.

EGL is a network of gemmological laboratories with branches all over the world, including Europe, the US, Africa and Asia. It is the third-largest provider of gemmological services in the world.

Hadassin’s only concern was that the EGL did not monitor its branches closely enough, leading some EGL laboratories to develop bad reputations in the industry.

“They all trade under the same name, but they operate under very different standards and some have a very good reputation, and some have a very bad reputation.

“Worst-case scenario, the new lab will produce inaccurate diamond gradings.

“Best-case scenario, the lab will be as good as EGL South Africa or EGL America; two labs with excellent reputations,” he said.

Hadassin said he would take a “wait and see” approach.

“It’s one thing to make an announcement, it’s another thing to see it through,” he said, adding: “Six months is quite a long time, so let’s wait and see what happens.”

More reading: When diamond gradings collide

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