Egg-size white diamond found in South Africa

The massive 507.55 carat egg-size diamond, found on September 24, could be worth about $20 million, and is expected to cover costs at the mine for two years, Finance Director David Abery said.

"Initial examinations indicate that it is of exceptional colour and clarity," Petra Diamonds said, adding it was found alongside other large white diamonds of 168 carats, 58.50 carats and 53.30 carats.

"The Cullinan mine has again given the world a spectacularly beautiful and important diamond," said Chief Executive Johan Dippenaar, noting Cullinan was the source of the world's largest gem diamond ever recovered, at 3,106 carats rough.

Petra Diamonds, which also announced its full-year results, said mining profit had fallen, but it was geared for growth as the diamond market showed signs of recovery.

Earlier this year diamond prices dropped by up to 65 percent from highs in mid-2008 but are now about 35 percent off those highs, Abery said in an interview with Reuters.

Petra shares had risen 7.1 percent to 67.5 pence by 1020 GMT, outperforming a 1.3 percent decline in the UK mining index .

"The Petra business is now geared for further growth," said Chairman Adonis Pouroulis, adding the company planned to scale down exploration and focus on production; Kazinform cites China Daily.

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