(IDEX Online) - Alrosa will allow customers to defer 100 per cent of June purchases, as it has done in April and May, in response to the ongoing COVID-19 pandemic.
The Russian state-owned miner says it's offering "unprecedentedly flexible terms for its long-term clients" in an attempt to prevent a depressed market from being flooded.
Until 2018, the 58 approved buyers on Alrosa's list could defer only 20 per cent of their allocations. By mid-2019, it was 30 per cent and in April that figure was increased to 60 per cent.
At its next contract sale, on 9 June, buyers will be able to defer all purchases.
"The history shows that responsible approach to sales is the main way to accelerate market recovery after a crisis," said Alrosa's deputy CEO Evgeny Agureev.
"Surely, under current market uncertainty maximizing short-term incomes at a cost of an overall market deterioration would be unwise."
Alrosa reported a 31 per cent slump in 2019 profits and has revised down its 2020 production forecast from 34m carats to between 28m and 31m.
It has also suspended operations at some of its least-profitable mines, and made more rough stones than ever available for online purchase.
Pic of rough diamond sorting, courtesy Alrosa