Alrosa signs 67 long-term diamond supply contracts

By Creamer Media Reporter      / January 23, 2018 / www.miningweekly.com / Article Link

JOHANNESBURG (miningweekly.com) – Diamond major Alrosa has signed 67 long-term agreements for the sale of gem quality and industrial rough diamonds, 12 of which are agreements with Russian companies.

Of the eight Russian companies that are buying rough diamonds from Alrosa, three are new clients – Aives, Diapur and Kristalldiam.

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The new list comprises 22 companies registered in Belgium, 14 companies from India, six from China, five from Israel and one company from the UK.

Alrosa has also signed agreements for the sale of industrial rough diamonds with 11 firms, four of which are Russian.

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Two companies signed agreements for the supply of both gem quality and industrial rough diamonds.

Alrosa reported on Tuesday that it was considering another 11 companies as potential candidates for long-term agreements. Among them, nine are potential long-term buyers of gem-quality rough diamonds and two are buyers of industrial rough diamonds.

Long-term contracts form the basis of Alrosa’s sales policy accounting for up to 70% of sales of diamonds mined by the company. The contracts guarantee volumes and assortment of monthly supplies, as well as the possibility to purchase additional batches of rough diamonds.

"Alrosa has formed a balanced client base from the largest market participants represented in different geographical areas. In the new contract period, the company increased the sales focus on diamond manufacturers and jewellery retailers,” said director of the United Selling Organisation, Evgeny Agureev.

Besides long-term contracts, Alrosa sells rough diamonds in almost equal shares at auctions and under spot contracts.

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