ALROSA Finalizes 67 Long-Term Client Agreements

Rough Market
23/01/2018 17:05

ALROSA formed a list of clients for the new contract period 2018-2020, signing 67 long-term agreements with 65 companies for the sale of gem quality and industrial rough diamonds. The new list of long-term clients is posted on ALROSA’s sales website here. The Russian miner signed agreements for the sale of gem-quality rough diamonds with 56 companies. Eight of them are Russian companies, including leaders in the Russian diamond and jewelry market, and firms that support the development of the cutting and polishing industry in the Russian Federation. Agreements were signed with 48 foreign companies, including 3 new long-term clients – Firestar Diamond BVBA (Belgium), Blue Gems NV (Belgium), Niru Diamonds (1987) Israel Ltd (Israel). The new list comprises 22 companies registered in Belgium, 14 companies from India, 6 from China, 5 from Israel and 1 company from the UK. Agreements for the sale of industrial rough diamonds with 11 firms.

ALROSA is also considering another 11 companies as potential candidates for signing long-term agreements within this period. Among them, 9 are potential long-term buyers of gem quality rough diamonds and two – 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, while the remaining 30% is split between auctions and spot contracts. The contracts guarantee volumes and assortment of monthly supplies, as well as the possibility to purchase additional batches of rough diamonds. This form of cooperation provides the Company and its clients with stable supplies of rough diamonds and protects against the volatility in diamond prices on the world market.

“ALROSA has formed a balanced client base from the largest market participants represented in different geographical areas", said Evgeny Agureev, Director of the United Selling Organization ALROSA. "In the new contract period, the Company increased the sales focus on diamond manufacturers and jewelry retailers. Currently, the Company is finalizing its agreements with the new clients who are already participating in the first trading session this year.”