Russian State Repository to Buy Alrosa Rough

Rough Market
08/08/2020 08:01

Alrosa, the Russian mining giant says it is close to finalizing a deal in which the Gokhran, the Russian State Repository will buy a significant volume, ranging between US$500 million and US$1 billion, worth of diamonds. “It’s a question of state-government support to our company,” Evgeny Augurev, Alrosa's Vice CEO commented, “And not only to our company, but to the whole industry.”

Throughout the pandemic, the miner has offered its long-term clients maximum flexibility to defer their contractual purchases, resulting in a steep decrease of rough sales, while the prices for the Russian rough remained at February levels, in order to mantain inventory price levels but also making them more expensive than goods that are currently sold through tenders. Starting in August, the company is lowering allocations to its clients to 50%, more if they are interested. The company also recently held tender viewings in Antwerp, to gauge demand and market prices and will determine its sales strategy for the coming months based on the results of both contract sales and tender.