ALROSA Announces 67 Long-Term Diamond Supply Agreements

On Tuesday (January 23), ALROSA (MCX:ALRS), one of the world’s top diamond producers, announced that it had signed 67 long-term contracts for the sale of gem quality and industrial rough diamonds.
As quoted in the press release:

ALROSA formed a list of clients for the new contract period 2018-2020. The Company signed 67 long-term agreements with 65 companies for the sale of gem quality and industrial rough diamonds.
The Company signed agreements for the sale of gem quality rough diamonds with 56 companies. Eight of them are Russian companies represented by both leaders of the Russian diamond and jewelry market, and firms who have agreements within the scope of supporting the development of the cutting and polishing industry in the Russian Federation. There are three new Russian clients compared to the previous client period: Aives LLC, Diapur LLC and Kristalldiam LLC.
Also, 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. The Company signed agreements for the sale of industrial rough diamonds with 11 firms, 4 of them are Russian. The Company signed agreements for the supply of both gem quality and industrial rough diamonds with two companies.
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. These companies can be added to the list of long-term clients should they accumulate sufficient positive history of trade cooperation. They have already been added to ALROSA ALLIANCE and acquired the right to use the relevant logo that confirms not only regular rough diamond supplies from ALROSA, but also the reputation of a client as a reliable and trusted participant of the world diamond complex.
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. 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.

Evgeny Agureev, director of the united selling organization ALROSA, commented:

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 jewelry retailers. Currently, the Company is finalizing its agreements with the new clients who are already participating in the first trading session this year.

Click here to read the full ALROSA (MCX:ALRS) press release.