Alrosa Reviewing Options Following EC Decision
February 23, 06
Following yesterday's European Commission decision regarding trade between De Beers and Alrosa, the Russian miner is reviewing its options. The decision calls for De Beers to phase out its purchases until the end of 2008 and to cease buying rough diamonds, directly or indirectly, from Alrosa from 2009 onwards.
The new commitments set by the Commission differ from the joint commitments previously offered by Alrosa and De Beers and market tested by the Commission in June 2005. The June 2005 commitments would have allowed Alrosa to continue to supply up to $275 million per year to De Beers after a gradual phase down of supplies between the parties.
Alrosa added that it is currently reviewing the full text of the decision. De Beers has not issued a public statement yet.