Alrosa and De Beers Sign Exploration Memorandum

Alrosa and De Beers today announced a surprising agreement to examine opportunities for joint diamond prospecting and exploration activities in Russia, Africa, and other regions of the world. According to the European Competition Commission, the two companies are barred from selling rough diamonds to each other.

Yesterday Russian President Putin and De Beers Chairman Oppenheimer met for what was described as a private meeting (see separate article).

Following is the full text of today's announcement:

An historic agreement was signed between ALROSA and De Beers in Cape Town today, to examine opportunities for carrying out joint diamond prospecting and exploration activities in Russia and, in due course, other regions of the world, including Africa. This agreement extends further a unique 50-year relationship between the two companies which has contributed significantly to the development of economic relations between Russia and South Africa, and to the growth of the diamond sectors of the two countries. 

Both ALROSA and De Beers are fully aware of the recent decision by the European Commission regarding their trading agreement, and will operate in strict compliance with all competition legislation requirements.

The companies are committed to working in a socially responsible and environmentally-friendly manner to provide vital benefits to communities in remote and developing regions of the world, whose future prosperity may be dependent on diamond mining.

Both ALROSA and De Beers express their intention to work within the guidelines of the Kimberley Process and the Diamond Best Practice Principles and to working together with diamond industry organizations, including the World Diamond Council and the World Federation of Diamond Bourses.