Vybornov: Alrosa Taking De Beers’ Place as Global Market Regulator

Alrosa is gradually becoming the new regulator on the global market, now that De Beers is losing its leading position in the rough diamond trade, claims Alrosa President Sergey Vybornov. De Beers’ downfall, he says, is a result of political decisions in Canada and some African producer countries. Vybornov’s comments were made in a speech given at the “Russian Forum 2008,” organized by Troika Dialogue, an investment bank.

As a result, Alrosa is currently looking for new major, long-term partners, including those Alrosa can share its margins with in return for long-term contracts and participation in sales revenues.

When queried by Moscow Diamond Bourse CEO Alex Popov as to whether or not Alrosa would appoint brokers, as De Beers does, Vybornov stated that this was not a part of the miner’s goals and that, if possible, this should be done by other companies.

Vybornov also noted that the company is beginning to develop four new underground mines, which will require major investments. This, along with the weakening U.S. dollar, led Vybornov to call for changing the diamond trade currency from dollars to Swiss Francs.