ALROSA Signs 67 Long-Term Diamond Supply Agreements
January 24, 18
(IDEX Online) – ALROSA has signed 67 long-term agreements with 65 companies for the sale of gem-quality and industrial rough diamonds for the new 2018-2020 contract period, the Russian miner announced.
The new list of long-term clients is posted on ALROSA's sales website at http://sales.alrosa.info/rough-diamonds/long-term-contacts/our-customers-2/.
The company signed agreements for the sale of gem quality rough diamonds with 56 companies, ALROSA said. 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.
Agreements were also were signed with 48 foreign companies, including three new long-term clients: Firestar Diamond BVBA (Belgium), Blue Gems NV (Belgium), and Niru Diamonds (1987) Israel Ltd (Israel). The new list comprises 22 companies registered in Belgium, 14 companies from India, six from China, five from Israel, and one company from the UK.
ALROSA has signed agreements for the sale of industrial rough diamonds with 11 firms, with four of them being Russian.
It also signed agreements for the supply of both gem quality and industrial rough diamonds with two companies.
ALROSA is considering another 11 companies as potential candidates for signing long-term agreements for the new sales period. Among them, nine are potential long-term buyers of gem quality rough diamonds and two are buyers of industrial rough diamonds.
These companies could be added to the list of long-term clients if they accumulate a sufficiently positive history of trade cooperation, the miner said. They have already been added to the 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 percent of sales of diamonds mined by the company. The contracts guarantee volumes and assortment of monthly supplies, as well as the possibility of purchasing 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.
"ALROSA has formed a balanced client base from the largest market participants represented in different geographical areas," said Evgeny Agureev, Director of the United Selling Organization ALROSA. "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." Apart from long-term contracts, ALROSA sells rough diamonds in almost equal shares at auctions and under spot contracts.