Russian mining giant Alrosa has announced the revision of its long-term clients list for the next contract period extending from 2018 to 2020. The complete revised list of clients will be posted soon on ALROSA sales website, and the Company’s long-term clients will participate in the first trading session under the new long-term Contract, from January 15 to January 19, 2018.
Alrosa’s sales policy based on long-term contracts account for nearly 70% of the sales of rough diamonds mined by the company. Such a contract system not only guarantees to its clients volumes and assortment of monthly supplies of rough, but also the possibility of purchasing additional batches of rough diamonds. This form of mutually beneficial co-operation between the Company and its clients, while assuring stable supplies of rough diamonds to its clients also protects them against the volatility in diamond prices on the world market.
Alrosa has created a balanced client-base, selected from the largest market participants representing the major geographical areas and also placing more emphasis on final manufacturers of polished diamonds and representatives of large jewelry retailers. Long-term clients of Alrosa are selected after a rigorous qualification exercise, based on a number of legal and financial criteria, apart from complying with the principles set in the Guidelines on Responsible Business Practices, which include, inter alia, transparency and disclosure, anti-corruption, adherence to the Kimberley Process principles, and observance of human rights. In addition to these the Company has introduced a new criterion that gives preference to long-term clients in the expiring contracts whose trade activity with Alrosa demonstrated demand for its rough diamonds, during periods of depressed markets.
During the new 2018/2020 contract period Alrosa has decided to increase the volume of rough supplied to the Russian domestic market, to boost the Russian cutting and polishing sector. The Company has also decided to increase the supply to long-term clients in keeping with their volume of sales and the level of financial performance.