Starting from July 2009 the current market situation has enabled ALROSA to resume its trading operations and sizably increase market supply.
Its last month’s sales of goods to the market amounted to approximately USD 150 m, with supplies under Long Term Contracts accounting for the largest proportion of those sales.
Consistent development of long term customer-producer relationships is seen by ALROSA as a key priority in the area of marketing and sales. Also in July supplies of rough under the existing Long Term Agreement with Russia’s largest diamond manufacturer, OJSC «Production Association Kristall», were recommenced. Kristall plans to buy at least USD 100 m worth of ALROSA goods before the end of 2009.
As well ALROSA will resume rough supply to local diamond manufacturers in Sakha (Yakutia).
Steady demand for large size diamond goods that has been formed in the market over the last two months allowed ALROSA to carry on with its tradition of regular international special size diamond tenders (+10,80). The results of the first such auction in 2009 were announced in Moscow on this 31st July. The auction sales volume totaled USD 13 million. The next auction is scheduled to take place in Antwerp, Belgium. The management of the Antwerp World Diamond Centre (AWDC) supports ALROSA’s decision to bring such auction to Antwerp.
At the same time ALROSA will act responsibly where its own sales policy is concerned, and in particular, where it concerns volumes of special size goods to be offered at auctions, carefully monitoring current changes in the situation on the market for large size goods.
Fully aware of the necessity to support emerging positive market trends, the Company is in the process of discussions with the RF government on further supplies to Gokhran. Arrangements have been reached in respect of further purchases of ALROSA goods by the RF State Depositary of Precious Metals and Gems.