Alrosa Sets Out New Contract Requirements

(IDEX Online News) – Russian mining company Alrosa has begun preparations for the 2015-2017 contract period and has released the conditions by which candidates for long-term rough diamond supplies will be vetted.

The requirements for the period are based on the “Regulations on the Procedure and Terms of Sales of Natural Rough Diamonds by OJSC ALROSA,” which have been approved by the Federal Antimonopoly Service of the Russian Federation. Potential clients will also be chosen based on their purchasing record from Alrosa.

The requirements include:

1.    The accumulated amount of purchases of rough diamonds and the level of trading activity with Alrosa, especially during the slowdown periods, on the world diamond market;

2.    Legal capacity (including special capacity);

3.    Reliable business reputation;

4.    Financial stability;

5.    Experience in trade in natural rough diamonds and their end products;

6.    A solvency level sufficient to perform obligations to pay for purchased rough diamonds.

The company said in a press release that the selection process will “respect the interests of domestic manufacturers of polished diamonds and diamond instruments.”

In addition to receiving a guaranteed supply of goods in pre-agreed volumes and assortments, holders of new long-term agreements will be entitled to use an “Alrosa Alliance” logo.

Negotiations for potential clients will start next month. Alrosa will begin signing the agreements from November.