ALROSA announced plans to bring its auctions of “special-size” rough diamonds to New York and Vladivostok, while presenting its 2017 sales program to its contract clients.
The company’s executives met last week with more than 70 long-term clients that participate in the ALROSA Alliance program. The meeting provided an overview of market trends and the company’s sales operations. It also allowed clients a preview of the 2017 trading schedule, which will be the final one of the current contract period. ALROSA is preparing a new sales contract that will begin in 2018.
The miner sells approximately 70 percent of its production to contracted ALROSA Alliance clients through 12 monthly sales. The remainder is sold mainly through its auction platform, which includes auctions of run-of-mine production and separate sales of special stones above 10.8 carats.
ALROSA said it will resume its auctions of specials in New York from next year. It will also introduce regular large-stone auctions in Vladivostok, which is located near Russia’s border with China, as part of a plan to tap the Asian market.
From 2017, all competitive bidding will be held on an online platform which the company has been testing this year, executives said. ALROSA also told clients it is planning to open a representative office in Mumbai next year.
Foreign buyers have been incentivized to buy from ALROSA with the recent abolition of an export duty on rough diamonds, the company noted. To ensure domestic Russian clients have a competitive edge, the miner has granted them a 180-day grace period to pay up to 50 percent of the value of their purchases secured with a bank guarantee.
ALROSA held its final Alliance sale of 2016 last week.