At its just-concluded annual client meeting, the management of Alrosa reiterated its commitment to forging long-term relationships with its customers and confirmed that the new list of companies selected for the three-year contract period beginning 2015 will be finalised by the end of this year.  The meeting also discussed the mining company’s preliminary results for 2014 and views on the current situation in the diamond market.

The consensus among the clients at the meeting was that the practice of developing long-term supply relationships that was started by Alrosa in 2009 has proved to be efficient as it enables long-term business planning for both parties as well as providing a stable and guaranteed supply of rough and some hedge against the volatility in prices.

Alrosa also confirmed that in the coming three years, 70% of its rough would be distributed in this manner across some of the largest players in the diamond industry especially diamond manufacturers and jewellery retail companies. The new contracts will cover a three year period beginning 2015 and the final list of selected clients will be announced before the end of 2014, the company confirmed.

There was also a general consensus among the participants that the end consumer is increasingly interested in knowing the origins of the diamond being purchased. This is a result of insufficient transparency in the industry as well as the development of advanced technologies for lab-produced gem-quality diamonds.

Agreeing that joint efforts were needed to enhance consumer perception about the industry, the clients praised Alrosa’s efforts to develop regular exchange of information with industry organisations, and implement responsible business practices in its long-term supply contract systems.