Next three-year contract period for long-term contract for buyers with ALROSA will begin in January 2015. ALROSA has announced that they have started considering applications from clients for the contract period of 2015-2017. ALROSA’s “regulations on the procedure and terms of sales of natural rough diamonds” is approved by federal anti-monopoly service of Russian Federation.
[Image Courtesy: ALROSA]
In application, candidates have to include documents for their previous trading records with ALROSA with accumulated amount of purchases of rough diamonds and level of trading activity with ALROSA, specially during slowdown period of trading, Legal capacity, Reliable business reputation, Financial stability and solvency level sufficient to pay for the purchased diamonds, Experience of trading in rough diamonds etc.
Negotiations with candidates will start in September 2014 and signing of long-term agreements will commence from November. The selected clients will get a guaranteed supply of roughs in agreed volume and assortments. Along with that they will be entitled to use logo of “ALROSA ALLIANCE” based on a separate agreement.
The ALROSA’s buyer policy is similar to De Beer’s sightholder policy which was recently updated to allow non-sightholders to bid for some of its stocks. Instead of open markets, both these industry majors use Long-term contracts as the predominant channel, which enables them to together control 62.4% of world’s diamond supplies.