ALROSA

13/01/2022

Bloomberg: Russia’s Top Diamond Miner Set Sales Record as Economy Recovered

Russia’s ALROSA, which controls more than a quarter of global diamond sales, just completed its best year ever for selling the gemstone, beating the previous high set in 2017.

“Last year was a record year in sales as we sold 45.6
million carats of diamonds,” Evgeny Agureev, the company’s chief
of sales, said in an interview. He added that a large portion of
figure was the result of selling from inventories.

While initially hit hard by the pandemic, diamonds have
proved one of the more resilient industries. Stuck-at-home
consumers have continued to buy stones, while competing luxuries
such as travel have declined due to coronavirus restrictions.
That demand has kept up as the global economy has recovered,
with strong sales in the key markets like the U.S. and China.

“The holiday season in the U.S. shows that the market is
still very good,” Agureev said. “We expect that this year the
U.S. market will grow about 50% compared to 2019, and in China
the sales also continue to show strong growth.”

The company’s stockpiles fell to 8.4 million carats last
year, near a record low, so sales this year won’t be as dramatic
as they were in 2021, he said. ALROSA said earlier that it may
produce as much as 35 million carats in 2022.

Global diamonds supplies will remain limited this year,
with worldwide output forecast at as much as 120 million carats,
compared with 150 million in 2019, according to Agureev. “It is
important for the market to find a balance between price growth
and stable demand

22/12/2021

ALROSA names a diamond after heroine Kyndykan in honour of the project supporting indigenous peoples of the Far North

The company has given a large, newly mined yellow-brown 91.86 carat diamond the name Kyndykan in honour of an Even* folklore heroine. Kyndykan was a little girl who was miraculously found alive 200 years ago by Yakut hunters near the Verkhoyansk Mountains in an ancestral settlement completely wiped out by smallpox.

The Kyndykan diamond has a yellow-brown colour and measures 25х16х22 mm. It was mined in 2021 at one of the alluvial diamond deposits at Diamonds of Анастасия Тикуноваbar, a subsidiary of ALROSA which operates across the vast Arctic territory of Yakutia. The indigenous peoples of the North traditionally inhabited this region. The diamond was found in the Olenyok district, one of the coldest regions in the northern hemisphere.

Kyndykan has become a symbol of the resilience, spiritual strength and unique values of the indigenous peoples of the Far North. The story inspired ALROSA to support a project also named Kyndykan, which aims to draw attention globally to the problem of preserving the traditions and culture of the indigenous peoples.

*The Evens are one of the indigenous peoples of Yakutiya

06/12/2021

AWDC and ALROSA Renew Cooperation Agreement

The Antwerp World Diamond Centre (AWDC), the official representative of the Antwerp diamond industry, and ALROSA, world’s largest diamond mining company by volume, renewed their cooperation agreement today. The renewed cooperation agreement will further expand and strengthen the close relationship between and leadership roles of the two organizations over the course of the next years.

The objective of this new cooperation agreement is to improve the scope and efficiency of the ties between ALROSA and AWDC, and to commit to supporting the diamond industry across a broad spectrum of topics, from the open exchange of information to the promotion of joint marketing initiatives. It also seals mutual commitment to protect the integrity and transparency of the diamond value chain by supporting the work of the World Diamond Council and the Kimberley Process and reaffirms the efforts to improve consumer confidence in diamonds as a product. Furthermore, both AWDC and ALROSA emphasize the importance of diamond tracing on the international markets and of joint contribution to the sustainability agenda within a wider context of the UN SDGs. The new cooperation agreement was signed by Sergey Ivanov, CEO of ALROSA, and Ari Epstein, CEO of AWDC.

“AWDC is committed to ensure Antwerp remains the world’s leading diamond trade center, and to defend the interests of the more than 1,600 companies it represents”, said AWDC CEO Ari Epstein. “The Russian Federation is the largest producer of rough diamonds worldwide and ALROSA the world’s leading diamond mining company. 86% of all rough diamonds mined worldwide are traded in Antwerp, making the city the most important gateway to the world for Russian diamonds. In this light, renewing our agreement sends a clear signal that we embrace our leading roles in the global diamond industry and that we will work together to turn whatever challenges arise into mutual opportunities, as we have done in the past.”

24/11/2021

ALROSA presents renewed approach to selecting ALROSA ALLIANCE members

ALROSA has presented its customers with a new concept of creating a list of partners eligible for signing long-term agreements and new rough diamonds allocation principles, which will be relevant for the 2022–2024 contract period. Based on the lessons learned during the 2019 and 2020 crises, this approach takes into account the business specifics of different types of rough diamond buyers. It will prevent volatility and dependence on outside factors in the diamond industry, reinforcing stability.

Read the details here: http://eng.alrosa.ru/alrosa-presents-renewed-approach-to-selecting-alrosa-alliance-members/

17/09/2021

Reuters: Russian diamond producer tests CO2 capture potential by its ore

State-controlled diamond producer Alrosa has teamed up with Russian scientists to test the ability of its processed ore to absorb carbon dioxide, the company said on Thursday, adding that initial results of the study have been promising.

Alrosa, the world's largest diamond producer, mines the precious stones from kimberlite ore in the remote Yakutia region in Russia's far east. It plans to adopt a climate change strategy in the first quarter of 2022.

It currently generates 90% of its power from renewable sources and keeps on replacing fuel for its transport with natural gas to reduce greenhouse gas emissions, but admits that absorbing CO2 from the atmosphere or offset measures will be needed for its goal to become carbon-neutral in the future.

If diamond-containing kimberlite rock is able to absorb emissions of the main greenhouse gas, it would help diamond companies fully join global efforts to slow down global warming.

"If future research confirms the preliminary data, it would mean that we have established significant potential for compensating greenhouse gas emissions in diamond mining through the ore's ability to absorb carbon dioxide from the atmosphere," Mikhail Dubovichev, head of innovation and technology at Alrosa, said in a statement.

The first and initial phase of Alrosa's study, which will last until 2023, showed that kimberlite ore in its tailings could potentially absorb more CO2 than the entire company generates, it said in the statement. In 2020, Alrosa's direct emissions totalled 997,000 tonnes of CO2 equivalent.

Tested samples of stored kimberlite ore, mined from its Udachnaya pipe, could absorb as much as 80 kg of CO2 per tonne of processed ore, Alrosa said.

The estimate was based on ore samples that spent between one month and ten years in its tailings storage, and comparison with samples of ore just removed from the pipe, it added.

08/09/2021

ALROSA continues to cater to clients’ demand

Acting for the benefit of its long-term clients, who struggle to fulfil current orders due to shortages of rough diamonds, ALROSA purchased more than 80% of the diamonds offered by the Russian Ministry of Finance at an auction held on September 7.

“The Gokhran auction on September 7 demonstrates the Russian State’s continued support of the diamond market’s supply and demand balance. Current demand for medium and small-size goods that were tendered is strong. Experts from the Russian State Fund for Precious Metals and Stones (Gokhran) have done an excellent job to quickly prepare and organize this auction just in time. The number of participants was the highest on record, guaranteeing the fairest possible price level and ensuring that it was on par with the market. Just like in July, ALROSA purchased rough diamonds on behalf of its trusted clients – ALROSA ALLIANCE members. By participating in the Gokhran auction, we were able to partially compensate the diamonds shortage amid strong demand from clients,” said Evgeny Agureev, Deputy CEO of ALROSA.

17/08/2021

ALROSA plans to commit 200 mln rubles ($2.7 mln) to housing construction in the Byas-Kyuel village in the Gorny District of Yakutia, Russia, which has been impacted by forest fires. In a decision expected this week, the company’s Supervisory Board will confirm that the funds will be used to rebuild housing and economic infrastructure in the region.

Sergey Ivanov, CEO of ALROSA, said: “ALROSA is working closely with the Yakut government at this difficult time for the region, providing any help it can. We hope that these funds will enable local communities to soon resume their lives as normal and provide them with support at this difficult time.”

The funding will be channeled via the Special Fund for Future Generations of the Republic of Sakha (Yakutia) and will serve in addition to ALROSA’s annual contribution to the region.

27/07/2021

ALROSA takes steps to cater its clients demand

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26 July 2021 – ALROSA remains committed to its strategy focused on maintaining a healthy balance in the diamond market, which faces supply shortages as jewellery demand keep recovering, while global diamond supply structurally decreased. A timely auction to sell diamonds from the Russian State Fund for Precious Metals and Stones (Gokhran) has supported the company’s progress against this strategy.

Global diamond inventories dropped to their historic lows as a result of the structural decline in the global diamonds production starting from 2020. The market has been plagued by acute shortages of rough diamonds needed by cutters to complete their current polished diamonds orders, which have renewed their historical highs.

In anticipation of the next trading session scheduled for Monday, 26 July, ALROSA, acting for the benefit and on the instruction of its long-term customers, purchased some 70% of the diamonds offered by the Russian Ministry of Finance at an extra auction held on 23 July. The government decided to hold this auction to contribute to the market balance auctioning diamonds from Gokhran.

“Given a physical lack of diamonds in the market and mindful of all the pandemic-related challenges and restrictions, ALROSA elected to give comfort to members of ALROSA ALLIANCE, its long-term trusted customers, by purchasing the auctioned Gokhran diamonds as they asked. Still, even with this step we will be able to satisfy only some of the demand at the upcoming session. The government takes a very responsible approach to selling diamonds from Gokhran and only offers them against real demand. These diamonds are what the market needs right now, and they will soon move on to the cutting and polishing stage, which we believe will somewhat contribute to balance the market. I would also like to mention Gokhran's role in making this auction possible. Despite the tight schedule, they managed to do everything smoothly and without delay,” said Evgeny Agureev, Deputy CEO of ALROSA

ALROSA ALLIANCE brings together the company’s long-term customers and those who are likely to become ones as they adhere to responsible business principles and have a proven track record as responsible buyers of rough diamonds. Traditionally, long-term contracts have accounted for about 70% of ALROSA’s diamond sales.

Gokhran operates under the Ministry of Finance as a fund that includes precious metals and stones, as well as items made from them. As part of its activities, Gokhran buys and sells valuables, such as rough diamonds produced in Russia.

06/07/2021

ALROSA introduces revolutionary nanomarking technology to trace diamonds

ALROSA has introduced a ground-breaking diamond-tracing technology using non-invasive laser marking. Unlike traditional laser engraving, this laser marking cannot be destroyed or polished off. It distinguishes ALROSA’s diamonds from other ones, including lab-grown, and allows them to be uniquely identified, providing detailed information about the diamonds’ origins.

Consumer surveys in the key diamond markets of the United States and China indicate that diamond tracing is an important factor when making purchases. Tracing involves registering all stages of a diamond’s life from the mine to the jewellery store to guarantee its origin.

ALROSA is introducing a new, non-invasive method for physically marking rough and polished diamonds, which has been developed with the help of scientists from the Russian Academy of Sciences, as well as ALROSA's Research Geological Enterprise (NIGP) and the Yakutniproalmaz Institute.

Unlike other tracing methods which are based on keeping a digital copy of the diamond, ALROSA physical nanomarking allows the precious stone to be identified with 100% accuracy. It also differs from other engraving technologies which mark closer to the surface of the diamond. ALROSA’s laser nanomark is imprinted inside the crystal lattice, across the atomic structure of the entire diamond, making it invisible without a scanner. Diamonds with such nanomarkings have been many times successfully certified by the GIA, the industry’s biggest certification centre.

The mark is a three-dimensional code linked to the ALROSA Provenance platform. It offers in-depth information about the diamond's origin and characteristics, as well as a unique identification number, photo, video and details about how it has been cut. Scientists believe that, as the technology evolves, it is likely to become an important way of embedding large amounts of data within the diamond, including media files, images and music.

The company is offering its partners marked diamonds and the equipment to read them. Scanning the code takes less than a minute and will eventually be optimised to ensure even greater efficiency.

Patent research has confirmed that it is the first time this technology is being used for commercial purposes to trace rough and polished diamonds. ALROSA is currently seeking patents in the world’s major diamond-trading centres, and has started application processes in the US, China, Hong Kong, Macao, Taiwan, the UK, Israel, Belgium and India.

Oleg Kovalchuk, PhD (Tech. Sc.), who supervises the project at the Yakutniproalmaz Institute, said: “A nanomark is applied using a laser pulse of a certain wavelength, intensity and duration. This causes nanoregions to form across the entire crystal, which can only be viewed with a scanner created specifically for reading the marks. As such, we have now developed standardised procedures for embedding information and marking a rough diamond with a distributed mark to identify it.”

Sergey Ivanov, CEO of ALROSA, said: “Guided by growing market demand, we are focusing our efforts on tracing and guaranteeing the origin of our diamonds. As the world’s largest vertically integrated diamond-mining company, ALROSA is in a unique position: with access to the full cycle of manufacturing, we have all the necessary information about our polished diamonds and the rough diamonds from which they were cut. The laser nanomark technology we have created allows these guarantees to be extended to the diamonds sold by our partners. By purchasing jewellery with a diamond protected by a nanomark, the buyer can be sure that it was actually made by ALROSA: the three-dimensional code embedded in the diamond is linked to its unique identifier and digital passport on the company's database, which also includes details of the socio-economic benefits associated with its production.”

21/06/2021

https://gjepc.org/solitaire/evgeny-agureev-fundamentals-are-strong-for-rough-price-growth/

ALROSA’S direct sales to Indian customers increased from $580 million in 2019 to $619 million in a challenging 2020, accounting for 21% of its total sales last year, reveals Evgeny Agureev, Deputy CEO of ALROSA. In an exclusive e-mail interview with Solitaire, Agureev notes that the removal of taxation-related trade barriers could further augment the Indo-Russian diamond business.

ALROSA’S direct sales to Indian customers increased from $580 million in 2019 to $619 million in a challenging 2020, accounting for 21% of its total sales last year, reveals Evgeny Agureev, Deputy CEO of ALROSA. In an exclusive e-mail interview with Solitaire, Agureev notes that the removal of tax...

03/06/2021

ALROSA’s Diamond Lounge debuted this year at St. Petersburg International Economic Forum. From June 2 to 5, guests admire unique diamonds from ALROSA Diamond Exclusive collection in a private atmosphere.

In addition, on June 4 ALROSA's top executives and their colleagues from banking community will meet at the business breakfast “Diamond Investments. New perspectives under current conditions” to discuss the investment potential of rare crystals.

Being the world’s largest miner of diamonds, ALROSA cuts and polishes some of its finds in-house, specializing on the most valuable, large and fancy coloured ones. The best of them form the ALROSA Diamond Exclusive programme of crystals with a significant investment potential.

Up until recent, ALROSA sold such diamonds only to professional buyers at international auctions. Today they are available to a small coterie of private clients because of partnership agreements between ALROSA and private banking arms of Russia's leading banks.

"Natural diamonds are a non-renewable natural resource that has always been in demand. The pandemic has further accelerated the ongoing decline in global rough diamond production, which is supportive for the longer-term rise in polished diamond prices amid strengthening demand. Polished diamonds serve as a hedge against inflation, foreign exchange, and even country risks. Though prices are denominated in dollars, transactions can be made in any other currency," comments Elena Sukhoveyeva, head of the ALROSA Diamond Exclusive programme. "From the portfolio diversification standpoint, high-class polished diamonds are also appealing to private investors because of their relatively weak correlation with financial assets. Diamond prices dynamics depend more on industry specifics. Today, after the correction caused by the industry-wide crisis in 2019 and the COVID crisis in 2020, polished diamond prices are still attractive for entry."

Forum’s participants can schedule an appointment to see some of the exclusive gems and consult ALROSA experts at the Diamond Lounge on every day from June 2 to June 5. Simultaneously, at the Diamonds of ALROSA boutique in the downtown of St. Petersburg, just in front of Saint Isaac's Cathedral, even more unique items are present

20/05/2021

Rapaport: GIA sees spike in synthetics fraud

GIA has seen a rise in submissions of lab-grown diamonds with counterfeit inscriptions that make the stones appear natural.
Clients using the GIA’s update or verification services are increasingly sending in goods that prove to be synthetic, the organization said Monday. These stones have falsified girdle engravings that reference a genuine natural-diamond report number, while most have almost identical measurements and weights to the natural diamonds they mimic.

In a recent case, someone submitted a 3.075-carat, H-color, VVS2-clarity, triple-Ex, lab-grown diamond to GIA Antwerp for an update. The stone carried a report for a 3.078-carat, G-color, internally flawless, triple-Ex natural diamond. The synthetic stone’s real-life dimensions were within hundredths of millimeters of the measurements in the natural-diamond report, the GIA noted.
“This unfortunate situation demonstrates why it is important, especially in any transaction where the buyer does not have a trusted relationship with the seller, to have the diamond-grading report updated before completing a purchase,” said Tom Moses, the GIA’s executive vice president and chief laboratory and research officer.

We remind that ALROSA has an in-house production: we mine diamonds and then cut them, which guarantees the natural origin of polished diamonds we sell. Each polished diamond on the digital platform https://alrosadiamond.ru/en/ has a digital passport with the details about the territory it was mined, details of cutting and polishing, and the characteristics of the polished diamond