MOSCOW, November 28 (RIA Novosti) – Russia’s largest diamond miner Alrosa is close to signing a three-year contract with US diamond jewelry giant Tiffany Co., which may buy rough diamonds in Russia worth at least $60 million a year, the Kommersant business paper reported on Wednesday.
The contract may be concluded this week, the paper said. On Tiffany’s behalf, the deal will be signed by its wholly-owned Belgian subsidiary Laurelton Diamonds Inc., the paper added, citing a source.
“Alrosa is interested in new clients from among world jewelry producers, which will ensure reliable purchases of rough diamonds. For its part, Alrosa is ready to take decisions on redistributing qualitative raw materials in their favor as its current long-term contracts expire,” the source said.
Alrosa declined to comment on the report.
Alrosa currently has 35 long-term contracts on the supply of rough diamonds, a large number of which will expire next year.
Two weeks ago, Alrosa signed a two-year deal to supply rough diamonds to China’s Chow Tai Fook Jewellry Group Ltd. The deal is estimated at $100 million a year.
Alrosa accounts for 25 percent of global diamond production in terms of value. In 2011 the company’s diamond output totaled 34.6 million carats, while rough diamond sales reached $4.45 billion.