MOSCOW, November 28 (RIA Novosti) – Russian diamond mining giant Alrosa has signed a long-term deal with Tiffany Co. on the supply of rough diamonds for the US jewelry giant, Alrosa said on Wednesday.
The deal was signed with Laurelton Diamonds, Tiffany’s Belgian subsidiary.
“For Alrosa it is a priority to enter into direct long-term contracts with major companies involved in the manufacture of final products – polished diamonds and jewelry. And we are pleased that the number of our regular customers is now joined by such a global brand with a long history, as Tiffany,” Alrosa CEO Fyodor Andreyev said at the signing ceremony.
Laurelton Diamonds is purchasing rough diamonds for further cutting and subsequent transfer to Tiffany. It has its own diamond-cutting facilities in Belgium, Vietnam, Mauritius, South Africa, Botswana and Namibia.
“In recent years, Laurelton was on repeated occasions among Alrosa’s buyers of rough diamonds under one-off contracts. The signing of a long-term agreement will make our partnership permanent and serve to increase the supply of diamonds to Tiffany,” Andreyev added.
The Kommersant business paper reported on Wednesday morning Alrosa was close to signing a three-year contract with Tiffany Co., which may buy rough diamonds in Russia worth at least $60 million a year.
Two weeks ago, Alrosa signed a two-year deal to supply rough diamonds to China’s Chow Tai Fook Jewellery 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.