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ALROSA keeps diamond sale forecast at $5 bln for this year

Over the first eight months of the year, the company’s sales of uncut and cut diamonds were at about 3.15 billion U.S. dollars

MOSCOW, September 5 (Itar-Tass) —— One of the world’s biggest diamond producers, Russia’s ALROSA company, has made a decision to keep its forecast for the diamond sale at the level of five billion U.S. dollars in the current year, the company said in a report on Monday.

Over the first eight months of the year, the company’s sales of uncut and cut diamonds were at about 3.15 billion U.S. dollars.

The company’s officials are confident that ALROSA’s diamond sales will reach the projected level of five billion U.S. dollars by the end of the year, the report said.

At the same time, ALROSA pointed to a certain correction of prices for some kinds of its products, mainly owing to a sharp decline of the speculative pressure on the market, the company said in the document.

“Besides, the overall dynamics of the demand is rather stable, which allows us to keep the diamond sale forecast at the level of five billion U.S. dollars,” the report wrote.

In January-August 2011, the total amount of ALROSA’s credit portfolio reached 3.45 billion U.S. dollars.

ALROSA is Russia’s largest diamond company. ALROSA is one of the world biggest diamond companies engaged in the exploration, mining, manufacture and sale of diamonds. It is one the world’s major producers of rough diamonds.

The company is among the top ten of Russia’s most efficient enterprises.

ALROSA accounts for approximately 25 percent of the world’s rough diamond supply and 96 percent of Russia's rough diamond production.

The company’s operations are located mainly in the Republic of Sakha (Yakutia).

The Russian Federation represented by the Federal Agency for State Property Management holds a 50.9-percent stake in the company. The Republic of Sakha (Yakutia) owns 32 percent in the authorised capital of the company. Eight percent of ALROSA’s shares belong to eight Yakutian uluses (nomad camps). Other legal entities and individuals are among the company’s shareholders.

In 2010, ALROSA’s total rough diamond production amounted to 34.3 million carats worth 2.18 billion U.S. dollars in value terms, with rough diamond sales of more than 3.48 billion U.S. dollars, which is a record-breaking amount throughout the company’s history.

ALROSA’s cutting and polishing branch Brillianty ALROSA produces and sells some 140.0 million U.S dollars worth of polished diamonds on an annual basis.

At its production facilities ALROSA employs the most advanced achievements of international science and high technologies and relies on its own unique technological experience of mining in the harsh climate of the Russian Far North.

ALROSA has drawn up and implementing its Development Strategy for the Period until 2015.

The current average annual core product sales revenues (including those generated by the Company’s subsidiaries) amount to over 2.7 billion U.S. dollars.

ALROSA is developing a new distribution network based on a combination of long-term partnerships with major purchasers of rough and polished diamonds and regional diversification of sales.