Alrosa has delayed its new supply contract for rough buyers until early next year due to uncertainty in the diamond industry, the Russian miner said Friday [October 21].
The current market environment has made it hard for diamond companies to commit to long-term plans, Alrosa explained. As a result, the company will assess clients’ allocations at the end of the first quarter of 2021, and has extended the current supply agreements until March 31.
“This will give our clients a better opportunity to forecast their sales and purchases for the next contract period based on actual market needs,” said Alrosa deputy CEO Evgeny Agureev. The postponement will enable the miner to take fourth-quarter market developments into account, it added.
The long-term supply arrangement, known as the Alrosa Alliance and accounting for 70% of its rough sales, governs customers’ purchase obligations at each monthly sale. The current contract was due to expire at the end of this year, with a new program starting in 2021 and running through to 2023.
