Creamer Media Login

Shareholder in Russia's Alrosa proposes selling up to $1bn of diamonds to Gokhran - Ifax

21st January 2020

Font size: - +

MOSCOW – The government of Russia's Yakutia region, which has a stake in diamond producer Alrosa, has proposed the company sell rough diamonds worth $0.5-billion to $1-billion to the precious metals and gems repository Gokhran in 2020, Interfax news agency reported.

Diamond miners are battling falling demand, as well as competition from diamonds manufactured in laboratories. Alrosa is the world's largest producer of rough diamonds in carat terms. Together with Anglo American's De Beers unit, it produces about half of the world's rough diamonds.

The proposal was made to President Vladimir Putin and Russia's finance ministry, which is responsible for Gokhran within the government, Interfax quoted Aysen Nikolaev, the head of Yakutia region, as saying on Tuesday.

"We are raising the issue of purchasing up to $1 billion. Almost a quarter of (Alrosa's annual production). But there are different options - from $500-million to $1-billion. Any option suits us," Nikolaev, also first deputy chairman of Alrosa's board of directors, said in an interview with Interfax.

"Perhaps, it makes sense (for Alrosa) not to sell them for several years before demand recovers, but to sell them to Gokhran, as was done in the late 2000s," Nikolaev said.

Gokhran bought diamonds worth $1-billion from Alrosa during years of weak demand caused by the global financial crisis in 2008-2009.

If approved by the Finance Ministry and the government, the proposal would require a sharp increase in Gokhran's current 2020 budget for purchases as it is limited to 10.5-billion roubles.

The Yakutia region, Alrosa's management and the finance ministry agreed to review the idea in detail after Alrosa's first-half sales, Nikolaev said.

Alrosa has not replied to a Reuters request for comment.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

Click Here

MAGAZINE & ONLINE

➕

RESEARCH CHANNEL AFRICA

➕

CORPORATE PACKAGES

CLICK FOR A QUOTATION

➕