GJEPC meets four-member delegation from ALROSA

The Gem and Jewellery Export Promotion Council(GJEPC) headed by the council’s chairman Vasant Mehta met up with a four member delegation from ALROSA Co. Ltd., led by Vice President Yury Okoyomov in Mumbai. The meeting took place on 22nd February 2010 with the Council having plans to building relationships with the Russian mining giant.

Speaking on the occasion, Okoyomov, Vice President, ALROSA stated, "Having visited the Bharat Diamond Bourse in Mumbai, jewellery manufacturing units in the city’s SEEPZ export zone and diamond cutting and polishing works in Gujarat, ALROSA is of the opinion that India’s diamond and jewellery processing and trading infrastructure are impressive. Also, we wish to foster closer ties between the world's largest rough diamond producer and one of the world's largest diamond processing centre."

Following the meeting, ALROSA and the GJEPC jointly stated that while seven Indian firms have long-term contracts with ALROSA, some 47 Indian firms bought rough diamonds totalling $550 million – more than half the group’s total exports – from ALROSA over 2009. ALROSA shares the GJEPC's concern over speculative trading in rough and plans to increase the number of long-term clients in the future in order to ensure a stable flow of rough to the market. There is, however, no fixed period for this as yet. In addition, Russia’s commitment to maintaining stability in the world’s diamond markets is evident in that the Russian government has allocated $900 million towards the purchase and stockpiling of rough diamonds in 2010. Since global markets are showing healthy signs of recovery, ALROSA might increase its supplies to the market reducing sales to the State Fund. This way, rough diamond pricing would be more in tune with supply and not the product of speculation. While ALROSA will use some tendered sales to aid in price discovery, it firmly favours long-term contracts for the bulk of its rough supplies in order to maintain stability in the market. While ALROSA is watching the world markets very carefully and is closely monitoring parameters that might indicate a second recessionary dip, it has no plans at present to cut mining production.

Vasant Mehta, Chairman, GJEPC stated, "The Indian diamond industry is very happy with ALROSA's extremely responsible actions which have helped maintain the stability of the world's rough diamond markets. We look forward to closer cooperation with ALROSA in the future."