Russian official says Alrosa to sell 14% of shares on Moscow exchange in the autumn

The two largest shareholders in Russian diamond mining giant Alrosa will offer a total of 14 percent of their shares for sale on the Moscow Stock Exchange later this year.

The announcement was made by Olga Dergunova, a spokesperson for the Federal Agency for the Management of Federal Property, ITAR-TASS reported.

Alrosa management last year gave the green light for the sale of 14 percent of Alrosa's shares. The federal government and the Republic of Sakha, two main shareholders, will each offer 7 percent for sale.

“No decision [on the dates] has been made so far but we think it can be the end of the third quarter or the fourth quarter,” Dergunova said.

The federal government owns 50.1 percent of Alrosa, while the Republic of Sakha owns 32 percent, and the eight districts of Yakutia with 8 percent. Yakutia in Sakha is where most of Alrosa's diamond operations are based.

Alrosa produces around 25 percent of global rough diamond production by value, and 94 percent of Russia’s overall diamond output. About 95 percent of diamond production in value terms is of gem and near-gem quality diamonds.

Alrosa's probable reserves are believed to account for more than 30 percent of the world’s diamond resources.

Alrosa's annual diamond output is about 35 million carats, while sales are close to US$4.5 billion.