Alrosa signs Letter of Intent with Shanghai Diamond Exchange

Russia's Alrosa has signed a Letter of Intent with the Shanghai Diamond Exchange (SDE) for joint cooperation on a range of issues, including the auction of Alrosa rough and polished diamonds at the Shanghai exchange.

The agreement was signed in Beijing on April 15 by Alrosa President Fyodor Andreev and SDE President Lin Qiang.

The agreement calls for the sides to work out the principles and conditions of the cooperation, including the organization of the auction of Alrosa diamonds at the Shanghai bourse.

For Alrosa, the Letter of Intent is the latest in a series of steps to raise its collaboration with diamond industry bodies in China.

Alrosa signed a long-term deal last November for the supply of rough diamonds to Chinese jewelry manufacturer Chow Tai Fook Jewellery Group Limited.

“China is one of the most dynamically developing countries in the world. We believe the Chinese market has a great potential for the growth of diamond jewelry consumption and of rough diamonds consumption as well," said Andreev. "Alrosa has experience in cooperation with companies from China, including in the scope of long-term agreements, and we hope this cooperation will go further."

Alrosa is the world’s biggest producer of rough diamonds in volume terms of around 34.6 million carats annually, and sales of about $4.5 billion.