We will email or write to you within 30 calendar days from receipt of your information, giving you the decision made by ALROSA’s Competitive Sales Committee. If you have been successful, this notice will contain information about how to enter your company in the list of business entities entitled to participate in competitive sales of natural rough diamonds.
You will receive an invitation for the trading session to be held in the month following the decision of our Market Conjuncture Analysis Panel. As a rule, an invitation is sent 10 calendar days before the start of a trading session.
Apart from the documents you submitted earlier, you should also submit the information and documents stipulated by Section 3 of Appendix 1 to the Regulations. Please also update the previously submitted documents if any changes have occurred.
Other things being equal, we give preference to active buyers who have purchased natural rough diamonds from ALROSA, especially during slow periods on the global diamond market. Buyers are assessed using our Methodology, a strictly formalized algorithm agreed with the FAS of Russia. The most important factors we look at in a company applying for a long-term agreement are:
The company with the highest rank through this analysis is given priority to establish a long-term agreement with ALROSA.
Declaring a company to be in compliance with our requirements and criteria opens a ‘window of opportunity’, but does not guarantee an immediate agreement. Rough diamonds are supplied under long-term (up to three years) agreements based on an exact mathematical forecast of ALROSA’s resources (taking technological and economical limitations into account). This forecast is made to determine whether it is reasonable for ALROSA to assume obligations for guaranteed monthly supplies of pre-agreed volume and assortment of rough diamonds. The most probable dates when such a resource opportunity can appear are the termination dates of existing long-term agreements. Also, a new ‘window of opportunities’ may occur following the start-up of new diamond-mining deposits.
No. You will find specific grounds for refusal in your notice. For example, we may point out that for the last three years, the average annual sales of rough and polished diamonds of your company total less than US$50 million. Once you know your grounds for refusal, you can apply again next year if this no longer applies. In any case, you can still take part in auctions and spot transactions.
Your documents are usually examined within 30 calendar days of our receiving them. If necessary, this process can be extended by up to 90 days. The , the ALROSA Market Conjuncture Analysis Panel makes a decision based on this information. The Panel meets at least once every two months . So, within 30–90 calendar days of us receiving your information, , we will send a notice of compliance/non-compliance to your company, using the e-mail or postal address you provided.
In clause 1.14. of the Questionnaire, you provide details of a contact person in your company. ALROSA will send an email confirmation to this address within five working days of our receiving your application, with information on the compliance/non-compliance of the submitted documents with our requirements.
First of all, you should apply to ALROSA in writing. You should also submit the information and documents stipulated by Sections 4 and 5 of Appendix 1 to the Regulations, and update the earlier submitted documents if any changes have been made.
Unfortunately, selection for sales events depends on both the volume of diamonds for sale, and a set procedure for selecting buyers – this is (worked out with the Russian FAS, and mandates the monthly rotation of participants. So it is not possible to guarantee participation in trading sessions, as there may be insufficient stock to accommodate all buyers.
You should also be aware that if there are not enough diamonds in stock to satisfy all buyers, preference will be given to the most active buyers in the previous trading sessions. This activity level is based on actual data about: а) refusals to participate in trading sessions for which the invitation was sent; b) the share of contracted (selected) rough diamonds from the volume offered for purchase (selection percent); c) the cost of rough diamonds purchased under spot transactions. The share of such participants in the next trading session can reach 80% of the full list of participants.
This means that active purchasing during the previous trading sessions increases your company’s chances of being invited to subsequent trading sessions.
We have a procedure for drawing up the list of participants for each industrial diamonds spot trading session, which satisfies the requirements of the Federal Antimonopoly Service (FAS) of Russia. This is as follows:
If industrial diamonds in stock are not sufficient to conclude spot transactions with all qualified buyers (as in Clause 5.4 of the Regulations), preference is given to:
The number of buyers who participated in the previous competitive sales must not exceed 80% of the full list of participants of the next competitive sales defined by the Committee.
So you probably didn’t receive an invitation because:
The total cost of the rough diamonds your company purchased under spot transactions in the previous trading sessions was lower than the total cost paid by others (calculated in US Dollars)
You will receive an invitation for the trading session to be held in the month following the decision of our Market Conjuncture Analysis Panel. Invitations are generally sent 10 calendar days prior to the beginning of a trading session.
We check your information/documents within 30 calendar days of receipt. The ALROSA Market Conjuncture Analysis Panel then makes a decision at its next meeting (the Panel meets at least every two months). So you should receive notification as to whether you can trade within 30–90 calendar days of us receiving your information. This will be sent to the email or postal address you provided.
In clause 1.14. of the Questionnaire you provide contact details. ALROSA will email confirmation of your application’s receipt, plus information on compliance/non-compliance of the submitted documents, within five working days.
Unfortunately, there is a limit to the number of buyers for each competitive sale, and the number of previous buyers must not exceed 70% of the full list of participants of the next competitive sale.. Also, winners of previous competitive sales are more likely to be included. When the number of winners of previous competitive sales exceeds 70% of the number of participants for the next event, buyers are ranked in preference according to the total value of their previous purchases (calculated in US Dollars).
In clause 1.14. of the Questionnaire you provide details of a contact person in your company (including his/her e-mail address). Within 5 workdays confirmation of your application’s receipt and information on compliance/non–compliance of the submitted documents with the requirements of the Regulations will be sent by ALROSA to this e–mail address.
Yes. You’ll find these in Section 5 of the Regulations On the Procedure and Terms of Sales of Natural Rough Diamonds by OJSC ALROSA, Chapter 5 Requirements, Criteria and Norms Applied by OJSC ALROSA to Purchasers of Rough Diamonds (Sections 1– 3).
ALROSA holds two kinds of industrial diamond sale: