Our Products

Rough and polished diamonds are the key products of ALROSA Group

Identified and prospected diamond reserves available to ALROSA mining companies are known for their high quality and significant volume. Available estimates suggest that they account for one-third of the total rough diamond reserves in the world.

Throughout 2012, ALROSA exploration and prospecting teams performed planned prospecting and evaluation works on deposits that are both currently in production and under development. The company is steadily increasing the financing of exploration, prospecting and development activities, and the consolidated budget for these operations in the reporting year amounted to RUB 5.1 billion, demonstrating a 24.6% increase against the previous year.

Rough and polished diamonds produced by our company have been in great demand from and much sought after by domestic and international jewellers and polished diamond manufacturers for several decades. The company controls the entire process of diamond mining, processing and cutting, which is why it can guarantee to its customers the authenticity of gems, purity of third origin and high quality of cut.

Rough Diamonds

Natural diamonds are gemstones that are used to manufacture polished diamonds, diamond tools, and other technical and industrial products. 

Gem- and near-gem-quality rough diamonds represent 95% of the company’s total production.

Diamonds, which ALROSA mines in Yakutia's "diamond province", occupy a prominent segment in the structure of the global diamond market, first of all due to their high quality, its main criteria being gem purity, i.e. minor inclusions of various nature, cracks and other defects.

Yakut diamonds have a large share of regular-shaped crystals that offer technological advantages in manufacturing ideally shaped polished diamonds. The diamond community is well aware that Russian diamonds are the most suitable for polishing because of their unique morphological properties, which account for lower production costs and accelerated diamond cutting and polishing.

In accordance with current Russian legislation and the Internal Regulations of the Diamond Chamber of Russia, of which ALROSA is a founding member, the term "goods" is used to refer to goods of a certain kind and quality, namely:

  • Rough sorted and evaluated diamonds;
  • Polished diamonds – faceted stones for jewellery;
  • Semi-finished products and articles of technical character made of diamond raw materials;
  • Various rough and polished precious stones – faceted stones for jewellery; or jewellery containing polished diamonds or other precious stones.  

All ALROSA-mined rough diamonds go through appropriate stages of classification and sorting, and preliminary and primary valuation at the company’s selling organizations. ALROSA uses a certified diamond sorting system that meets Russian and international standards.

Bigger diamonds exceeding 10.8 carats, so-called special stones, are evaluated by special methods based on the projected value of finished stones that can be produced from a diamond crystal. Such stones are evaluated individually, one by one, and are registered in an integrated record-keeping system that keeps track of the movement of raw diamond materials. Medium-sized and small rough diamonds are sorted with smaller sieve sets. Smaller stones or grainers that are intended for industrial use are separated at the preliminary sorting stage.

Product Quality Guarantees

The Company strictly complies with the requirements set out in the Code of Principles of the World Federation of Diamond Bourses and the Internal Regulations of the Diamond Chamber of Russia, which govern the behaviour of participants in the global diamond market, including, inter alia, the treatment or enhancement of quality parameters of rough diamonds.

Compliance with the established requirements is confirmed through quality control of produced diamonds and the issuance of relevant documents. All information regarding the established consumer properties of products is contained in supply contracts or diamond sales and purchase contracts.

After primary sorting, rough diamonds undergo presale preparation known as aggregation. This term refers to the process of blending (rolling together), like for like, rough diamonds from different mines. The diamonds are then split into boxes for sale. Each box contains assorted rough diamonds of a given category. Several boxes then form a special lot of diamonds or a fixed set of goods for sale. Diamonds are auctioned in lots. 

Once boxes and lots are formed, the diamonds become goods ready for sale.

Standard lots do not differ much from one another, and customers find themselves in equal conditions regardless of the lot they buy.

In December 2012, the Supervisory Board approved ALROSA’s Framework Marketing Policy for 2013-2015. A key objective of the marketing policy is to increase the share of rough diamond sales under long-term contracts. Today ALROSA sells its diamond products either on the spot market or at auctions or under long-term contracts that account for 62% of all sales. Long-term contracts build trust and confidence in relations with customers known as sightholders who receive guarantees of product quality and delivery dates. Key sightholders of ALROSA are Russian and foreign diamantaires of good standing who have stable businesses. The geography of ALROSA’s diamond sales is given in the ALROSA Annual Report for 2012. 

As of 2012, the company has been publishing detailed information about diamond sales at a specialized website: http://sales.alrosa.ru/, where existing and potential customers can obtain necessary documents and receive answers to questions they may have.

Polished Diamonds

To turn a rough diamond into a beautiful gem, the diamond is cut with precise facets, or tiny polished faces that add an amazing brilliance and fire to the stone.

As of 2000, ALROSA has been manufacturing polished diamonds of the highest quality at its own cutting facility that was set up on the basis of the Moscow Crystal Plant. This cutting arm of the company, known as Brilliantly ALROSA, is producing polished diamonds of different cutting shapes and sizes and is responsible for the sale of finished products on the domestic and foreign markets.

The core business of Brilliantly ALROSA is the production of Russian cut diamonds that historically have a niche of their own on the market for high-quality diamond products. The plant produces polished diamonds of a broad range of colour and quality grades, and of different shapes and sizes, i.e., the complete weight range from 0.0025-0.005 carats to 79 carats, all classic shapes and the complete colour range in accordance with technical specifications TU 117-4.2099-2002.  

In 2012 ALROSA cut rough diamonds worth USD 178.6 million, a 2.6% increase against the previous period.

Product Quality Guarantees

All ALROSA polished diamonds are subject to strict quality control under technical specifications TU 117-4.2099-2002.

The highest quality of our polished diamonds is based on:

  • Investments in technical modernization of production facilities, renewal of equipment, and introduction of advanced technologies;
  • Investments in the skill capacity building and support of advanced personnel training skills; regular allocation of rough diamonds for training purposes; 
  • Close cooperation with other Russian gem-cutting businesses.

The Diamond Certificate is a document that guarantees the authenticity of a diamond and contains its complete quality description. In accordance with Russian law and international practice, all polished diamonds of our company are certified. 

The Diamond Certificate is the passport of a diamond, as it were, and contains a complete quality description of the diamond, with regard to shape, weight, clarity grade, fluorescence, colour grade, measurements, proportions and finish grade. These quality characteristics determine the value of the stone.

This document contains a detailed drawing of a diamond and indicates all its inner and surface defects. A blank form of the Diamond Certificate is printed on a stamp paper with security features. The completed form is laminated.

ALROSA selectively certifies its polished diamonds at the International Gemmological Certification Centre.

To give our customers maximum satisfaction, our lots of diamonds for sale are put together by qualified experts with years of experience. 

Product Liability

Safety

We are unaware of any results of the studies of properties of rough or polished diamonds that may be harmful to the health and safety of end users. The company does not perform such studies or research. Therefore, ALROSA does not have any internal regulations that would obligate the company to inform customers about the composition of our products or the use and disposal thereof. 

At the same time, diamond mining and the manufacturing of finished products (i.e., prospecting, mining, recovery, transportation, processing, and diamond cutting) are associated with certain risks to the health and safety of the personnel directly involved in such operations. As a socially responsible mining company, ALROSA not only rigorously complies with legal requirements for industrial health and safety but also with its own voluntary initiatives and commitments.  

Product life-cycle stages and ALROSA health and safety risk assessment

Life-cycle stage

Assessment

Comments

Yes

No

Product concept development

 

+

 

Research & development

+

 

ALROSA has initiated many R&D studies aimed at identifying and assessing the environmental and industrial risks associated with mining with a view toward finding ways and means of their elimination or mitigation.

When designing all types of prospecting and mining operations, industrial and environmental risks are subject to mandatory assessment and analysis. 

Certification

 

+

 

Operations

+

 

Mining of minerals is recognized as a hazardous operation, which entails environmental, industrial safety and personal injury risks that are subject to mandatory assessment, analysis and minimization. 

Marketing & promotion 

 

+

 

Storage, distribution and logistics 

+

 

Under Article 29 of Federal Law No. 41-FZ of March 26, 1998 “On Precious Metals and Gemstones” (Revised on July 24, 2007), organizations engaged in the use or handling of gemstones shall provide security of said valuables. To comply with the norms of effective laws and to reduce the risks of theft of valuable products, the company shall implement a set of preventive and operative measures to consolidate facilities, where operations with precious metals and gemstones are carried out, by equipping them with special technical security, signalling and communications means, creating and supporting in-house economic security and custodial services.

Use

 

+

 

Waste disposal, recycling or recovery 

 

+

 

During the reporting period, the company did not detect any violations of legal requirements or industry codes concerning the impact of rough and polished diamond products on consumers’ health and safety, or pertaining to information and labelling about product properties.  

In 2012 the company did not undertake any special studies to assess the satisfaction of our buyers of rough and polished diamonds, but, at the same time, no buyers lodged any customer complaints about the quality of products over the reporting period, either.

Marketing Communications

The diamond market, i.e. the mining companies and their customers, is a well-defined sector, relatively small by number of participants but rather large scale otherwise. For over 50 years, De Beers has been the generator and sponsor of global generic diamond marketing campaigns, the main objective being to drive demand for diamonds and maintain consumer confidence in key markets around the world. Largely due to such campaigns, diamonds continue to symbolize eternal spiritual values and integrity and demand for diamonds, unlike the demand for other luxury goods, is not subject to drastic fluctuations. 

In recent years, the diamond industry has departed from the concept of generic product marketing to pay more attention to advertising specific diamond and jewellery brands. Simultaneously, the crisis in the global economy has led to an understanding by participants in the diamond sector of the need to resume generic product advertising and promote sector-wide advertising campaigns. 

As a leading diamond mining company and polished diamond producer, ALROSA is interested in advancing all marketing communications efforts that promote both generic product advertising and its own brands.

It is noteworthy that all the above marketing techniques employ a wide range of exclusively positive emotional concepts that associate with diamonds.

ALROSA rigorously abides by Russian and international laws concerning marketing and advertising. During the reporting period, not a single case of non-compliance with regulatory requirements concerning marketing communications including advertising, product promotion or sponsorship was detected or reported. The company did not introduce any codes regulating relations in this sphere. All effective internal regulatory acts, e.g. the ALROSA Framework Marketing Policy that was adopted in December 2012, are subject to scrutiny and review by corporate lawyers with respect to their compliance with relevant law. 

Our rough and polished diamond products were nowhere declared forbidden goods and do not constitute an object of dispute between any interested parties or an object of public discussion.  

Compliance

In 2012 ALROSA did not receive any complaints concerning violations of consumer privacy rights or losses of consumers’ personal data.

Also, during the reporting period the company was not fined or subject to other financial sanctions for non-compliance with laws and regulatory requirements concerning the use of products.