|Russian diamond mining giant Alrosa has signed another long-term agreement for the supply of rough diamonds, this time with Rosy Blue.
Alrosa last month signed a deal worth an estimated $60 million with upscale U.S jewelry retailer Tiffany & Co, and with Hong Kong-based jeweler Chow Tai Fook.
Rosy Blue trades in rough and polished diamonds, as well as diamond and jewelry manufacturing, and had revenues of more than $2 billion last year. It operates diamond cutting and polishing plants located in India, Thailand, Israel, Belgium and Sri Lanka, as well as three jewelry manufacturing facilities.
The deal gives Rosy Blue a stable supply of rough diamonds at a price set in advance.
The firm is a Diamond Trading Company (DTC) sightholder, and has been a long-term Alrosa customer for the past two years.
"For Alrosa it is a priority to enter into direct long-term contracts with major companies involved in the manufacturing of final products - polished diamonds and jewelry," says Alrosa Chief Executive Officer Fyodor Andreev in a statement. "Such agreements guarantee stable sales volume to us, as a producer, and guarantee stable rough diamond supply to a customer."
Alrosa is the largest producer of rough diamonds in volume terms, with output of 34.6 million carats last year and forecast output of 34.4 million carats this year.