Alrosa

History and Structure

• Alrosa's history dates back to 1954 with the discovery of the first primary deposit of diamonds in the Soviet Union.
• In 1955, several more primary diamond sources were found, including the Mir and Udachnaya pipes.
• Mining and production operations began in 1957, and the first commercial-grade diamonds were recovered the same year.
• The diamond mining industry developed on the basis of the Mir open-pit mine and adjacent alluvial deposits during the Soviet period.
• In 2009, Alrosa started independently distributing its rough diamond production on the world market.
• As of 2017, Alrosa was the largest public diamond mining company in the sector.
• The company has a public float of 34% and is 33% owned by the Russian Federation.
• In 2017, Alrosa's market capitalization was RUB 553 billion (US$9.6 billion).
• The European Union sanctions froze Alrosa's assets in Europe and imposed a travel ban on its CEO.
• Alrosa is responsible for approximately 90% of Russia's diamond production.
• The Russian Federation owns 33% of Alrosa.
• Alrosa has a public float of 34%.
• In 2017, the company's market capitalization was RUB 553 billion (US$9.6 billion).
• The largest buyers of Alrosa's shares during its IPO were U.S. investors, followed by European investors.
• Investment funds Oppenheimer Funds Inc. and Lazard Ltd. purchased over 2% of the stake during the IPO.

Sanctions and International Relations

• In 2022, economic sanctions were implemented against Alrosa in response to Russia's invasion of Ukraine.
• The US announced sanctions against Alrosa on February 24, 2022.
• The European Union imposed sanctions on Alrosa and its CEO on January 3, 2024, freezing its assets in Europe and prohibiting funds from EU citizens and companies.
• Despite the sanctions, diamond-cutting companies in Antwerp, Belgium, continue to import from Alrosa, albeit at a lower volume.
• The EU also prohibited the import, purchase, or transfer of Russian non-industrial natural and synthetic diamonds and diamond jewelry.
• The United States imposed sanctions on Russia, including ALROSA, in February 2022.
• Belgium's trade in Russian diamonds continued despite moral pressure.
• The European Union targeted ALROSA as part of sanctions against Russia.
• Yakutia, a region in Russia, has no plans to privatize its stake in ALROSA.
• Sergey Ivanov was elected as the President of ALROSA.

Social and Environmental Responsibility

• In 2017, Alrosa implemented over 500 social and charitable initiatives, with over 70% implemented in Yakutia, its key region.
• The company has invested over 4.5 billion rubles in the Target Fund for Future Generations of the Republic of Sakha (Yakutia) since 2011.
• Alrosa was ranked among the top three in the environmental responsibility rating of Russian mining and smelting companies in 2017.
• The company signed a memorandum of cooperation with the Gem & Jewelry Export Promotion Council in 2017.
• According to a PwC study in 2017, Alrosa is a leader among diamond mining companies in terms of investments in social programs, spending on average 2.8% of its revenue.
• ALROSA had over 500 social and charitable initiatives in 2017.
• The company leads in social investments and sustainability ratings.
• ALROSA's corporate transparency has been recognized by Transparency International.
• The company is committed to indigenous rights in the Arctic.

Operations

• Alrosa has production facilities in Western Yakutia and the Arkhangelsk region.
• The company is developing 27 fields, consisting of 11 primary and 16 alluvial deposits.
• Primary deposits are developed through open-pit, alluvial operations, and underground mining.
• Alrosa has four mining and processing divisions in the Republic of Sakha (Yakutia): Mirny, Aykhal, Udachny, and Nyurba.
• Other deposits are developed through subsidiaries: OJSC Alrosa-Nyurba, JSC Diamonds Anabara, and JSC Severalmaz.
• OJSC Almazy Anabara is a subsidiary of Alrosa, involved in alluvial diamond mining.
• Sociedade Mineira de Catoca (Catoca Ltd.) is a mining company in Angola, with 32.8% shares owned by Alrosa.
• Public Joint Stock Company Severalmaz is engaged in the development of the Lomonosovskoye deposit in the Arkhangelsk Region.
• Public Joint Stock Company ALROSA-Nyurba holds mining licenses for the Nyurbinskoye and Botuobinskoye primary deposits.
• Nyurba Mining & Processing Division (MPD) operates the ALROSA-Nyurba projects under a services agreement.

Sales and Financial Results

• Alrosa's trading policy is regulated by joint regulations with the Federal Antimonopoly Service of Russia.
• In 2012, Alrosa signed a long-term agreement with Tiffany & Co.'s subsidiary, Laurelton Diamonds, for the supply of rough diamonds.
• Tiffany & Co. can annually purchase rough diamonds worth at least $60 million under the agreement.
• Alrosa actively supports the goals and requirements of the Kimberley Process and refrains from supplying rough diamonds to entities that do not comply with its standards.
• Alrosa also considers factors such as compliance with international certification schemes, tax and customs requirements, and accurate information provision.
• In 2017, Alrosa produced 39.6 million carats of diamonds, exceeding the year's target by 6%.

Alrosa Data Sources