[Author’s Name]
[Institution’s Name]
Essay on Russian Diamond Industry
Alrosa
Alrosa was founded in 1992. The company accounts for 99% of diamonds mined in Russia and 20% worldwide. According to geologists, at the company's present rate of mining it has a diamond reserve of 50 years. In 2003, Alrosa planned to earn a net profit of USD 203.4 million and mine diamonds worth USD 1.4 billion. In 2002, the company mined diamonds worth USD 1.38 billion.
Russia's diamond industry has been criticized as too conservative. But as from summer 2002, the market adopted a new classification for polished gems, expecting the "Russian cut" to propel the industry into a more favorable light internationally.
The new appreciation system is expected to enhance the marketing of polished diamonds and Russian cutting should be recognized as the most correct among experts, with the competitive advantages that implies (Balfour, 1992).
At present, Alrosa sells half of its mining production to the local cutting industry, which has been permitted by a presidential decree of November 2002, to export 15% of their rough purchases if the stones are too small to cut profitably in Russia. The exports are charged 6.5% export duty, unless
they are shipped on tolling contracts, which require that the polished stones are sold for the account of the Russian exporter.
Russia's diamond monopoly Alrosa sold 634 million dollars worth of uncut diamonds to South African giant De Beers in 2003, Alrosa's vice president said. The figures mark a 25-percent reduction in the annual sales, but De Beers still tops Alrosa's client list. Alrosa's uncut diamond sales reached a total of 1,693 billion dollars in 2003, with half of the produce sold on Russian market.
Under the terms of an agreement signed in 2001, De Beers must buy 800 million dollars in rough diamonds each year from Alrosa, the second-biggest diamond producer in the world....
This essay has the followings:
Total words: 1,458
Total reference: 5
Total price: £ 19.95
Click here to Order this essay!
Get Professionally written Essays that are:
• Written According to your Exact Requirements
• 100% Original and Non-Plagiarized
• Written by Expert
UK Writers
• Delivered to you before your deadline
Amazingly Low Prices - £9.95/page
