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Alrosa seeks revenue boost from polished colored-diamond sales

PJSC Alrosa is seeking to be one of the world's leaders in polished colored-diamond sales, which is a market dominated by Rio Tinto and De Beers SA, Reuters reported May 16, citing Evgeny Agureev, head of the Russian diamond producers' sales division.

So far, the company's diamond polishing business of clear and colored stones has been modest, generating 2% of its total US$4.6 billion revenue in 2017.

But starting in 2018, Alrosa will sort its diamonds into 19 categories of stones, with a view to polish most of these to fetch higher prices, Agureev said.

The stones will be sourced directly from the group and will be processed at its cutting and polishing facility in Moscow.

Despite weaker profit margins in the global polishing industry, Alrosa believes that it can earn more by selling cut and polished gems.

"The polished diamond should be more expensive because it is a ready-made final product for which there is a demand, and we have taken all the production risks on ourselves," said Pavel Vinikhin, head of the miner's polishing division.

Alrosa recovered a 27.85-carat pink diamond and a 34.17-carat yellow stone in 2017. The company has yet to determine the number, size and shape of the polished gems to be produced from these stones.