Alrosa plans India office opening

The Russian mining giant is in talks to supply rough diamonds to three Indian companies, with the deals expected to be signed next year.

Russian diamond miner Alrosa is planning to open an office in India and is in negotiation to supply the precious stones to three companies in the country.

Domain-B reports Russian news agency RIA Novosti as saying the state-owned firm will distribute rough diamonds to the three enterprises – Diamond India, Ratilal Becharlal & Sons and Rosy Blue – providing they can agree contracts.

It is seeking to sign three-year deals with each business, which would see it provide rough gems worth $490 million (£308 million).

Signing of the agreements is expected to take place in March 2011, when Russian prime minister Vladimir Putin will make a working visit to Russia.

Recent figures released by the mining giant – which is responsible for 97 per cent of Russia's total diamond output – showed it expects to have sold rough and polished examples of the precious stones worth in excess of $2.78 million in the first nine months of 2010.