Alrosa and De Beers Sign Agreement for Diamond Exploration

September 7, 2006

Alrosa and De Beers Sign Agreement for Diamond Exploration

De Beers and Alrosa signed what they called "an historic agreement" on Sept. 6 to explore joint diamond prospecting and exploration activies in Russia and other regions of the world, including Africa.

The agreement extends the two companies' 50-year relationship, according to a release by De Beers.

The companies said they would operate in "strict compliance" with the competition requirements enforced by the European Union, which ruled that De Beers' existing trade agreement with Alrosa violated EU anti-trust laws. In May, the two companies signed an agreement to begin reducing trade, in preparation for De Beers to stop buying diamonds from Alrosa by 2009.

The companies also said in the release that they intend to work within the guidelines of the Kimberley Process and the Diamond Best Practice Principles. They also are committed to working together with diamond industry organizations, including the World Diamond Council and the World Federation of Diamond Bourses.

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