India’s KGK Diamonds has signed a memorandum of understanding with Russian miner ALROSA to set up a diamond cutting and polishing factory in Vladivostok. KGK group chairman Navrattan Kothari told GEMKonnect that the factory would be set up by July 2017 and would have an initial workforce of 150, growing to 500 in the future.
“We will process larger sizes and better goods at Vladivostok,” Kothari said, adding, “the workforce will initially be a combination of Russian workers and Indian specialists. But we are going to be training the Russian workforce and we hope to seem their numbers expand in future.”
KGK, which has a long-term rough supply contract with ALROSA — as also with Rio Tinto and is a De Beers Sightholder — already has two cutting factories in the Russian Federation. “We already operate one plant in Smolensk and one in Yakutia,” Kothari said.
According to him, the Vladivostok agreement guarantees KGK assured rough diamond supply of at least 15,000 carats of the larger-size and better quality goods annually from ALROSA’s Vladivostok centre.
While ALROSA had said originally that its Vladivostok centre was intended to enhance its reach in the Far Eastern markets, Kothari said the output from the Vladivostok factory would be sold globally. “The output from Vladivostok will sold in markets all around the world,” he said.