Alrosa Expects Strong Growth in Diamond Sales for 2010

Russian state diamond monopoly Alrosa said Monday its rough and polished diamond sales should show a year-over-year increase by 50 percent to $3.3 billion by the end of 2010, according to a published report.

In 2009, the company reportedly sold nearly $2.2 billion in diamonds. In the first eight months of 2010, the company sold $2.6 billion, and September sales are expected at $200 million.

Alrosa is one of the world's largest diamond companies, accounting for 25 percent of global production.

Russia Hints at Selling $1B of Alrosa Diamonds

A Russian official said the government may be ready to sell the $1 billion worth diamonds it bought from the country’s mining giant, Alrosa, Bloomberg Businessweek reports.

The Russian government bought the gems to support state-owned Alrosa after diamond prices plunged more than 40 percent from their 2008 record as the global recession reduced jewelry sales.

Finance Minister Alexei Kudrin reportedly said the government is considering requests to sell the diamonds.

Prices of rough diamonds have climbed this year after producers, including De Beers, cut output and gem dealers rebuilt stockpiles, the publication reports.