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OJSC ALROSA: The World's Largest Manufacturer of Diamond Firms

OJSC ALROSA is the world's largest manufacturer of diamond firms. It was created in Russia and is a partly state-owned corporation. The Group is engaged in the discovery, processing, production, and selling of diamonds. Mining is mostly carried out in western Yakutia, Russia. The origin of the company is traced back to the early extraction of rough diamonds in Russia, which dates back to the 18th century. However, ALROSA started continuous excavation in the late 1930s. The first primary diamond deposit was found in 1954, and Russian diamonds made their way for the first time. The Group's production operations are diversified into bases of eleven processes and more than 15 alluvial deposits. Its corporate structure of the company includes the general meetings of shareholders, supervisory board, president (CEO), and executive committee.


The logo of the company was to serve as the primary means of visual identification that is dedicated to the organization. It is an event and an item that is protected by copyright and so any other agency that decides to use this image may be charged for copyright infringement since OJSC ALROSA had attained the license for the logo (Arkhipov 2015, p. 90). In addition, anyone who uses the image commercially may be held liable for trademark infringement.

OJSC ALROSA Strategies and Motto

The company's strategies are meant to expound on its motto. Their motto is focusing on the diamond business. ALROSA always pursue a single product structure with much observation on the rough diamond exploration and production as the most significant and primary sector of the industry. In doing this, the company will have dispose of a good number of non-core assets. The strategy enables the company to retain its leadership position in rough diamond production. However, such a state can only be guaranteed by the level of production in the coming years. In that, the company must attain a certain level of production growth. In the year 2012, the company conducted a research, which revealed the production levels it must attain to maintain its status in the industry. The survey showed that from the year 2012 to 2019 the company's production must grow from 34 min ct to 41 min ct. Such a growth will allow the group to maintain its leadership (Arkhipov 2015, p. 88). Just to ensure this happens, the organization planned to dispose of a number of non-core assets that have negative margins and low impact since they do not support the core operations of the companies. Through this, the group would have reduced the debts and enhanced further investment.

The other strategy is to expand and maintain the Group's reserve and resource base through target exploration of more potential regions in Africa and Russia. The group's focus is in the two countries and its vow to continue investing in exploration in these regions to expand its reserve and resource base. The companies believe that these two regions of the world have the greatest potential for discovery of the commercially viable diamond products. However, the Republic of Sakha (Yakutia) will still be the Group's major production site. The other initiative the companies are embarking on is the enhancement of the efficiency of its exploration operations through applying a disciplined approach that requires all the activities to demonstrate and provide profitable returns to prevent further funding (Arkhipov 2015, p. 89).

OJSC ALROSA Mission Statement

The Group's mission statement is to enhance efficiency through continuous improvements and innovation. To attain such an operational efficiency to better its state the group must maintain its profitability during all the economic periods. The periods of rising or decline in the rough diamond prices must not affect the profit rates of the organization instead the Group must come up with strategies to ensure there are no effects. For instance, it must pursue opportunities to improve its cost structures at all the steps of production. Further, the Organization can decide to increase production over the medium-term and this will require new technology to improve the recovery ratios of diamond, create remote deposits and low-grade and carry out underground mining at more serious levels (Malginov, and Radygin 2014, p. 23). Also, the organization must improve on logistics, classification, and sorting practices to enhance liquidity processes and reduce the inventory turnover rate.

In support of the mission statement, the Group wants to become a recognized leader in the rough diamond industry with an outstanding reputation among its customers. The organization intends to assume the broader leadership role in the industry by playing an active role in strengthening its operations. Through this, it will expand its base of reliable and loyal customers by offering reliable diamond through long-term contracts. Such initiative will build their reputation since their operations will be customer-focused. Their processes that will manage the strong perception created by the Group include pursuing transparent pricing, improving policies, and customer service delivery (Malginov, and Radygin 2014, p. 32). Finally, the organization will improve its efforts to diversify and liberalize the regulatory environment for diamond market.

Involvement in Social Responsibility

In conducting its mission statement, the Group intends to set up a new model of social responsibility in Yakutia to provide vital services in remote areas. However, this will be just a continuation of their tradition of social responsibility in their areas of operation. The various efforts they have made are through creating jobs, training employees, paying taxes and charges, maintaining environmental and health standards. The new model of social responsibility by the Group is to fund the social infrastructure and services (Malginov, and Radygin 2014, p. 33). By doing this, it will help the government to meet its obligation on social infrastructure.

Products of OJSC ALROSA

ALROSA Group's main products are natural diamonds with a distinct feature. The diamond products offered by the companies have varying market demands both at the Russian and foreign markets. The companies guarantee the authenticity of natural and polished diamonds, observation of trade agreements in good faith, and legality of the production process in accordance with the international obligations. There are two types of diamonds; Gem-quality diamonds, which play a big role in the global market due to high quality and Industrial grade diamonds, which are used in the production of tools, stones and many more (Alexeev et al., 2013, p. 12).

In conclusion, ALROSA as the leading diamond company has managed to maintain its status by initiating certain measures as shown in their mission statement and strategies. Among its important strategies was the act of expanding and maintaining their reserve and resource base through target exploration of the more potential regions in Africa and Russia. The Group targeted Africa and Russia and its vow to continue investing in exploration in these regions to expand its reserve and resource base. Further, the companies have often ensured continued improvements and innovation in its production. Finally, ALROSA has developed an outstanding reputation among its clients and stakeholders.


Alexeev, S.V., Alexeeva, L.P., Kononov, А.M. and Shmarov, G.P., 2013. New Opportunities for Effective Tailing Storage Operation (JSC “ALROSA”, Russia). Procedia Earth and Planetary Science, 7, pp.10-13.

Arkhipov, G.I., 2015. Territorial-corporate Organization of the Metal Mining Industry of the Russian Far East. Geography and Natural Resources, 36(1), pp.86-91.

Malginov, G. and Radygin, A., 2014. The Progress of Privatization and the Situation in Regard of Ownership Relations in 2013.

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