IN-HOUSE PUBLICATION OF THE LARGEST DIAMOND MINING COMPANY AUTUMN 2019 Autumn 2019 Autumn ALROSA

ALROSA MAINTAINS LEADERSHIP IN SOCIAL INVESTMENTS NEW RESEARCH Head of ALROSA sales division OF PRICEWATERHOUSECOOPERS Evgeny Agureev "We correct the terms of each trade session based on market conditions"

TRUE COLORS SPECIAL COLLECTION OF FANCY COLORED DIAMONDS BY ALROSA IN HONG KONG The Spirit of The Rose UNIQUE RUSSIAN PINK DIAMOND TO BE AUCTIONED EDITORIAL NOTE

Pink is perhaps the most “positively charged” color. Depending on the hue, saturation and context, it can cause various and sometimes polar associations, but emotionally it is always attractive and vivid. In the world of natural stones, the position of pink is invariably high due to its extreme rarity. That is why the appearance of large diamonds of this color at an auction traditionally causes a big stir. In Russia, ALROSA has cut and is going to auction a unique 14.83-carat purple-pink diamond. There was nothing like it in Russia or elsewhere in the world: the Gemological Institute of America (GIA) says that it is the largest flawless or internally flawless diamond in its color ever certified by the GIA. Its color is defined as Fancy Vivid Purple- Pink. Another feature of the diamond that makes it exceptional is the absence of inclusions. You can read here where and how this “perfect pink” was mined and cut. Every crisis in the diamond industry has its own specific nature, and this one is not an exception to the rule. Member of the Executive Committee, Head of ALROSA’s sales division Evgeny Agureev tells us about the clients’ support in the times of crisis, talks about the crisis factors and upside potential. PThe industry cannot live by crisis alone. Seeing the Dubai’s potential, ALROSA is planning to set up a project to offer exclusive diamonds there. Besides, together with the Russian Ministry of Finance the United Selling Organization of ALROSA is getting ready for the history-making move of the USO and creation of the Diamond Center in Moscow. Read about it in the interview with Evgeny Agureev. ALROSA has gone to virtual reality: the head of ALROSA’s cutting and polishing division Pavel Vinikhin explains what makes the new online diamond store convenient for traders, jewelers and those who dream of unique jewelry. How appropriate are experiments with jewelry design when it comes to traditional shapes and gemstones? We visited the jewelry production facilities of the Russian designer Liza Borzaya and learned how the enamel swallows she invented “flew” from the back of her hand to foreign customers across the ocean. How to build a jewelry business in Russia and what the designer puts into the concept of “art for life”. ALROSA Content 68

TERRITORY 16 54 New generation Coaching staff Three young ALROSA employees talk about how they use public speaking in order to improve safety on industrial sites 62 Contribution Living diamonds of Yakutia How ALROSA helps to preserve natural 8 ecosystems in the territory of Russian Northern Diamond Valley

66 Contribution COMPANY 34 Fancy colored Champion’s way 54 Children’s hockey and ballroom dance 04 Figures True colors stars sponsored by Severalmaz Mayskaya pipe: prospects of Russian colored diamonds at Hong Kong Jewellery & Gem Fair 74 deposit’s development IN DETAILS 06 Interview 36 Fancy colored 42 Partners ALROSA will choose the way Green lot Engagement rings custom LIFESTYLE Severalmaz discovered in China on rise of Mir mine reconstruction by 10 an increased amount of green The leading Chinese jewelry 68 Collection 2023–2024 gem-quality rough diamonds at retailer Chow Tai Fook celebrates Coco Chanel Russian stories Extracts from the interview of Sergey Karpinskogo-2 pipe 16 Fancy colored its 90th anniversary and tells Ears of wheat, kokoshnik diadems and Ivanov, ALROSA CEO to Vedomosti ALROSA Magazine about changes in double-headed eagles in Le Paris russe de newspaper The spirit of the rose 38 In Focus customers’ preferences and about Chanel collection ALROSA plans to put the largest purple-pink novelties in online and offline service 08 News diamond on an auction Diamond shopping online ALROSA launched a new online platform 74 Story 10 Interview for the sale of polished diamonds 46 Interview 24 Social report Close to heart Evgeny Agureev, director of Rules of jewellers What are the secrets of a brooch popularity ALROSA maintains leadership in 40 In Focus Russian jeweler Liza Borzaya: “Сlas- the United Selling Organization through the centuries? social investments Find diamond customers in sical forms can and must be made ALROSA PriceWaterhouseCoopers Advisory, play with in a new way, such as not 80 Trends talks about the company’s supportive LLC prepared the diamond producers’ banks being so far from generally recog- measures for its clients during the crisis, sustainability benchmark report. According ALROSA is offering diamonds to private nized standards and not to frighten In better color about the historical relocation of the USO to it, ALROSA is the leader of social banking customers: both as potential the customers – the evolution should Colored gem and diamond jewelry on the red and about ALROSA’s plans in Dubai investments jewelry and as investments be staged”. 62 carpet at the most dramatic events in 2019

ALROSA in-house Promotional booklet Magazine team: ­ Publishing House address: 10, Nizhyaya Signed to For free Evgeniya Kozenko, Pavel Prytkov, Syromyatnicheskaya st., bld. 9, Moscow 105120 print: distribution publication Editorial Office address: Yana Yushina Tel.: (495) 640-08-38; (495) 640-08-39 06.09.2019 24, Ozerkovskaya naberezhnaya, Head Editor: Magazine designed with the participation of PH building 1, Moscow Polina Tyutina “MediaLine” www.mlgr.ru Printed in accordance with the materials On-line version is 115184 Director General: Maksim Shlegel provided in the Mediacolor Printing Office Publication available The picture on the cover: Project Manager: Karina Melkumyan, Printing Office address: date: on the website Tel.: +7 (903) 265-36-00 ­ Victoria Mezenova Yana Tashkeyeva 28, Volnaya st., Moscow 16.09.2019 www.alrosa.ru

2 Autumn 2019 3 ALROSA FIGURES

million years – age of Mayskaya Kimberlite pipe Mayskaya pipe is 138 million years younger than its neighboring counterparts — Nyurbinskaya and MAYSKAYA OPEN PIT WILL BE SITUATED HERE Botuobinskaya pipes IT IS OVER 3 KM FROM THE NEAREST MAYSKAYA ‘BOTUOBINSKY’ DIAMOND QUARRY. ‘NYURBINSKY’ (IN THE PHOTO ON THE RIGHT) QUARRY IS NOT FAR FROM QUARRY ‘BOTUOBINSKY’ QUARRY PIPE The mining at the Mayskaya is PERIOD OF DEPOSIT DEVELOPMENT to be carried out by ALROSA's Nyurba Mining and Processing 400 100 to 300 Division METERS THOUSAND TONS

2006 2020 2025 2034 Currently, Nyurba Mining and target depth expected annual output year year year projected year Processing Division provides of open-pit mine of diamondiferous ore of Mayskaya Pipe of pipe exploration of recovery of exploration mining and processing of ore discovery start start end and sands from Nyurbinskaya 15 and Botuobinskaya pipes, and The accompanying from the same-name alluvial METERS recovery of deposits height of the future diamondiferous sands GEOGRAPHY The Mayskoye deposit is in the Location of Nakyn Kimberlite open pit banks from an adjacent placer Nakyn Kimberlite Field that Field: underdeveloped Nyurba 7.7 million carats of rough is expected to take also includes Nyurbinskoye Ulus in mid-channel basin diamonds were mined by place in the first two and Botuobinskoye deposits of the Markha River in its Nyurba Mining and Processing years. explored by ALROSA. inter-stream area of left- Division in 2018 12 & 5 bank tributaries – Nakyn and MILLION CUBIC YEARS The sands will be Khannya, at the source of the transported for Dyakhtar-Yurege spring. METERS processing to factory the amount of overburden rock to be removed No.15 of the Nyurba Mining and Processing 3.2 KM and the duration in years to expose the Mayskaya Pipe distance Division, ore processing diamondiferous ore is to be handled by from Botuobinskaya Pipe factory No.16 of the Nyurba Mining and Processing Division.

CLIMATE PEOPLE

Nyurba Mining Workers are busy The workers' Workers are Sharply The snow cover to 21% and Processing on a rotational camp is designed airlifted to the continental 7 8 - ° С establishes early + ° С percentage of months – 61 34 Division employs basis, two weeks to accommodate deposits by minimum in October and maximum Nyurba Mining and duration of around 1,500 on/two 600 inhabitants AN-38 planes temperature, melts in the temperature Processing Division people weeks off and Mi-8, Mi-171 wintertime in ALROSA Group's severest cold second half of in July, the helicopters conditions occur May warmest month overall production ( 4 Autumn 2019 in carats) in 2018

in January of the year 5 Carlos Folgoso Photo: ALROSA INTERVIEW

diamond appraisers from a few dozens of unlimited production capabilities – one long-term customers, a queue for viewing can increase them depending on the ALROSA diamonds resulting in logistics and time demand, producing billions of carats costs. However, now we have equipment and overstocking the market – synthetic WILL CHOOSE which can scan a diamond all around it diamonds lose their value the next day. giving a customer all diamond data in a In our opinion, the root problem is the THE WAY OF convenient format via their electronic method or sales mechanics itself. A customer OUR ADVANTAGE account for them to calculate options for in a jewelry store is offered "another option", IS THAT WE further cutting. allowing him or her to fit into their budget We do not need digitalization for its own and get a stone which is no different from KNOW DIAMOND sake. We implement only those projects a natural diamond at a first glance. This is CONTENT IN THE which can give us results in terms of a very dangerous trend, because after some health safety or environmental protection, time the customer will ask why he or she MIR PIPE AND THEIR projects which can optimize the mining bought something which becomes cheaper MINE VALUE . process or improve the economics. We by hundreds of percent every day [as it can are not a bank and we don't belong to the happen with lab-grown diamonds]. THE MINE IS financial sector, where digital technologies But some customers choose lab-grown RECONSTRUCTION UNIQUE AND EVEN are the company DNA. diamonds deliberately. People come to a IF THE MARKET jewelry store and want something fancy, BY 2023–2024 Limited Effect of Lab-Grown something unconventional. These are CONDITIONS BECOME Diamonds mainly young people. In the long run, – De Beers introduced the LightBox it depends very much on how the seller Leading Russian business newspaper Vedomosti interviewed ALROSA UNFAVORABLE – brand of jewelry with lab-grown explains to a customer what exactly he CEO Sergey Ivanov. We publish the extracts from the interview which DIAMOND PRICES diamonds to better understand the buys. I mean when we talk about natural are devoted to the company’s capital investments and to the effect of PLUMMET – THE dynamics of the lab-grown diamond rough and polished diamonds, we know lab-grown diamonds on the natural diamondsdiamonds' industry.industry. market and be able to influence it. Is they are unique and exclusive, they have PROJECT ECONOMICS this option interesting for you? Is the secondary value, their production is STILL WILL BE GOOD. problem of lab-grown diamonds critical limited and will decrease further. While Investment Projects of ALROSA reserves of the lower level of a kimberlite only in theory today. They haven't been for the industry? lab-grown diamonds are a different – Will you meet your investment pipe. Fortunately, we know well the implemented completely at any mine in the IF WE SUCCESSFULLY – De Beers introduced LightBox to thing. And we can see now how these two forecast for 2019 – RUB 29 billion configuration of the ore body in general world, we cannot go anywhere to look how RECOVER THE MIR protect its main business and differentiate markets split apart. excluding investments into the recovery at the explored levels. Therefore we will it works. There are no fields with identical between two products, i.e. a natural We carefully studied the market of of the Mir mine? What is included in need relatively small investments for challenging hydrogeology. MINE, THE FIRST diamond and a lab-grown diamond, and lab-grown sapphires, emeralds and this amount? additional exploration. We know that the Hopefully, while we perform additional PRODUCTION WILL explain to customers the real value of the other artificial precious stones – they – Now we consider options to adjust project will involve opening with two exploration, we will choose the final first one and the second one. Their efforts appeared much earlier than lab-grown the investment plan for this year. In borehole systems. At the same time we design solution. The decision will be START NOT EARLIER were successful, they managed to bring diamonds. Everywhere we saw one and 2018, the capital costs amounted to will drill monitoring holes to save time. made in 2023–2024. Until this time no THAN 2030-S lab-grown diamonds into a niche market the same marketing strategy: come and RUB 27.8 billion, we were completing This is necessary regardless of which capital costs for the Mir reconstruction close to imitation jewelry. They sell their buy our product, because it is sustainable, the construction of the Udachny mine design solution will be used for the mine are planned, except for those already synthetic diamond jewelry at relatively produced without using slave labor and and started up production in the reconstruction in the end. We must clarify assigned for the exploration activities. We low prices, while customers continue to etc. But today these arguments sound Verkhne-Munskoye field. This year the the field hydrogeology, all geotechnical will never recover the mine for its own the best ones at our facilities, work with buy jewelry with natural diamonds at just ridiculous. The recent studies show capital costs will be lower, because our parameters. Since the project of the Mir sake. When deciding to participate in any development funds and consultants. I significantly higher prices. that if we compare impacts of the natural investment program has reached the mine reconstruction in general looks project, we make sure that IRR (internal believe it makes sense to implement only When speaking about lab-grown diamond industry and the lab-grown plateau level, when most of large projects very positive, we decided to make these rate of return) is at least 20% and always those technologies which have already diamonds, one must remember that today diamond industry on the environment, have already been implemented. Now investments. The investment amount is analyze its environmental and industrial proved themselves useful at existing diamonds compete not only with lab- the sustainability of lab-grown diamonds most of the investments are used for $30 million, which is already included in safety parameters. companies in the world. grown diamonds, but with luxury goods in will be, mildly speaking, rather arguable. maintenance of operating facilities, the program. These activities will take We use unmanned vehicle systems for general: clothes, cars, wines, travels, bags According to a research made by Trucost their upgrading and retrofitting. The about four years. – One of the key investment items for monitoring open quarries, slide rocks – everything which gives people positive (a S&P division responsible for climate 2019 investment plan also includes At the same time, we continue working most of the companies in the diamond and mine surveyors. In exploration works feelings. Lab-grown diamonds are a real change studies and evaluation of climate infrastructure projects. on the project feasibility study, but so far sector include digital technologies. How we implement digital solutions for data challenge for the industry. Though it is change risks, etc. – Vedomosti), the СО2 In future we expect that our capital costs we don't have a complete design solution. much money does ALROSA invest in interpretation and digitalization. In the not a black box for us. We are well aware emissions from lab-grown diamond will decrease a little more, because we There are several competing options. The digitalization? What technologies do near future we will start discussions on of the things inside, we can see potential, production are 3–4 times higher than don't plan any new construction projects. main challenge is ensuring protection you find the most promising and what a digital mine project which will allow but limited effect on the market of natural those of natural diamonds. In 2023–2024 they will decrease to RUB against salt brines of the Metegero-Ichersky results did they help you to achieve? viewing all data from any side, forecasting rough diamonds and polished diamonds. 15–18 billion. aquifer system which caused the accident. – Our team visits various companies output and tracking any project changes. A few facts: only a couple years ago Extracts from the interview titled "The Chief Executive Officer As far as the reconstruction of the All potential solutions are challenging, to learn from their experience. We Another example is creation of digital the difference in prices for lab-grown of Alrosa: "Demand for Diamonds to Start Recovering in Mir mine is concerned, to develop the starting from freezing the massif and analyze IT solutions used by Russian and diamond duplicates. Selling diamonds diamonds and natural diamonds was Autumn", Vedomosti newspaper, № 140 (4867), interviewer: feasibility study, we must confirm the ending with other scenarios which exist international companies and implement today involves visits from experts, 40%, now it has reached 80%. Considering Polina Trifonova

6 Autumn 2019 ALROSA NEWS ALROSA REMAINS CONSTITUENT Over the past 13 years, ALROSA has OF FTSE4GOOD INDEX SERIES allocated more than 950 million rubles ($15 million) for the implementation FTSE Russell confirmed that ALROSA remains a constituent of the FTSE4Good Index Series of a program to reclaim, eliminate dusting facilities, and recreate a comfortable environment in the areas where the company operates. Created by the global index and data Change. Businesses included in the ALROSA also has a BB rating in the provider FTSE Russell, the FTSE4Good FTSE4Good Index Series meet a variety MSCI ESG rating system that assesses Index Series is designed to measure of environmental, social and governance environment, social responsibility and ALROSA the performance of companies criteria. For the first time, ALROSA was corporate governance. Besides, the company demonstrating strong Environmental, included in the FTSE4Good Index in 2016. is in the top 10 of the environmental RECLAIMS Social and Governance (ESG) practices. In 2018, ALROSA allocated almost RUB 11 responsibility rating of Russian mining The FTSE4Good indexes are used by a wide billion (approx. US$172 million) for social companies developed on the initiative OVER Cvariety of market participants to create investments, including pension payments, of the World Wildlife Fund (WWF) of and assess responsible investment funds regional development programs, Russia and the UNDP / GEF project of the and other products. corporate social programs for employees Ministry of Natural Resources of Russia. In FTSE Russell evaluations are based and their families, and about 500 social 2019, the company received the Diamond on performance in areas such as and charitable projects. Environmental Empowerment Fund (DEF) award for Corporate Governance, Health & expenditures exceeded RUB 5 billion implementing social projects in the regions Safety, Anti-Corruption and Climate (approx. US$78 million). where it operates (Community Stewardship). 4 MLN SQ M OF INDUSTRIAL LANDS

Since 2006, ALROSA have been annually ability to implement socially oriented and processing division in Udachny. At financing the land reclamation and the activities. To the year 2002, the main the placer deposit near Mirny, a site for recovery of the habitat that was typical concept of reclamation of disturbed lands land reclamation was created. To restore of the area before the start of diamond was to carry out only a technical stage for the fertile layer and plant composition, mining. Thus, over the past 13 years further overgrowth. In 2002, reclamation the company buys flowering plant seeds, the company has allocated more than became more complex with phased bushes and tree seedlings. 950 million rubles for the restoration of implementation of works combining both The reclamation of the territories began Sthe fertile layer and planting of dozens technical and biological reclamation. in Mirny, where almost all the dump of grasses, shrubs and trees in the areas, Today, the company reclaims land, water grounds of the Mir open-pit have now been where its mining and processing divisions reservoirs and integrity of land after reclaimed. The reclamation of the Udachny are located. The land reclamation also exploration," explained Nadezhda Liss, open-pit dump grounds has also begun, took place in exploration and capital Chief Specialist for land reclamation and and dump grounds of International open- development areas. The total area of resources management of ALROSA. pit were partially restored. reclaimed land during this time exceeded She also noted that the company's Up to 2029, ALROSA plans to restore Participants of ALROSA 4 million square meters. employees are involved in land restoration: and rehabilitate 4,290 hectares of land Cheer festival with "When mining operations are they are engaged in sowing the territory, in exploration areas. The company will a basketball star Sergey completed, the company must restore and preparing the fertile layer, taking restore the fertile layer and set out the Bykov (on the left) and then return the area back to the owner measurements of plants, tying up young plants in the territories where tailings of Russian championship anchor Alexey Dudnik, (municipality or forestry enterprise). This trees, etc. For example, young specialists the processing plants in Mirny and Aikhal Yakutia is a policy of conducting business and helped with land restoration at the mining located.

8 Autumn 2019 9 INTERVIEW

Member of the Executive Committee, the head of the ALROSA's sales division EVGENY A G U R E E V explains how the current crisis in the diamond industry differs from the previous ones, how online sales of diamonds transform the rough diamond market, and what ALROSA, being the largest diamond mining company, does to support the market players.

"THE UNIQUE FEATURE OF THIS compare the current situation with that demand for diamonds in the market. Our of 2015. Our experts with many years of rough diamond sales grew every month. "We correct CRISIS IS ITS MULTIFACTORITY" industry experience believe that this cri- Even at that time, our experts had doubts sis is more severe than the crisis of 2015. whether such demand for rough dia- – Every month diamond-mining com- In their opinion, we had a worse situa- monds would be justified when it comes panies report on decreases in sales of tion only in 2008–2009. In this period, to selling the cut stones and jewelry. I be- THE TERMS OF EACH rough diamonds. ALROSA reported ALROSA left the market for some time, lieve that the expectations of retailers on decrease in diamond sales by 16% suspending sales of its diamonds. The and midstream were too high. In the end, to 18.9 million carats in the first half crisis of 2015 did not combine so many a great amount of diamonds remained of the year as compared to the first factors as it combines today. unsold ending up as stocks. Excess stock TRADE SESSION half of 2018. The key market players The root cause of the 2019 crisis is caused decrease in diamond prices from show similar dynamics. What are the overproduction of diamonds and high the end of 2018. reasons? stocks of cut stones, which need to be The second factor was the market based on market Many people do not want to admit the sold. How did it happen? In 2017 and transformation dictated by the United fact that the industry is in crisis. Experts 2018, the global diamond mining indus- States, which is the major consumer of di- differ in assessing its scale. Some experts try showed solid growth and there was amonds. Retailers are actively ­switching conditions"

10 Autumn 2019 INTERVIEW

to online sales. With online stores of diamonds, and jewelry. China has many In June session, we established dif- diamonds and jewelry, they do not need jewelry facilities dedicated for US orders. ferent percentage rates for the main to keep high stocks of the products. Upon They will become unprofitable under new volume, according to the contract, and receiving an order from a customer, sanctions. These events have a great influ- the extra volume: 60% and 50% respec- retailers order these items from the ence on the health of the global diamond tively. Again, we have not imposed any midstream (diamond cutters) or jewelry industry. Let me remind that, by some es- obligation to buy out the remaining part makers. The midstream, jewelry makers, timates, from 50% to 60% of jewelry being later. Customers wanted to have the same used to sell the products in large quanti- sold in the US is manufactured in China, percentage rate for the main volume ties to physical stores, but now they have including jewelry with diamonds. and the extra volume. We fulfilled their to take on the role of warehouses. More- Broadly speaking, we can see that the request in July. over, retailers want them to deliver the Chinese consumer is now very selective products within max. two days. in the face of the current trade war and – What other measures does the com- Another trend of the diamond market puts off expensive purchases expecting pany take? is the "last minute decision making". difficult economic situation in the coun- We postponed the July and August trade Retailers put purchasing of diamonds off try. Sales of diamond jewelry are decreas- sessions to a later date. One might ask to the last minute. Instead of ordering ing in China, especially in Hong Kong. what difference a few days of delay can WE ALLOWED the products for the New Year and Christ- The Hong Kong jewelry retailers reported make. When determining the session mas in June, they wait until July or even that the sales decreased by 16-18% in dates, we took into account any exhibi- OUR CUSTOMER August to take advantage of traditionally the first half of 2019 as compared to the tions and events planned for these peri- low seasonal prices. This puts high pres- first half of the last year. One of the key ods as well as vacation time, which might TO BUY OUT sure on the midstream. reasons are large-scale political protests have affected the effectiveness of the resulting in decrease in consumption of trade session. The crisis has no influence – Does it affect diamond-mining com- non-essential goods by the local popula- on the desire to take vacations. In April, panies? tion and tourists, whose flow plummeted. there was a slight positive dynamics 55% Of course it does. It affects not only dia- of which we might have taken advan- OF THE VOLUME mond cutters, but transforms the entire tage, but in May, nothing could stop the diamond pipeline. We also have to adapt "WE DO OUR BEST TO SUPPORT Indians from having their vacations. As SPECIFIED IN THE to the current environment. The point is usual, Europe took vacation in August. CONTRACT, WHILE whether the midstream was ready for this OUR CUSTOMERS DURING THIS Even in crisis people will take a rest dur- L E A V I N G transformation following the changes in ing Diwali in autumn. the Indian banking sector and tightening DIFFICULT PERIOD BY SHOWING We shifted the July session by five days of credit terms for diamond cutters. having provided our customers with all As you remember at the beginning FLEXIBILITY" information on the session in advance. Geopolitics interferes with the situation of 2018, frauds were discovered in the This helped them prepare their orders in the market. However, processes in the 45% Indian banks, related to diamond market. – What strategy does ALROSA follow in more carefully, better analyze our quota- diamond industry developed decades ago, According to one of fraud schemes, some this situation? tion and product offer. In addition, every our industry is very traditional and sub- UNPURCHASED. companies received huge loans without We do our best to support our custom- session we carefully adjust our sale prices ject to inertia. To be sustainable, we must HOWEVER, WE NEVER real collateral and ability to repay them. ers during this difficult period and this as necessary. In the end, we saw that all adapt to the environment quicker and be This caused the authorities to tighten the requires flexibility. We collect their these measures improved the effective- able to foresee difficult times. FORCE OUR CUSTOMERS government control and credit terms. requests and correct the terms of trade ness of sales of rough diamonds. However, as I always say, any crisis is TO TAKE OUTSTANDING Having lost bank sources of funding, sessions every month. Traditionally, August is one of the least a cleansing time. The companies which diamond cutters and jewelry makers, of Long-term contracts made for three active months. We decided to postpone gamble or take too high of a risk will not ROUGH DIAMONDS LATER course, reduced their turnover dramati- years at the end of 2017 determine fixed the session for one week, increasing the survive the crisis. On the contrary, com- cally. This was another precondition of volume of rough diamond sales for every interval between sessions, and to wait for panies which invest in their future will the current crisis. session. In July session, amid excess dia- high demand for new rough diamonds. In not only survive the crisis, but will even You should also add geopolitics to the mond stock, we allowed our customer to addition, we did not want to start the ses- strengthen their positions. The crisis will list of factors causing the today's crisis. buy out 55% of the volume specified in the sion in the midst of the vacation period show which of our potential long-term contract, while leaving 45% unpurchased. in Antwerp. customers are ready for the work with – Do you mean relations between However, we never force our customers In slack periods, we stick to our ALROSA. China and the United States? to take outstanding rough diamonds traditional strategy – price over volume, Since the last year, the United States and later – neither next session nor at the end which means that stable prices on the – When will the crisis end, in your China have been exchanging sanctions of the year. Based on the results of July market are more important than our opinion? by means of increasing import duties for session, our customers have bought out an sales volumes. There are two forecasts in the market. various products. In August, it was an- average of 57.5% of the rough diamonds Some experts believe that the crisis will nounced that the United States would ad- prepared for them in standard boxes. The – It seems like crises in the industry end in September, but we think that the ditionally increase the duties on imports midstream slowed down production of happen more and more often. situation will get back to normal by the from China from September 1. The list of polished diamonds and focused on sales of The events speed up and the environ- end of this year or by the beginning of the products includes rough and polished accumulated stocks. ment becomes more complicated. the next year.

12 Autumn 2019 ALROSA INTERVIEW

proximity to India — the UAE office is re- "DIAMOND CENTER sponsible for organizing diamond tenders in Mumbai. In addition to organization ON THE SEVASTOPOLSKY of public sales and tenders, the Dubai office helps to work with rough diamonds AVENUE" extracted by Catoca Ltd. Mining Co. This helps to improve the quality of sorting and – It has been a while since ALROSA an- content of sales boxes. nounced its plans to move the United In addition to the above, we see high Sales Organization to another build- At the annual client meeting, Moscow, 2019 potential in offering polished diamonds to ing. When will it happen? well off UAE customers. They are mainly ALROSA finalizes the purchase of the interested in colorless extra-large stones of business center on the Sevastopolsky exceptional purity. Of course, such a rare Avenue. thing as colorless polished diamonds also But this is not only about moving the attracts connoisseurs of luxury goods from United Selling Organization to another the UAE. Diamonds of ALROSA division building. Actually, this is a joint project based in Moscow develops its cutting capa- between ALROSA and the Russian Minis- bilities for unique gemstones; therefore, try of Finance. The Ministry of Finance we will have enough polished diamonds to wants to set up a diamond center, which deliver to Dubai. will accommodate the functions of gem- stone regulation, supervision and security – When will you start selling polished in addition to production department. The diamonds? business center of two buildings, includ- In slack periods, we We are not planning to start the sales this ing a 22-story building, will have enough stick to our traditional year, but in 2020 we want to have test sales space for departments of diamond sorting to get acquainted with Dubai customers’ and packaging as well as for other func- strategy – attitude. tions of the United Selling Organization PRICE OVER and a comfortable customer reception VOLUME, WHICH – Last year you introduced a new classifi- zone. The business center will also ac- cation for colored rough diamonds. Was commodate the administration office and MEANS THAT the new approach to rough diamond customer services of the diamond cutting sorting successful? facility of Diamonds of ALROSA. There STABLE PRICES Introduction of the new classification with will be a separate building for the state ON THE MARKET – Getting back to the company's opera- I would also like to note that the its team by adding to it a manager with an 19 color items enabled us to implement control organizations, including the Fed- tional results: ALROSA does not reduce United States which consume 50% of all extensive experience in the US diamond a strategy for cutting colored diamonds. eral Customs Service, the State Repository ARE MORE its output. world’s polished diamonds do not show market. This will help us attract new cus- ALROSA wants to be a world leader in for Precious Metals, the Assay Chamber, IMPORTANT We have 35 thousand employees. Being any decrease in sales. There is jamming tomers, including jewelry companies, de- production of fancy color diamonds. The and Almazyuvelirexport. a budget revenue generating company, at the midstream level within the dia- velop cooperation on marketing projects, Diamonds of ALROSA affiliate has a team Before the United Selling Organiza- THAN OUR SALES which provides over 40% of the Yakutia's mond pipe, but retailers will gradually promptly analyze the situation and trends of diamond cutters and process engineers tion, this building in the 1812 Year Street VOLUMES budget income, we have obligations to sell out the stocks. of the largest diamond market. who have many years of experience in was occupied by the State Repository for the region population and must provide We also plan to offer polished diamonds cutting tricky unique gemstones and are Precious Metals. But for the last three them with jobs and good salaries. Last with unique characteristics to customers able to make high quality products and decades it has been the location of the year we started production in the new EXCLUSIVE POLISHED DIAMONDS in Dubai. jewelry masterpieces from exclusive rough United Selling Organization. The USO Verkhnyaya Muna field, giving jobs to diamonds. building has become worn and obsolete. former employees of the Mir mine. We FOR UAE CUSTOMERS – Has ALROSA held polished diamond Some colored rough diamonds are sold There are no good conditions for our cannot afford to dramatically reduce the auctions in its Dubai office before? via tenders. Rough diamonds are sold employees and clients in that old build- output and suspend the mining activi- – In 2017, ALROSA made itself known No, we have not. We used to consider Dubai as complete sets sorted by color. This is ing. Many employees bought or have ties. Moreover, the slowdown of produc- as a producer of unique polished only as a sales hub with a well-developed convenient for our customers, because pre- been renting apartments in this district. tion will increase production costs. diamonds. How do you plan to develop infrastructure and an exclusive economic viously colored rough diamonds got "lost" Changing of the office location will be a In addition, now there is a good de- the sales of polished diamonds? zone where the Diamond Exchange and in boxes with standard products. Now tough decision for them. But they should mand for industrial diamonds that is why We use New York as a support point for representatives of many diamond custom- customers can buy a complete set having know that our move to the new building we maintain normal production rate, our polished diamond business. At the be- ers from all over the world are based. in mind a jewelry with gemstones of the will significantly improve the working considering demand for these items. ginning of the year, ALROSA strengthened Dubai is also convenient because of its same color. conditions and customer satisfaction.

14 Autumn 2019 15 ALROSA FANCY COLORED THE SPIRIT

The 14.83-carat oval polished diamond cut by the ALROSA plans to put ALROSA’s Moscow cutting division combines unique characteristics of weight, color and clarity. The GIA gemological laboratory declared it the largest polished THE LARGEST PURPLE-PINK Flawless or Internally Flawless diamond among Fancy Vivid Purple-Pink diamonds they have ever graded. The great pink diamond turned out to be a puzzler for DIAMOND ON AN AUCTION cutters. Here is the story about how it was mined, cut and polished and named.

P rofile P rofile ROUGH DIAMOND POLISHED DIAMOND MINED On July 1, 2017 at the (according to GIA certificate): Ebelyakh placer. The WEIGHT 14.83 carats deposit is developed by ALROSA's subsidiary COLOR Fancy Vivid Purple-Pink Almazy Anabara PURITY Internally Flawless (IF) WEIGHT 27.85 carats SHAPE modified oval COLOR pink NUMBER 69 OF FACETS

16 Autumn 2019 17 ALROSA FANCY COLORED

POLAR MIRACLE

Discovery of the pink diamond in 2017 became a milestone event for Russia because we have never found anything like that in the history of the Russian diamond mining industry. Before this, there were only a few diamonds of the same color and of more than two carats mined at the ALROSA Group deposits in the last eight years. However, the largest of them was just under four carats. The 27.85-carat pink diamond crystal fragment was found by personnel of the Udachny Mining and Processing Division in mid-summer 2017. It was discovered during final recovery of rough diamonds delivered from Ebelyakh diamond placer. This diamond placer is located in the area of the Ebelyakh creek 250 km north of the polar circle. This area is mined by ALROSA's subsidiary Almazy Anabara. Almost all deposits of ALROSA Group contain color diamonds, but such findings are very rare. The Group mines most of its color diamonds at polar placers of Almazy Anabara and at Lomonosov deposits in the Arkhangelsk region. How diamonds By the way, 2017 was a memorable year Almazy Anabara performs their mining operations are mined at for Ebelyakh placer: in the same season by seasons. Personnel works at diamond mines on polar diamond a 34.17-carat bright yellow diamond a rotation basis with each rotation period lasting a placers was found here which was cut into the few months. 20.69-carat Fancy Vivid Yellow polished In winter, when the ground is frozen, there is diamond of the square emerald shape (you a polar night period in the Arctic. The ambient can find an article on this diamond in the temperature can go as low as minus 60 degrees summer edition). Celsius. During this period, the personnel make ALROSA gave an opportunity to its sampling pits – narrow holes as deep as 25 m – at long-term customers to look at this mining areas. Then they take out sand samples in unique rough before cutting: the Russian buckets from the sampling pits to clarify the diamond largest pink diamond was presented at content in specific areas and choose the most the annual clients meeting in Antwerp in promising ones. This is followed by stripping works at February 2018. a chosen area. The stripping or debris can go as deep as 10 m. After removing empty sand, the personnel loosen and take out diamond-bearing sands and deliver them to stockyards where they are kept until summer. In May and June, the diamond season starts and can last up to 100 days. The final recovery of mined diamonds, i.e. separation of crystals from other materials and minerals as well as their further cleaning, is performed by Udachny Mining and Processing Division.

18 Autumn 2019 19 ALROSA FANCY COLORED

a three-dimensional model of a rough The scientists believe that the diamond with all its features. After creating a 3D model, we started pink color planning the rough diamond: we inserted different variants of shapes IS CAUSED BY PLASTIC of the future polished diamond into a DEFORMATION three-dimensional copy. We considered HIGH STRESS mainly modified fantasy cuts that allow OF THE DIAMOND CUTTING us to concentrate and evenly distribute color in the future diamond as much as CRYSTAL possible. LATTICE DURING Pink diamonds are known for their high In the end, we found Oval Modified internal stress, therefore a rough diamond Dmitry Boguslavsky, Brilliant to be optimal. In our opinion, MOVEMENT OF MANTLE can break or crack ("burst up", as cutters this shape would allow achieving top ROCKS TOGETHER WITH say) while being cut. One can see high Head of Planning Department at Diamonds of ALROSA figures in terms of weight, color, clarity stress rough diamonds by their iridescent division, Moscow: and final cost of the polished diamond. THE DIAMOND TO THE color visible through a polariscope lens. At The next processing step is called Diamonds of ALROSA, specialists call such During the initial study of morphological preparatory. After setting each facet, we SURFACE roughs "bombs". The unique 27.85-carat features of the rough diamond, the scanned the rough diamond anew and pink rough diamond was also referred to matt surface of the crystal caught compared it with the previous file – this as a "bomb". our eye, which greatly complicated way we controlled the processing more When planning the rough diamond, the determination of the presence or carefully. According to our technology, experts considered its cutting into two absence of internal inclusions in the the clarity of the future diamond is parts to get two diamonds. But finally, they rough diamond and indicated a slight laid at this stage. As I have mentioned abandoned this idea, because the risk of risk of the presence of a “coat” on earlier, we saw every chance to get an bursting of the stone with high internal the diamond’s surface. Therefore, we Internally Flawless diamond, so we used stress during cutting was too high. decided to put small facets – “windows” the cutting-edge equipment, including around the entire perimeter of the microscopes. stone. This allowed us to make sure The third stage of the pink rough that the rough diamond has a natural diamond processing I would call “the purple-pink color and there are no struggle for color”. Our ultimate goal inclusions inside. After a detailed study was to get the top color grade of Fancy of the rough diamond, we realized that Vivid Purple-Pink. This can only be we have every chance of getting the achieved if the color is evenly distributed highest grade of the diamond’s clarity – in the diamond. Internally Flawless (IF). For example, for a classic round The first step in the processing of the diamond to be assigned Triple Excellent Of all diamonds annually pink rough diamond was 3D modeling on characteristics, the diamond must have submitted to GIA, no more a special scanner that allows creating perfect symmetry and proportions. In case of fancy colored diamonds, than 3% are classified as everything is different. Our observations proved that a key element in the colored diamonds concentration of color is not perfect Finally, we managed to cut a unique 1 in 10 000 polished and less than symmetry, as is the case with the classic diamond with top characteristics both diamonds is qualified as round cut, but, on the contrary, the in color and in clarity. The unique fancy colored. asymmetry of bottom facets with the nature of the rough diamond, as well The bright fancy color "Fancy Vivid" is the most suitable degree of angles. as great skills of cutters and process desirable polished diamond color. It is rarer In the process of the final cutting engineers ensured excellent results – than colorless diamonds or other fancy colors of the pink rough diamond, we had the Gemological Institute of America such as Deep (i.e. deep dark color) or Intense. to change the degree of the angle of (GIA) gave the diamond very high scores: 5% bottom facets several times and shift based on the certification results, the OF THOSE these facets in the direction we needed, diamond has internally flawless clarity COLORED achieving the asymmetry, observing (IF), i.e. has no inclusions; excellent the color behavior. After obtaining, in polishing and color Fancy Vivid Purple- DIAMONDS ARE our opinion, the optimal distribution Pink. There has never been anything like PREDOMINANTLY and concentration of color in the rough that before in Russia. All pink diamonds, diamond, we proceeded to the final which had the brightest color – Vivid, PINK polishing of all elements of the diamond. weighed under one carat.

20 Autumn 2019 21 ALROSA FANCY COLORED

CRYSTAL CLEAR

Experts split diamonds into two types: type I refers to diamonds with nitrogen atoms in crystal lattice, while type II refers to nitrogen free diamonds. Type II diamonds are extremely rare. According to GIA, less than 2% of diamonds belong to this type. Type II diamonds are further divided into two groups: IIa and IIb. The type IIb includes diamonds with boron inclusions in their crystal lattice. Type IIa diamonds are the purest ones in terms of their chemical composition, because they contain no inclusions, are very rare and therefore are highly valued. According to the results of special analysis by GIA, the ALROSA's 14.83-carat pink diamond belongs to IIa type. As noted by the Gemological Institute of America, IIa type pink diamonds were found in various parts of the world. The first known region where these diamonds were mined was India, particularly the Golconda deposits. Other significant findings were John King, made in Brazil and Africa. Famous IIa type pink diamonds include a 28.15-carat historical Agra Chief Quality Officer, GIA: diamond. In a world of colored diamonds, pink diamonds are some of the most treasured FINDING THE UNIQUE and have been forever throughout history. NAME They are extremely rare, and especially at larger sizes. It’s unusual to see pink The ALROSA's unique diamond was named "The diamonds in the market over 1 carat today. Spirit of the Rose" after the one-act ballet by Sergey So, to experience a diamond, like The Spirit of Diaghilev "Le Spectre de la rose" (The Spirit of the the Rose, weighing more than Rose) which was premiered at the Monte Carlo theater during the legendary Russian Seasons in April 1911. Ten-minute dancing sketch was staged by Michel Fokine for two prominent dancers, Tamara Karsavina 14 CARATS, and Vaslav Nijinsky. is exceptional. GIA is in a privileged position The rough diamond from which The Spirit of the to see many of the world’s most important Rose was cut got the name "Nijinsky". Vaslav Nijinsky colored diamonds. And pink diamonds have who was the first and, as experts in classical dance say, always been some of the most valued and the best male dancer of The Spirit of the Rose, finished recognised for their beauty throughout the his stage career also by this ballet. The ballet was millennia. To see large pink diamonds is RIA NovostiRIA performed at the Metropolitan Opera in 1917. truly a rarity, a gift to GIA that few hundreds The wife of Nijinsky, Romola de Pulszky recollects: would be able to see. And our grading system, "It is impossible to describe how beautifully Vaslav danced this role. I have never seen the movements of the grade of fancy vivid, represents those arms and hands more beautiful. Raising arms above diamonds with the most saturated color, the the head, he unfolded them like petals of a rose. purest color they can obtain. The Spirit of the Nijinsky approaches Karsavina, slightly touches her with his finger-tips and engages her in dancing… But Rose is an example of the diamond falling once the first beams of sunlight appear, The Spirit of into that grade of fancy vivid and its purple the Rose flows out of a window like a blow of wind… pink color makes it truly unique. Coupled with Bursts of applause and cheers followed the dancer leaving through the window.” being internally flawless, relatively absent of internal characteristics, truly an amazing diamond to experience and a rarity to come across at any time in our history.

22 Autumn 2019 23 ALROSA

PricewaterhouseCoopers Advisory, LLC has prepared the diamond producers' sustainability benchmark report in the period of 2016–2018. This study compares ALROSA’s performance according to the To complement the assessment universe, we then Staff, people, 2016–2018 median short list of selected sustainability indicators looked at international gold mining companies. Diamond mining is less energy intensive than other with performance of its international peers 50,000 types of mining and has certain unique features. For 51,480 in diamond and gold mining. As the research this report, however, gold mining companies are taken 40,000 47,500 shows, ALROSA Group is the leader in into the assessment universe due to the similarity in the diamond mining industry in terms of sustainability issues that are material to the precious 30,000 36,897 investing in social programs. In the last metals and minerals mining sector in general. From 24,207 22,383 20,000 20,557 18,943 three years, the company spent 3 percent of the range of ten companies (AngloGold Ashanti, 18,091 14,678 11,501 its revenue for these purposes. ALROSA also Anglo American Platinum, BHP Billiton, Barrick Gold, 10,000 10,768 demonstrates the highest expenditures on Goldcorp Inc., Gold Fields, NewMont Mining Corporation, 2,185 810 environment and the lowest greenhouse gas Nornickel, Polymetal and Polyus), we excluded three 0

SOCIAL REPORT emissions to revenue ratio. (Anglo American Platinum, BHP Billiton and Nornickel), because their production is concentrated on other Polyus Lucara

minerals and metals and gold is a by-product with a small ALROSA Rio Tinto Diamond Goldcorp De Beers NewMont Polymetal

share of production volumes. In January 2019, NewMont Fields Gold Mining Corporation and Goldcorp Inc. merged and now Barrick Gold Petra Diamond Petra GEM Diamonds represent the NewMont Goldcorp. ALROSA Ashanti AngloGold The final assessment universe consists of thirteen international mining companies, including six that MAINTAINS produce diamonds. Total revenue, mln USD, 2016–2018 median Benchmarking indicators 50,000 40,000 40,030 To select benchmarking indicators, we first looked at 30,000 sustainability issues material to the sector. The sector’s LEADERSHIP 20,000 operations and product offerings are associated with 8,374 10,000 7,253 various sustainability impacts on stakeholders and the 6,068 environment. 4,507 4,223 IN SOCIAL There is an established understanding of what 3,423 2,721 2,666 1,815 issues are material to precious metals and minerals 477 221 214 mining sector. Reputable international multilateral 0 INVESTMENTS organisations, such as GRI, SASB and Sustainalytics, among others, have published suggestions on sector- Polyus ALROSA Rio Tinto Goldcorp

specific material sustainability issues. We have put De Beers NewMont Polymetal together four versions of a materiality matrix (authored Fields Gold Barrick Gold

by GRI, SASB, Sustainalytics and ALROSA) to create a GEM Diamonds Petra Diamonds Petra Lucara Diamond Lucara

short list of sustainability benchmarking Ashanti AngloGold indicators. Thus, we ensured that benchmarking is With the permission of PwC, we publish the main part of the performed objectively according to sector- specific report here. You can also download the original report on materiality. ALROSA’s official website. The number of peers taken for every benchmarking indicator varies. Benchmarking is performed only in Sustainability benchmark report cases where relevant sustainability information has Rough diamonds production is dominated by a small been disclosed and publicly available for more than two number of companies. For this report, we took major companies per indicator. rough diamond producers by volume, even though The set of short-listed benchmarking indicators includes: ALROSA alone accounts for roughly one-third of the • Community expenditures to revenue ratio global production volume. • Environment expenditures to revenue ratio The Diamond Producers Association (DPA), which • Share of women in the workforce accounts for about 75% of the world diamond production, • Average hours of training per year per employee served as an initial pool of companies to select from. As • Energy consumption to revenue ratio of August 2019, DPA members include ALROSA, De Beers • Water consumption to revenue ratio Group, Dominion Diamond Mines, Gem Diamonds, Lucara • Share of water recycled and reused Diamond, Murowa Diamonds, Petra Diamonds and Rio • Greenhouse gas emissions to revenue ratio. Tinto. Due to lack of disclosed sustainability information Material indicators of Share of waste recycled and reused, on Dominion Diamond Mines and Murowa Diamonds, we Employee turnover and Average monthly wage have been excluded these two companies from further assessment. excluded due to lack of disclosed information from peers. W24 Autumn 2019 25 SOCIAL REPORT 26 median 2016–2018 to revenue % ration, expenditures Environment 2.2

0.4 1.2 1.1 Autumn 2019 GEM Diamonds Polymetal Polyus ALROSA environmental management plan for different stages stages different for plan management environmental effective an have that Companies plants. and animals on humans, effects harmful have It can overburden). mining with contact come into water subsurface shallow and surface when formed metals, heavy in rich water, acidic (highly risk significant a particularly is drainage rock Acid habitats. of wildlife destruction and removal vegetation of landscape, alterations as such environment, on the of impact arange have can are material. compliance, environmental as well as impact, ecological and risks of environmental mitigation expenditures, protection environmental that considers ALROSA Environment expenditurestorevenueratio diversity. and heritage cultural services, educational medicine, to access including of issues, a range across communities supports government, regional the with partnership in and, programmes development regional many funds Company The region. Yakutia entire the in employer amajor also is ALROSA Aychal. and Udachny Mirny, in communities local for employer main and organisation important an is ALROSA engagement. community to gives ALROSA that priority the illustrate to seeks diagram programmes. development and assessments impact engagement, community local into incorporated be can that elements many are There needs. and expectations their understand to communities local with engagement strong and impact, potential and actual the understand to order in planning and assessment is communities local in communities. and governments of host part the on nationalism resource by motivated of actions risk the to exposed be may return in benefits socio-economic any providing without resources or community’s a country exploiting and rent-seeking in engaging as perceived are that companies mining and Metals disruption. without activities their conduct to and leases, and permits able obtain to be to communities local from support need companies Mining operations. from waste and emissions, water and air resources, or water energy local to for access competition as such operations, of mining impact social and environmental the through affected be may interests and rights Community community. on the of impact range awide have can This a region. in projects multiple in involved be may companies and and Sustainalytics. Map Materiality sector-specific SASB Disclosures, Sector GRI by as well as ALROSA, by material as highlighted It is industry. mining for the important crucially are relations community Local Community expenditurestorevenueratio Benchmarking results The development, operation, and closure of mines of mines closure and operation, development, The This peers. its among ratio highest the has ALROSA on people impact the managing in element A key of years, anumber over place take activities Mining 2016–2018 median 2016–2018 to revenue % ration, expenditures Community and territories where it operates. where territories and communities the to commitment strong its illustrates which ratio, revenue to expenditures environment Company. the across projects remediation and infrastructure key covered that plan 2011–2018 acomprehensive was environmental efforts environmental Company’s the of backbone The monitoring. and research environmental for funding treatment facilities, land recultivation waste activities and of and environmental construction in investing include These measures. protective and of mitigation range for awide responsibility takes and strategically effectively. more impact environmental potential the mitigate and mines new developing in resistance less face liabilities, legal and costs compliance their minimise lifecycle project of the 3.0 As seen in the diagram, ALROSA has the highest highest the has ALROSA diagram, the in seen As impact environmental its manages ALROSA ALROSA 1.2 Polyus 0.6 Gold Fields 0.5 Polymetal 0.5 AngloGold Ashanti 0.5 Rio Tinto 0.4 De Beers 0.4 Petra Diamonds 0.3 Barrick Gold 0.3 GEM Diamonds ALROSA 27 ALROSA ALROSA HAS THE HIGHEST SHARE OF WOMEN IN THE WORKFORCE AMONG PEERS.

Share of women in workforce ALROSA defines employee diversity as a material topic. Gender diversity is taken seriously by management. ALROSA believes that this disclosure provides a quantitative measure of diversity within an 34% organisation and helps in assessing which issues can OF ALROSA

SOCIAL REPORT be of relevance to certain segments of employees. As per GRI Reporting Standards, disclosure on Share EMPLOYEES ARE employee diversity offers information on equal opportunity. By promoting diversity, ALROSA fights of women FEMALE against discrimination to prevent employees from being treated unequally (i.e. unequal burdens or in workforce, % 2016–2018 median denied benefits) and treats each person fairly on the basis of individual merit. The diagram shows ALROSA’s clear advantage in its 34 ALROSA efforts to promote gender diversity. ALROSA has the highest percentage of women in the total workforce 25 De Beers among its peers. In Russia, women are barred by government 21 Polymetal regulations from certain professions in the mining industry, including construction and underground 19 GEM Diamonds work. Despite this, ALROSA employs women in mining-related professions at Yakutniiproalmaz 18 Petra Diamonds University, the Almazavtomatika R&D Centre, medical centres and management departments, among others. 18 Rio Tinto

Average hours of training per year per employee 16 Gold Fields ALROSA considers that training and education for employees is a highly material topic. As per GRI 15 NewMont Standards, disclosure on the average number of hours of training per year per employee provides insight into 15 Polyus the scale of an organisation's investment in training Average hours and the degree to which the investment is made across 11 Goldcorp of training per year the entire employee base. Training in sustainability reporting normally refers per employee, hours to all types of vocational training and instruction, 2016–2018 median pursued both internally or externally, if provided by an organisation for its employees. However, it is out of scope 262 Gold Fields of this study to ensure that all peers report training employees of all grades on a regular basis. Around consumption accounted for by purchased electricity. hours on the same basis. Regular health and safety 99% of the total number of competency development Diamond mining is less energy intensive than other 65 Barrick Gold trainings, for instance, might be the type of trainings not training provided was conducted by ALROSA’s internal types of mining and certain unique features. The counted by some peers but be counted at Gold Fields. training facility. energy intensity of operations is likely to increase 63 ALROSA ALROSA has an average number of training hours with decreasing grades of deposits and increasing provided to employees among its peers. The company Energy consumption to revenue ratio depth and scale. The choice between on-site versus 60 Polymetal provides professional education and training to its Energy consumption is considered material by ALROSA grid-sourced electricity, and the use of alternative and its peers. GRI* Sector Disclosures, the SASB** energy, can play an important role in influencing 45 De Beers * GRI – The Global Reporting Initiative is an international independent standards sector-specific Materiality Map and Sustainalytics both the cost and reliability of the energy supply. organization that helps businesses, governments and other organizations understand Sector Report all set energy management and Affordable and easily accessible energy is essential for and communicate their impacts on issues such as climate change, human rights and 14 Polyus consumption high on the materiality matrix. competing in a commodity market driven by global corruption. Mining and metals production are energy-intensive competition; purchased fuels and electricity account ** SASB – The Sustainability Accounting Standards Board was founded in 2011 to 8 GEM Diamonds develop and disseminate sustainability accounting standards. processes, with a significant proportion of energy for a significant proportion of total production costs.

28 Autumn 2019 29 ALROSA

Energy consumption Energy consumption Water consumption to revenue ratio, to revenue ratio, to revenue ratio, GJ/mln USD GJ/mln USD cubic meter/mln USD 2016–2018 median 2016–2018 median 2016–2018 median

10,365 Rio Tinto 6,797 NewMont 93,245 Petra Diamonds 6,080 Petra Diamonds 6,599 AngloGold Ashanti 39,647 GEM Diamonds GEM Diamonds 4,523 Barrick Gold 5,323 18,076 De Beers 4,492 Goldcorp 2,921 ALROSA 11,616 Rio Tinto 4,409 2,686 De Beers Gold Fields 1,285 ALROSA

SOCIAL REPORT 3,862 Polymetal Water consumption to ALROSA IS revenue ratio, cubic meter/ mln USD THE SECOND 2016–2018 median plants). In 2016–2018, the volume of consumed coal fell SMALLEST ENERGY by 80%, diesel by almost 90%, and crude oil by half. 120,691 Goldcorp 20,020 Polymetal CONSUMER TO Water consumption to revenue ratio The volume of water withdrawn and utilised is 15,686 NewMont REVENUE RATIO. considered material by ALROSA, as well as by the SASB 12,451 Polyus sector-specific Materiality Map and Sustainalytics THE COMPANY Sector Report. 11,639 AngloGoldAshanti Water is a key component in the mining process. CONSUMES ALMOST TWO 10,080 Gold Fields It is used in mineral processing, chemical reagent TIMES LESS ENERGY mixtures, and heating and cooling machinery and 4,922 Barrick Gold equipment. Metals and mining companies face PER REVENUE RATIO operational, regulatory and reputational risks due to water scarcity, water acquisition costs, regulations on IN COMPARE WITH THE effluents or amount of water used, and competition AVERAGE RATE with local communities and other industries for throughout ALROSA and operational improvements limited water resources. Companies in the industry are such as higher levels of water recycling and reuse and addressing risks by increasingly using new technology, lower levels of water loss when transporting. including desalination, water recirculation and innovative waste-disposal solutions. Reducing water Share of water recycled and reused use and contamination could also create opportunities The rate of water reuse and recycling is a measure for companies to improve their operational efficiency of efficiency and demonstrates the success of an ALROSA provides organisation-specific metrics and lower their operating costs. organisation in reducing total water withdrawals and to report on its energy consumption and efficiency, Reporting the total volume of water withdrawn discharges. Increased reuse and recycling can reduce which is the energy intensity ratio calculated in provides an indication of an organisation's relative water consumption, treatment and disposal costs. monetary units such as revenue. This ratio expresses size and importance as a water user, and provides Reducing water consumption over time through reuse the energy required per monetary unit and is often a baseline figure for other calculations related to and recycling also contributes to local, national and called normalised environmental impact data. As seen efficiency and use. regional goals for managing water supplies. on the diagram, ALROSA shows one of the best ratios ALROSA provides organisation-specific metrics to ALROSA ranks number one among its peers in among diamond producers and has a significantly report on its water consumption and efficiency, which terms of water reuse and recycling rate. This diagram lower ratio than any of the gold producers. is the water consumption intensity ratio calculated in illustrates significant operational improvements made For the past three years, ALROSA has significantly monetary units such as revenue. This ratio expresses by the Company. Water recovered while mining is being reduced the share of highly carbon-intensive fuels the water required per monetary unit and is often collected and then pumped down back underground. in its total energy consumption. The volume of coal, called normalised environmental impact data. As seen Furthermore, the amount of water recycled at processing diesel and crude oil fuels has been reduced in favour on the diagram, ALROSA clearly outperforms its peers plants alone grew 9% in 2018. The total volume of water of less carbon-intensive natural gas and electricity (both diamond and gold producers). This illustrates the recycled and reused by ALROSA grew 25% in 2018 purchased from renewable sources (hydroelectric importance that has been given to water management compared to 2016.

30 Autumn 2019 31 ALROSA

Share of water recycled SOCIAL REPORT and reused, % 2016–2018 median

97 ALROSA Greenhouse gas emissions to 90 Polyus revenue ratio, CO2 tonnes/mln 88 Rio Tinto USD 83 Polymetal 2016–2018 median 1,359 78 Barrick Gold 76 AngloGold Ashanti 1,500 1,114

NewMont GoldCorp 876 72 1,200 764 724 718 56 Petra Diamonds 645 900 31 Gold fields 442 407 308 301 600 151

ALROSA REUSES AND 300

RECYCLES GEM Petra Petra

0 Polyus Ashanti ALROSA Rio Tinto Goldcorp De Beers NewMont Polymetal Diamonds Diamonds AngloGold AngloGold Gold Fields Gold Barrick Gold 97% OF WATER AND RANKS NUMBER Greenhouse Gas operations by adopting industry-leading technology ONE AMONG THE PEERS emissions to revenue ratio and processes can create operational efficiencies. All mining sector-specific reporting guidelines list The following diagram presents an organisation- FOR THIS INDICATOR emissions in their materiality matrix, including the specific metric – the intensity ratio calculated as metric

GRI, SASB and Sustainalytics. tons of CO2 to revenue. Many organisations track their Mining operations are energy-intensive and environmental performance with intensity ratios, which generate significant direct greenhouse gas (GHG) are often called normalised environmental impact data. emissions, including carbon dioxide from fuel As seen on the diagram, ALROSA has the lowest use during mining, ore processing and smelting. intensity ratio among its peers. The descending three- The extent and type of GHG emissions can vary year trajectory illustrates the priority given to reducing depending on the metal or mineral being mined GHGs company-wide. The Company’s trucks and vehicles and processed. GHG emissions contribute to climate are being gradually upgraded from diesel and gasoline change and create additional regulatory compliance to natural gas engines. In 2018, ALROSA already had costs and risks for metals and mining companies due 300 trucks powered by natural gas instead of more to climate change mitigation policies. Companies carbon-intensive fuels. Notably, ALROSA achieved a 52% that cost-effectively reduce GHG emissions from their decrease in the presented ratio over 2016 to 2018.

32 Autumn 2019 33 ALROSA FANCY COLORED

SQUARE SUN GEM DATE-FRUIT

This vivid yellow T h i s e n o r m o u s square emerald- oval-cut diamond cut diamond weighs claims to be in TRUE COLORS MAGIC the spotlight. Its w e i g h t i s ARROWHEAD 50.21 carats and has a Fancy Brown- This Fancy Intense Greenish Yellow Yellow triangle 6.78 STARS c a r a t s . T h e color. weighs stone has VVS2 ALROSA IS SET clarity, excellent UNBROKEN TO HOST THE SECOND symmetry and 17.76 polish HEART ANNUAL TRUE COLORS c a r a t s . T h e precious stone AUCTION OF NATURAL is internally This f l a w l e s s . G I A COLOR DIAMONDS IN identified its SEPTEMBER. shape as pear. 6.03- CUSTOMERS HAVE carat heart-shape diamond has Fancy THE OPPORTUNITY Vivid Yellow color TO VIEW THE and VS1-clarity DIAMONDS AT THE HONG KONG JEWELLERY & GEM FAIR. The True Colors collection consists of more than Diamonds of ALROSA also prepared a set of colorless 200 polished diamonds of fancy polished diamonds for Hong colors and various shapes. Kong. They will be auctioned at the same time as the True Colors We want to introduce you EXOTIC PEAR collection. The set consists of about 30 colorless round-cut, some fabulous participants T h i s emerald-cut, princess-cut and of the True Colors collection. pear-cut diamonds with the total weight over 200 carats. The largest one is a 20-carat triple- 1.07- excellent round-shape diamond. carat “pear” has a very interesting saturated purple pink color.

34 Autumn 2019 D 35 ALROSA FANCY COLORED

Ilya Zezin, Arkhangelskaya and Karpinskogo-1 pipes, GREEN Deputy Chief Geologist the ratio of the number of gem quality of Severalmaz green rough diamonds at Karpinskogo-2 turned out to be a hundred times higher. "According to onsite exploration, such LOT a high number of green rough diamonds is prevailing at the upper levels of the Rough diamonds from Russian North in pipe, and going downwards their number Europe are known for a variety of shades. decreases by 2–3 times. We can assume ALROSA’s subsidiary Severalmaz, engaged that the source of radiation that led to in the development of the deposit in the the formation of green color in rough Arkhangelsk region, is the second largest diamonds is correlated with upper levels supplier of colored rough diamonds in of Karpinskogo-2," said Ilya Zezin, Deputy Photo by Nikolay Gernet ALROSA Group after Almazy Anabara in Chief Geologist at Severalmaz. According terms of volume. Pink, yellow and purple to him, the share of other fancy-colored rough diamonds were found at the deposit rough diamonds in the total volume at named after Mikhail Lomonosov, near- Karpinskogo-2 approximately corresponds gem quality crystals of blue shades were to the figures of Arkhangelskaya and also found here. Karpinskogo-1. Yellow, yellow-green and Lomonosov deposit, which comprises pink rough diamonds were also found at six kimberlite pipes, belongs to Karpinskogo-2. Severalmaz. However, rough diamonds Rare mined only at two of them―– Arkhangelskaya and Karpinskogo-1. Karpinskogo-2 pipe is located side by side with Karpinskogo-1 pipe. The current detailed development plan of Lomonosov diamond deposit does not provide for the complete development of Karpinskogo-2 pipe. However, while forming the northeastern open-pit slope of Karpinskogo-1 pipe, part of the uppermost and southernmost geological block of the neighboring pipe is involved in mining. Thus, in 2017–2018, Severalmaz mined the first volumes of ore at Karpinskogo-2. Rough diamond processing brought the first 46 thousand carats of rough diamonds from Karpinskogo-2. A distinguishing feature of this batch of rough diamonds was a very large number 410 of green gem-quality rough diamonds. OF 46 THOUSAND More than 410 out of 46 thousand carats CARATS OF of mined rough diamonds were gem quality green crystals. It is 0.9% of the DIAMONDS total volume recovered at Karpinskogo-2 UNEARTHED FROM in the batch 2017–2018. Compared to KARPINSKOGO-2 WERE GEM In this photo you see Karpinskogo-1 quarry. Karpinskogo-1 pipe comes into contact with Severalmaz involved the edge of Karpinskogo-2 QUALITY GREEN Karpinskogo-2 pipe. So, the upper layers of Karpinskogo-1 quarry actually uncovered the pipe, a part of Lomonosovskoye deposit DIAMONDS ore of Karpinskogo-2 pipe. in mining and discovered an increased amount of green gem-quality rough diamonds there.

36 Autumn 2019 37 Polished diamond ALROSA IN FOCUS digital passport:

Photo: capture from digital passport of marquise-cut 0.91-carat diamond look and share For As synthetic diamonds surge into business: the market, with the bulk of them not declared, traders, retailers and consumers are increasingly concerned by the risk of replacing ASSORTMENT natural stones with synthetic. In online store order to guarantee the natural origin To order goods on the website (including ON THE WEBSITE of a polished diamond, gemological wholesale), a legal entity needs to log in laboratories and diamond miners are as ALROSA’s corporate client. According W e i g h t from 0.3 to 5 carats developing tracing systems to track to Pavel Vinikhin, the company delivers Color colorless category, the diamond’s path from the deposit purchases to its customers worldwide. color range from D to to the storefront. With an effort to M (according to the The client has the opportunity to international system demonstrate the transparency of the assess the appearance of some polished of the GIA gemological polished diamond manufacturing diamonds on the website in different laboratory) process, Tiffany & Co began to lighting conditions: in office and daylight C l a r i t y from IF to I2 reveal their country of origin for illumination. C u t 10 shapes the engagement ring line this year. The new platform www.diamonds.alrosa. Polished diamonds can be sorted by In 2016, Chow Tai Fook launched ru is also an auction platform where you each of these parameters, as well as by a separate brand of jewelry with can examine unique stones – special size price. There are functions for saving filter polished diamonds, whose history can criteria and comparing multiple items. (large), colored diamonds – and apply for be traced starting from the mining participation in the auction. "Vibox and Dibox photo and video region. D I A M O N D content for the part of the assortment ALROSA also provides detailed is available on the website. Vibox and Dibox technologies for polished diamond information about polished diamonds detailed photo and video shooting provide on its website. Each item has its own examination from all sides, evaluation of SHOPPING ONLINE its brilliance and the effect of inclusions digital and video passport to record on the appearance, if any. Therefore, not only the diamond's identification when ordering a desired diamond number and its characteristics, but remotely, you will know exactly what you will get," Pavel Vinikhin notes. also the region and year of mining, ALROSA has launched a new online platform for the sale of polished diamonds: www.diamonds.alrosa.ru. To date, weight before cutting, name and A polished diamond reservation on the professional experience of the cutter. traders and jewelers from around the world have the opportunity to choose and order goods from an assortment website is valid for 7 calendar days. of about a thousand gems. Private buyers can choose a polished diamond for their future jewelry on the website The purchase history is saved in the Video with information about the as well. Diamonds have unique digital passports confirming its origin. customer’s account. polished diamond can be shared on The online platform is available in three social networks or shown to relatives languages – Russian, English and via messengers. Chinese. Among other things, the polished Being the world leader in diamond mining, or Arkhangelsk region in compliance with diamond owner will be able to add ALROSA is also engaged in cutting: the ethical standards. ALROSA is ready to tell the information to the electronic passport, company’s cutting plants are located in Moscow unique story of each diamond as it provides a for example, name it and specify what and Barnaul. By purchasing the finished complete production cycle. Pavel Vinikhin, the jewelry it has become a part of. polished diamond directly from ALROSA, director of the Moscow branch Diamonds of customers receive a 100% guarantee that it was ALROSA, told us about the functionality of the cut from a natural diamond mined in Yakutia new Internet platform. digital storefront "The assortment of polished diamonds on the platform is different for corporate and private clients. About a thousand polished diamonds are available to individuals: they can select and reserve a diamond they like in online mode, and later pick it up directly from the ALROSA cutting factory in Moscow," the director of the ALROSA Pavel Vinikhin cutting division notes. Who are the main clients of the new website? Those who want to be sure that a Director of Diamonds of ALROSA cutting stone is natural and to make a unique jewelry. The diamond selection and booking and polishing division service is also used by brokers who received an order for a gem of certain quality and characteristics from their customers; by jewelers with a ready jewelry concept. Private buyers can order through the platform a private preview of the collectable For private and investment diamonds. buyers: B38 Autumn 2019 39 ALROSA IN FOCUS

IN ADDITION TO BEING BOTH VERY VALUABLE AND PORTABLE AND HAVING "EMOTIONAL WEIGHT" AND Elena Sukhoveyeva, advisor to ALROSA APPEAL, CEO, shares hopes diamonds do not need to and expectations the be registered as property company has for private banking clients, sheds and officially transferred light on the product from person to person. This range, and talks makes polished diamonds about the prospects of servicing private banking an efficient tool to transfer customers wealth

ALROSA has designed a special service program for the buyers do not display any particular cut preferences. "We often see clients approaching us with questions affluent clients of several major banks: Sberbank, VTB, Most of them turn to global trends and personal like, 'I saw exactly the same diamond in Israel, but it Raiffeisenbank, and Gazprombank. Within the needs. "Round cuts are not on the top of the Most was cheaper – how do you explain that?' Or 'There is a program, the company offers polished diamonds Popular list, and private banking clients are well similar yellow diamond currently offered at Sotheby's, weighing three carats and more, including aware of that. They follow the trends, and are drawn why is yours more expensive?' exceptionally large diamonds over 20 carats and fancy to all the different fancy cuts, as they want to have If that happens, we take a look at the GIA certificate color diamonds like yellow and pink ones. All these something similar to the high art jewelry brands, for the diamond at the auction and the certificate for diamonds are made from rough diamonds mined from such as Graff or Cartier. Fancy yellow polished our diamond, and I explain in detail which parameters the company deposits in Yakutia and the Arkhangelsk diamonds were also highly successful at our demos," impacted the price. It could be the clarity level, the Region, and processed by experts of the Moscow Elena continues. different kind of cut, or a number of other factors, diamond cutting division Diamonds of ALROSA. Each However, if a client looks upon polished diamonds which influence its investment appeal and can be diamond has been certified by GIA, the world’s most to diversify the investment portfolio, the selection easily pointed out if you have the certificate. But if prominent gemological laboratory. process is different. "If that is the case, the bank tells someone somewhere saw diamond without seeing its ALROSA's new project has also included several us how much the client is willing to spend, and we certificate, we cannot analyze cases like this, because FIND exclusive demos, which allowed clients to personally select several diamond options and compile their the specific diamond features settle everything; i.e., Аinspect the diamonds, discuss their features and investment profiles," says Elena Sukhoveyeva. Polished it could have been liquidation price, and we cannot pricing with an ALROSA expert, and purchase any diamonds have several advantages as an asset: in comment on that. DIAMOND polished diamond of their choice. Taking place in addition to being both very valuable and portable, and, "While setting our prices, we closely monitor the February and May, the demos were attended by over among other features, adding 'emotional weight' and global Business-to-clients sector, including auctions 200 private banking clients. Personalized viewings can appeal, they do not need to be registered as property like Sotheby’s and Christie’s, and we guarantee that CUSTOMERS also be arranged on demand. and officially transferred from person to person. "This a potential buyer at these auctions cannot purchase For their own part, the needs of specific clients makes polished diamonds an efficient tool to transfer an exact same polished diamond at a lower price than depend on the purpose for which they are buying wealth. Other notable factors include their low what we offer. It is also important to remember that, IN BANKS unmounted diamonds. "If their ultimate goal volatility and weak correlation with other investment if you buy at ALROSA, you receive a newly polished is to find a perfect polished diamond for future types," Elena Sukhoveyeva comments. diamond directly from the source producer, which is ALROSA is offering diamonds to private jewelry, they usually arrive at the demo with a clear Quite naturally, both consumer categories are very not the case with an auction house". ALROSA is planning understanding of the diamond they are looking for, conscious of diamond pricing; especially since the to expand its list of partner banks. In the future, the banking customers: both as potential such as colored versus colorless," explains Elena price for a diamond may range from several thousand company also intends to allow reselling its polished jewelry and as investments Sukhoveyeva. At the same time, wealthy Russian to several hundred thousand or even millions dollars. diamonds at in-house auctions with a minimal fee.

40 Autumn 2019 41 ALROSA PARTNERS

CHOW TAI FOOK FOUNDED IN 1929 At first, the firm specialised in gold jewellery. In 1960’s, the late Chairman Dato Cheng Yu-Tong, besides realizing the status of diamonds in the western culture, also envisaged a growth of diamond appreciation in Hong Kong. Chow Tai Fook acquired Zlotowski's, a South African diamond cutting & polishing company and started to grow its diamond business. Dr. Henry Cheng, Chairman of Chow Tai Fook Jewellery Group (Left 2) and jewellery 4Cs grading for important and special Apart from its eShops and online artist Wallace Chan (Right 2) officiated at occasions, so diamonds became the marketplaces as its major online shopping the unveiling ceremony of the Cullinan symbols of achievement and social status. platforms, CTF engages customers as Masterpiece "A Heritage in Bloom" in 2015 Thus, they used to go for top color and empowered by its online-to-offline (O2O) clarity diamonds that they could afford. synergy. Social commerce and WeChat ENGAGEMENT Nowadays, customers, in particular the mini-programmes in Mainland China allow millennials, prefer smaller diamonds for shoppers to share comments on products daily wear and fashion which are perfect and shopping experiences which engage 30,400+ RINGS CUSTOM for their self-expression. "Yet, one thing is their circle of friends. always true – natural diamond is natural Cloud kiosks are installed in-store to EMPLOYEES heritage which is rare, unique, authentic provide a wider selection of products IN CHINA ON RISE and precious," CTF believed. "The unique not limited to store level and support an capacity of natural diamond expresses and enhancement in transaction efficiency. symbolises the most important human There were 13 stores with cloud kiosks emotions – love and commitment which installed in FY2019 and more will be rolled are incomparable." out in FY2020. US "To seize the opportunities arising from This year, the leading Chinese jewellery retailer Chow Tai Fook celebrates Great potential for selling O2O interactions, we have levered on our its 90th anniversary. CTF tells ALROSA Magazine about changes in diamond exclusive pieces online extensive retail network paired with our Speaking about online shopping experience, inventory unification system to collaborate $8.5 BLN* jewellery customers preferences through the decades, about what millennials CTF noted that in general, lower average with online platform partners such as selling price items are more popular in JD.com and Tmall, and launched the online REVENUE FY 2019 appreciate more in diamonds and in the shopping process. e-commerce. The average selling price order distribution programme since FY2017". of gem-set jewellery (diamond jewellery This programme enables customers to take included) was HK$1,600, or US$204. "Yet, jewellery deliveries directly from a nearby According to CTF, the engagement ring dollars – customers tend to do online "WE SEE A HUGE as e-commerce is becoming more mature point of sale in shorter delivery time. In tradition has been common in Hong Kong. research before they choose and buy rings in Mainland China and younger customers FY2019, CTF had over 500 stores in Mainland While in Mainland China, with a steady at physical stores, especially for those with POTENTIAL FOR tend to use mobile payment to shop online, China using online order distribution, 22.8% demand from about 10 million newly- bigger stones set. LAUNCHING HIGHER we see a huge potential for launching accounting for approximately 6% of China wed couples each year and a rising trend "Yet, we see an increasing demand for higher average selling price items such as e-commerce retail sales value. OF REVENUE WAS for wedding proposal, coupling with an customized engagement rings as customers AVERAGE SELLING exclusive products on online platforms," the CTF also involves key opinion leaders on increasing affluent and well-educated also want to show their commitment with PRICE company said. social media to promote trendy and online PROVIDED BY GEM-SET Chinese population who are wealthier a promise ring which is special and one-of-a- So, what do CTF customers get in the exclusive products. JEWELLERY INCLUDING and more sophisticated in jewellery kind," CTF spokesperson noted. ITEMS SUCH virtual world? For personalized jewellery, and diamond selection, the demand The current generation seeks ways AS EXCLUSIVE CTF developed its online customization In offline experience, DIAMOND JEWELLERY for wedding jewellery and diamond to express their personality not only on platform D-ONE. Customers can choose it’s all about ambience engagement rings is on the rise. special occasions, but in everyday life. diamonds and jewellery design with a few CTF introduced experience shops in 2017. PRODUCTS * HK $66.7 bln, +12.7% year-on-year. For the engagement rings, as they In the past, customers chose diamond taps on their smartphones. The order can be The company arranged offline boutiques Currency conversion into US $ was usually carry higher value – over thousands jewellery in sophisticated design and high ON ONLINE ready for delivery within 24 hours. with unconventional memorable interiors. made to 2019.03.31 PLATFORMS" A42 Autumn 2019 43 ALROSA PARTNERS A bracelet, a ring and a pendant from the Kling Kling collection exclusively CTF COLLECTIBLES available in experience shops BRANDS CHOW TAI FOOK JEWELLERY T MARK ARTRIUM JEWELRIA HEARTS ON FIRE MARKET FORECAST Speaking about expectations in diamond MONOLOGUE jewellery sales in Hong Kong and Mainland GEM-SET JEWELLERY China, CTF noted, that given the continual SOINLOVE macro uncertainties kicked in since the INCLUDING DIAMOND second half of FY2019, the consumer JEWELLERY ACCOUNTS sentiment might still be affected. "Yet, Christmas and New Year is a typical FOR shopping season coupling with our annual PINK mega sales activity usually kicked in around mid-December to January in Hong Kong, STAR while the Singles' Day or Bachelors' Day 11.7% in Mainland China has become the largest DIAMOND offline and online shopping day in the world, IN CTF E-COMMERCE The CTF Pink Star was purchased we believe customer traffic would be decent BUSINESS (FY 2019) in 2017 at auction for US$71.2 during the festive shopping seasons," million, becoming the world's most the company said. Experience shop in HK, China expensive gemstone.

Experience shops with thematic layouts were opened in cities such as Hong Kong, Xi’an, Hefei. Each experience shop is infused with its respective local culture to create a unique blend for each market. Entering one of it in Hong Kong, you become surrounded with hundreds of gift boxes and feel like you’re in the epicenter Cloud kiosks ARTRIUM store in Changsha, Mainland China of eternal celebration. The other one is located in Xi’an, Mainland China – a city from 4Cs, customers nowadays purchase MORE THAN famous for Terracotta Army. There is diamond in pursuit of its authenticity a conveyor belt with moving jewellery and traceability. In 2016, CTF launched T installation in the centre of the store. MARK diamond brand to boost customer With rejuvenated shopping experience confidence in their gem’s authenticity. Each 3,200 and elegant shop ambience, experience T MARK diamond is inscribed with a set POINTS OF SALE IN GREATER shops have been gaining traction and of unique serial numbers to make it easy CHINA, JAPAN, KOREA, "A HERITAGE IN BLOOM" MASTERPIECE widely embraced by customers, CTF for customers to verify the diamond’s life SOUTHEAST ASIA AND THE expressed. CTF expects more experience journey. So, they can learn the diamond’s A 507-carat rough diamond from Africa named The Cullinan Heritage, was mined in 2009 and shops to be opened in Mainland China and country of origin and when it was cut UNITED STATES purchased by CTF in 2010. The company cut it and created into the masterpiece "A Heritage in Hong Kong in coming years. and polished. "Our brand is successful in ABOUT Bloom". This jewellery was unveiled in 2015. drawing the attention of the market to the THE MASTERPIECE IS CENTRED Customers want to know their importance of traceability and transparency diamond’s origin of a diamond journey. Some of the industry UPON 24 D-COLOR INTERNALLY FLAWLESS (DIF) According to CTF, customers are getting players had also announced their initiatives 3,100 DIAMONDS, WITH THE LARGEST IN 104 CARAT DIF more sophisticated and knowledgeable to enhance diamond traceability and IN MAINLAND CHINA about diamond’s 4Cs grading. Apart transparency," CTF spokesperson added. BRILLIANT ROUND DIAMOND

44 Autumn 2019 45 ALROSA INTERVIEW

Before establishing her own jewellery brand, Liza Borzaya worked as a representative of a field- specific company for several years and studied the market from the ground up. Therefore she approached a new business – a designer of jewellery collections – knowing many tricks of the trade. Liza tells us about specifics of the Russian jewellery, jewellery pricing, global trends, piracy and love for diamonds in her interview to ALROSA Magazine

– Liza, please tell us the story of your first piece of jewellery – a palm bracelet with swallows? – When it was created, I had already worked in jewellery for five years as a consultant for a German company and took part in various jewellery exhibitions. But designing your own piece of RULES jewellery is another story. It all started with a wedding invitation to the French Riviera. I decided to add something special to my look – a small, but catchy piece of jewellery. Swallows were the first thing my mind flew to. Back then I was deeply interested in the history of jewellery and totally charmed by Renе́ Lalique with his enamelled jewellery and swallows: they both seemed a true revolution in the OF early 20th century. My choice was a high-necked dress without sleeves, so the best decision was a bracelet with swallows. I came to a jeweller and together we created this design with the figures right in front of a palm. Everyone grabbed my hands on the wedding and asked where did I get it. And when they heard that I was the author they asked me to make another one.

– So, you got your first orders. – Yes, and it was unexpected, because actually the bracelet was quite outrageous. By then I got an eyeful of classics and a plenty JE of other styles, so I was well versed and open for experiments. But such active reaction from others who rushed to order the “alike with butterflies” or “with bumblebees” was slightly surprising. All WE in all, there were so many orders that I decided to establish a brand. – Where was your production facility situated, in Russia? – Yes, exactly in Russia. I got several large orders on the eve of 2015. You probably remember what happened in December 2014 when the dollar surged upward to 80 roubles. Consequently, the cost of the placed orders was growing day by day and no one knew what LLE would be the dollar rate the next day. The customers asked me to fix the rouble prices. I decided to try and started to search for Russian jewellers – I had previously placed my orders in the USA, but in the light of the new rate it was profitless. Finally, I found good specialists and then, as early as in January, it was resolved to set up RS production in Russia. text: – Did you quickly find craftsmen able to realize your ideas? Karina Melkumyan – The Russian jewellery school is very good. And most of our jewellers are all-round craftsmen able to get involved at any stage: from sketching to final arrangement. However, western craftsmen are often highly specialized.

46 Autumn 2019 47 ALROSA INTERVIEW

– So, should a western jewellery brand have a numerous staff? THE RUSSIAN JEWELLERY – Typically yes, it should. Of course, there are all-round craftsmen too who get an exclusive orders, but our school is SCHOOL IS VERY GOOD. recognized by all global experts, as well as the Russian diamond And most of our jewellers cutting method – it is a well-known fact. So, it’s good that every white has its black – I had my own production in Russia due to are all-round craftsmen the dollar rate increase. who can do anything – – There exists an opinion that it is extremely difficult to do from sketching to final own business in Russia. Are there any specific challenges you face as a founder of your own brand? arrangement of a piece of – At the beginning there were no challenges at all. But when we entered the global market and gained some foreign customers jewellery in addition to the Russian ones we found out that it was legally impossible to send jewelry abroad. In other words, subject to the law I could only export jewellery to a legal entity, but not to an individual. We had to establish a representative office in the USA to ship our products addressed to our foreign individual customers.

– How did you get foreign customers? – Mainly thanks to Instagram and articles of foreign journalists. We – How do you select them? What are the properties you look at got hits and orders. It’s good that our jewellery is a piece work and foremost? we have time to deal with delivery. I have no idea what would we do – In my first year, I was a real perfectionist, not least because of if we had a mass production. the customers who while selecting a stone wanted the first square or of D or F color only. In brief, they wanted nothing else, but the – Many potential Russian customers still prefer making big- best and the most beautiful. But sometimes this approach is just budget jewellery purchases abroad. In your opinion, what economically impractical neither for a customer, nor for me. At could change the situation to make people buy jewellery with a certain point I switched from these criteria and now the first large enough diamonds here? thing I look at is beauty of a stone. It may not be the whitest or the – Until recent times there was no diamond jewellery market clearest one, the main thing is that it should be beautiful and show as such in Russia. There was and is the largest global diamond the good effects of the light. Generally speaking, no impurities in mining company ALROSA, but it also prefers export. I think if a diamond can affect its beauty and shine. They do not interfere in ALROSA as a leading player sets a trend in building an internal an idea we want to turn into reality using a given stone. I just select market customers will gradually come to realize that it is more a beautiful stone and we use it in our work. economically reasonable to buy diamonds in Russia where they are produced. It is absolutely normal and reasonable. I know that many – Is it critical for you to work with natural diamonds only or customers go to South Africa to buy diamonds, for some reason you accept man-made ones? And how important is this for your they believe that they could save money. In fact, they do not, but the customers? stereotype has already formed. – I am all in favour of natural stones, because they do have a unique energy. Any jeweller working with natural stones realizes that it – And if we are speaking about design? Is there any interest in is a live material. No man-made diamond has energy even close the Russian brands? to such, thus I don’t work with it at all. And I have no customers – The interest is building gradually. Russian companies are willing to buy it. invited to international exhibitions, some have already gained good reputation. There are few of them, but we, although moving – However, a growing number of lab-grown diamonds slowly, are nevertheless entering the global market. manufacturers are presented at specialized jewellery exhibitions. Could we expect that a trend in use of stones made Clear Game in laboratories will grow? – What stones do you use for your collections? And how do you – Of course, plants producing synthetic diamonds are true giants rank diamonds among them? willing to invest a lot of money in gaining their market share. But – We use different stones, but all jewellery goes with diamonds, personally I think that it will not affect the ratio of customers who so I’m a regular at ALROSA. I love diamonds, as their shine prefer only natural diamonds and those who see no crime in buying and beauty always highlight both stoving enamel which I also man-made stones. It is like in the fashion industry: somebody wears use frequently and other precious and semiprecious stones. In natural silk and others are happy with polyester. Synthetic stones, any case, they show to advantage even if they are not the core for sure, could be a way out for those who cannot afford natural elements of jewellery. diamonds.

48 Autumn 2019 49 ALROSA INTERVIEW

The situation with the ratio of natural diamonds to man-made stones would be similar to the one in the fashion industry: SOMEBODY WEARS NATURAL SILK AND OTHERS ARE HAPPY WITH POLYESTER

– In other words, is jewellery made of lab-grown stones practically identical to those with natural ones? – As for me, the increase of the man-made diamonds market share could affect the design of jewellery made of natural stones. It would be more complicated shifting to the art. One large diamond used to be complemented with two side stones – and it was enough. Today, when it is difficult to separate man-made stones from natural ones, the uniqueness of the latter could be accentuated by creating an For some reason, these days adequate unique setting using which for man-made diamonds is many pieces of jewellery of economically unviable. art value immediately go – Do you work with colored diamonds? – Over recent years there is something like a colored diamonds either to museums or to safe boom: some customers wish pink ones, others – yellow. To sum up, boxes. we can speak about a trend. Here’s another issue – prices. However, when you have a classical collection with white diamonds, you I DON’T LIKE THIS TREND want some diversity, thus demand for something unusual arises – – But much of your jewellery does feature small elaborated details. AT ALL: I BELIEVE A something that would fit for a particular look or clothes. – Yes, I like such "imaginarity", I like using new and beautiful techniques, such as stoving enamel and so on. I love the jewellery PIECE OF JEWELLERY Art for Life and I wouldn`t like us to be "another new brand" blending into the – What do prices for your jewellery comprise? – What is the main thing that defines the name of a brand: hundreds of other brands on the market. REVIVES AND GAINS – Of course, if we speak about a piece of jewellery with a rare recognition of experts or customers? TRUE VALUE WHEN YOU expensive central stone, first of all, the cost depends on its price, – Both are equally important. Expert recognition only is not – Do you mean that a piece of jewellery must, first of all, while a setting may be quite simple. If it is a unique design, then enough: it is the customer who also must vote for your design. If no have value as an artwork? WEAR IT when fixing the cost of a piece we take into account both its idea one wants to buy your jewellery, it touches nobody and doesn`t meet – I am not aimed at creating something that would become history and and execution method – they always go side by side. If an idea is expectations, then, probably, your idea is not so good. a piece of art; this is the last thing I care. As I work a lot for individual cool, but a design is nothing out of the common, it holds no value. customers, I primarily want to make such things they would wear Sometimes stars are aligned and an idea is built around a rare – Do you compromise on anything to adapt to the market and wouldn’t put into a safe box and that would become a part and stone, then the price comprises all these aspects. And the name of requirements? decoration of their lives. I’m pleased to see them wearing my jewellery a craftsman or a brand is also important. – If this is about my collections, I never think of the budget at the that complements their looks and energizes them in a very special way. planning stage: beauty is the main thing. Further, at the production – Has your brand already carried some authority in the market? stage, I begin to estimate how to optimize the price without – Where is the border between an artwork which is a museum – We are well-known and regularly receive invitations to affecting the appearance significantly. Simpler stones, fewer piece and a high-class wearable jewellery? exhibitions, but I don’t think that my name is something I could details – the more details the more complicated the arrangement – For some reason, these days many pieces of jewellery of art include in the cost yet. process is. value immediately go either to museums or to safe boxes.

50 Autumn 2019 51 ALROSA INTERVIEW

They don’t live and don’t share their energy with people in their everyday lives. They come into being and then were immediately buried. What is a museum? In fact, it is a large sepulchre of previous eras showing the life of our ancestors. I don’t like this trend at all: jewellery becomes icons just when it was a part of life of a person for some time and serves as a decoration in everyday life. In the late Middle Ages, rich people bought paintings by famous artists mainly as a decoration for their routine, rather than a good investment in an expensive thing to put it in a safe box. I believe the same works for jewellery: it must be worn.

– You have Kotodetki collection half of proceeds from which you donate to help stray animals. How did the idea to take part in a charity project hit? It is believed that charity is a kind of moral duty of luxury products manufacturers. Do you agree? – I do not take our involvement in this project as a duty. We are speaking about a stray animals' foundation established by my friend that I know well. I have a dog taken from an animal shelter and a cat taken from volunteers, they both were in kennels. I love animals, my dog and cat are taken from shelters, so the idea to make jewellery I DO BELIEVE THAT EVEN proceeds from which will be donated to help stray animals seemed interesting for me. CLASSICAL JEWELLERY This jewellery is very simple featuring CAN AND MUST BE MADE a foundation logo, and my friend, who founded it, wears this collection PLAY UP IN SUCH A WAY with pleasure. AS NOT BEING Evolution of Classics so far from generally – Do you align yourself with global trends, such as rose gold recognized standards in other words, manufacturers directly interact with collectors or colored stones? and individual customers who are searching for something – Yes, I do. There are some basic trends and not to frighten the special. that are literally in the air, for example, customers – the evolution rose gold. But we used it not only because it is – Some jewellers are trying to visit all exhibitions and shows a trend, but also because it is just very beautiful. should be staged as a must to keep up with all trends and new products, others, in contrast, intentionally secure from influence of – Speaking about another current trend featuring competitors afraid of being copied. Which category do you the use of ethical gold and diamonds, how important classify yourself? is it for you? – First of all, exhibitions serve for getting customers. Probably, – Of course, it is important. We must know the origin of there are companies that intentionally monitor trends to further materials we use. It’s clear with diamonds: I’m a loyal customer set up their mass production, but it’s not our case. Of course, of ALROSA and can be sure that all diamonds are mined in – Yes, I work with classical forms and quite often, thanks I monitor new collections made by the brands I’m interested compliance with the ethical standards. However, the most to my customers. And I do believe that even they can and in, some global trends for overall understanding. However, of our gold are purchased from pawnshops. It means we use must be made play up in a new way, such as not being so far it has nothing to do with our products. As for copies made a processed material, clean it and upcycle. By the way, in the from generally recognized standards and not to frighten the from my jewellery, I decided for myself long ago: if somebody coming days I will take part in a plenary session in New York – You represented your brand at JCK Las Vegas, why was customers – the evolution should be staged. I myself made copies anything, anyway he or she will be a derivative. I will that will address these issues. It will be held as part of an art this one? something like a personal discovery: supposedly, what else can always be ahead of those who pirate, and will always create exhibition under the auspices of Christie`s. I alone will represent – Because the organizers found us, invited persistently and offered be invented in the classical style? But it is a large fresh ground, something new. Russia among 15 other members. great participation conditions. And secondly, the American market and sometimes we get really amazing pieces – a sort of classics, is very large and active; of course, it was also interesting from this but very modern. – Is there any jewellery you will never tackle? For example, – How often do you visit jewellery exhibitions? perspective. if you are asked to make a rapper chain. – I went very often up to last year when personal factors – Have you already entered the American market? – I will make with pleasure. Being a jeweller, I like all areas. changed – first as a representative of a jewellery company, – One of the largest traditional fields at the Las Vegas – Participation in the Las Vegas exhibition resulted in the I’m often asked about my favourite style. I like Gothic, art deco then as a founder of my own brand. At this stage, I was mainly exhibition is engagement rings. Huge areas are occupied with invitation to the art exhibition in New York. We will go there as and classics, but if a customer prefers rap, I will try to get used to interested in exhibitions involving sale of stones. these booths. Do you accept such orders? a brand producing pieces of jewellery. This is a commercial event, it. It’s always great to try yourself in a new field.

52 Autumn 2019 53 ALROSA evgeny Marchenko text by Ella Zakharova photo by Grigory Iftody

Coaching

STAFF SAFETY IS A KEY PRIORITY FOR ALROSA. Ruslan STAFF The company is improving its EHS Yermolovich management system, and specifically by implementing employee tutorials. ALROSA decided that the tutorials would be much more effective if taught by in-house specialists with field experience – and put together an in-house coaching team. OUR HEROES TALK ABOUT WHAT MADE THEM LEAVE THE FIELD AND SHARE PUBLIC SPEAKING LIFEHACKS. Saule Ibrayeva

54 Autumn 2019 55 ALROSA NEW GENERATION

Saule Ibrayeva

39 years old

I worked for five years as a surveyor at Mirninsky GOK, which helped me learn the ins and outs of production, and then I moved to the Yakutniproalmaz research, development and design institute. There I learned how to write reports, use literature, do research and learned a lot about the company in general. Also, I kept upskilling. Besides working, I've always had an active civic life: I sit on the Assembly of Peoples of the Republic of Sakha (Yakutia) and am a member of the Women of Russia party. And I seem to have been speaking here or there, congratulating somebody or other and organizing this or that all my life. When I was invited to join the staff of ALROSA's in-house trainers, I had my doubts at first: after all, it was a bit scary to change my life so radically. But my family endorsed that choice, saying that it was my destiny and I had to follow it. I took the plunge and I must say I've never looked back. My work is now a creative process from start to finish; we learn and create something new every QUIZ day. It was considered that coaching is a calling, and you needed oratory skills for it. No! Any person Your greatest fear? can learn these skills; where there's a will, there is a way. If you set your heart on it, you can develop – Fear for my children. virtually any skill! The most important safety rule? I wouldn't go as far as to say that it's all plain sailing for me. Trailblazing is not a walk in the – Safety begins at home. park. But we have help – from our management, people who are committed to occupational safety The most extreme situation you and health in the workplace. They are always offering help, supplying all the necessary materials and experienced in your life? statistics and providing local facilitation; after all, every field has its ins and outs. Long story short, – I went over the glass bridge every effort is being made to facilitate our progress. at the Expo exhibition in You can get through to anybody. Even if you get through to a single person, and they change their Astana. Underneath me there attitude to basic safety, this means I did the right thing in becoming a coach. was the height of eight floors, My workshoppers say that I'm very emotional and this is what draws in the audience; I make them but I was able to go all the feel the importance of the subject, engage with it. And the audience does become engaged. way to the end and overcome It is impossible to know everything, so there's no need to be ashamed if you are stumped by a the fear, what made me very question from your audience. If this is the case, I say: “Let's work it out together!” Or for example: happy! “Thank you for your question; I'll do some research and get back to you without fail.” Alternatively, Cramming or ad-libbing? I find an expert among the audience and appeal to him. After all, the collective knowledge in the room – Cramming, it's all always exceeds the one of the coach. cramming for the time being. My purpose now is to become a really good coach. I still have to read a lot of specialist literature, Emotions or intellect? and I must keep broadening my horizons. Further career growth requires a certain base, a foundation, – Both, combined. and I'm still in the process of laying it in. The best way to memorise something? – Create images, visualize. An eminent public speaker who inspires you? IT WAS CONSIDERED that coaching is a – Nina Zvereva. Do you address your audience calling, and you needed ORATORY SKILLS for informally or formally? it. No! Any person can learn these skills; – Always formally; this is the where there is a will, there is a way way I was brought up.

56 Autumn 2019 57 ALROSA NEW GENERATION

Evgeny Marchenko

32 years old

I came in at the ground level – I was an oil and gas production operator third class. Then I became a shop mechanical engineer, deputy chief mechanical engineer, chief mechanical engineer, and served as acting chief engineer. But I was missing opportunities for creativity; I felt I had stayed in the job for too long. I liked speaking in public, but my previous job offered few public speaking opportunities beyond briefings and conferences. Having been rather high on the totem pole, I had to talk to both management and staff, so I learned to find common ground with everybody. I had to find the right words whenever I talked to engineers, technicians or blue-collar workers. I didn't have oratory skills, nor do I have it now, but you live and learn. And frankly speaking, we still have a lot of ground to cover: we are good on theory, but still short on hands-on experience. You can become a good coach if you have the drive and are aware of your responsibility to the audience. This means that the tutorial you are preparing must make the message as clear as possible QUIZ to the audience. And the most pleasant aspect of my work is the feeling you get after the presentation What is your greatest fear? when you realize that you managed to get across all you wanted to say. – To give a poor speech. But I have There are exercises that help you relieve the stress, but I don't do them, I make do without no phobias. somehow. I just get in the zone – and off I go. I used to get butterflies in my stomach and start The most important safety rule? speaking faster. But just a few workshops later I no longer noticed even the most intense stare. – Comply with the safety What helps me make my seniors and veterans, who have literally just come up from the mine, procedures; they are written in sit up and take notice of me is self-introduction. Before starting the workshop, I tell them about my blood. track record. This way I demonstrate to them that I know my onions, have quite a few feathers in my The most extreme situation you cap and I'm worth listening to. experienced in your life? Today the company focuses on employee safety and health rather than production and sale of – A flight I was on turned back all of diamonds. More precisely, this has always been its priority, but these matters come into increasingly a sudden for technical reasons. sharper focus every year. This is also the raison d'е́tre of our coaching programme: to promote zero Cramming or ad-libbing? accident and injury policy. Before starting the workshop, I tell – The latter; after all, you can't them about my track record. This way answer questions without ad- I demonstrate to them that I know my libbing. Emotions or intellect? onions, have quite , a few feathers in my – Intellect. But emotions do happen, cap and I m worth listening to to be sure. The best way to memorise something? – Knowing what you're talking about. An eminent public speaker who inspires you? – Radislav Gandapas. Do you address your audience informally or formally? – I am always formal with my trainees.

58 Autumn 2019 59 ALROSA NEW GENERATION

Ruslan Yermolovich

27 years old

I rose through the ranks from electrical fitter to electrical engineer of the finishing section. My career went well, but I believe you only need a few years to learn the ropes, and then it's time to change jobs. And at some point I got to thinking about the direction I wanted to grow in. The experience gained in the field helps you teach. When you know the process inside out, know the way workers behave in different situations, teaching comes easier. We do everything from scratch now: we are often on a tight schedule and have to hit the ground running. Later, however, when your tutorial is in place and you have taught it a few times, gained confidence, you enjoy improving it and growing yourself. EHS is certainly our central area of focus. But we can also do a tutorial on preparing a presentation, on public speaking. We have a communication tutorial in the pipeline, and as part of the Profi-Club QUIZ project we are preparing to teach classes to introduce schoolchildren to the company's industrial Your greatest fear? process. I believe we will have a plethora of projects. – To waste my life. The ability to speak in public, use and combine various rhetorical devices in your speeches be The most important safety rule? well versed in what you are trying to teach your audience, as well as self-control, confidence and the – Take care. skill of making complex things easy to understand – these are the qualities a coach needs. I have all of The most extreme situation you them, but I keep honing them with each of my talks. experienced in your life? I have no secret remedy for stress – at least, I haven't found one yet. I just take the floor and start – A section of metal fencing dropped talking; now you're in the game, and there is no way out: my audience is right in front of me, and the from a high altitude and barely clock is ticking... My anxiety dissipates as I keep talking, and it's all downhill from there. missed me. For a mixed-age audience, Kolb's method is a very good approach, with everyone sharing their Cramming or ad-libbing? experience – after all, some attendees have it in abundance. Then we put our heads together to review – Fifty-fifty. that experience, formulate theoretical conclusions and put them into practice. Older people find this Emotions or intellect? training format appealing. – Intellect. In order to capture and hold the attention of the audience, I use eye contact, speech modulation The best way to memorise something? and the Socratic method: I ask questions, prompting the audience to do the same, and receive – Use your own words. responses. I also combine lecturing with group activities – this goes down really well. Is there an eminent public speaker who inspires you? – Brian Tracy. Do you address your audience informally or formally? – Mostly formally.

To get out of the rut that makes it impossible to notice factors of importance for safe working - this is our task. Explain the likely consequences of non-compliance, go once again over the safety procedures, provoke an emotional response, cause a stir - this is our job

60 Autumn 2019 61 ALROSA CONTRIBUTION

Sprawling over a huge forested area outside the town of Mirny is a park called Living Diamonds of Yakutia. It is home to yaks, musk oxen, bisons, deer, horses and other Siberian animals, as well as wildlife from southern parts that one does not expect to see here. People come to visit the wildlife sanctuary all the year round, often with children, to take walks, to watch the animals and even to feed them. ALROSA allocates funds annually for the upkeep of Living Diamonds, thus contributing to the preservation of rare species in the region. LIVING DIAMONDS

text by Maria Buzunova photo by Grigory Iftody OF YAKUTIA

How it all began zoo in Yakutia. They were followed by The first inmates moved into the park in bisons, deer, moose, Yakut horses and even 2009. But preparations to receive animals peacocks. started long before that. In 2000, the Supervisory Board of ALROSA with the Feed, love and protect involvement of Mikhail Nikolayev, the The park is a long corridor bordered by first president of Yakutia, resolved to set fenced-in enclosures. Each of them has MILLION up a nature park; an agreement was then a lot of space and houses a number of signed between the republican wildlife specimens. Newborns are kept indoors and ROUBLES conservation ministry and ALROSA; and out of sight until they are strong enough 4 then construction and landscaping began. to avoid stressing them out. For the park ALROSA will provide for the In 2001, 13 enigmatic animals – musk employees, the animals take precedence – oxen, which are among the earliest the park exists to serve them, while the upkeep of Living Diamonds inhabitants of Earth, were brought here visitors come and go. from the Taymyr Peninsula. They were – We provide an environment for of Yakutia in 2019 delivered to the village of Taas-Yuryakh, organized tourism and recreation. Each to the breeding farm of Sergey Simonov, year we are visited by no fewer than 4-5 who is the current manager of the Living thousand people, over half of whom are Diamonds park. children. They come from all over: from For eight years Taas-Yuryakh hosted Mirny, Udachny, Aikhal, Chernyshevsky, the republican musk oxen domestication Almazny, Lensk and elsewhere. We and breeding programme. It was 11 of have 20 visitors per day and even more those unique wildlife specimens that at weekends, says Sergey Simonov, the became the first inhabitants of Living park manager. – Many people have their Diamonds in 2009. That was the starting favourites in the wildlife sanctuary. Adults point of the large animal family of the are more interested in bears. And children forest park. Hard on their heels came two head straight for the rabbits; they feed Manchurian wapitis from the Orto Doidu them cabbage and carrots that they bring

62 Autumn 2019 63 ALROSA CONTRIBUTION with them or buy from us. All guests mind district. Scared by the fire, the little bear New challenges their Ps and Qs. They do not frighten the entered the wildlife sanctuary and put In 2018, the park management came up animals, feed them vegetables only; all itself in human hands. The bear cub against a major problem. After two public sweet things are verboten. was saved, nurtured back to health and hearings at Mirny, it was decided to find christened Umka. a new home for the inmates of Living Guests from Canada All offspring of the park's inmates are Diamonds of Yakutia. This is because In 2006, the first shipment of 30 bisons distributed between wildlife sanctuaries one of the local oil and gas producers arrived in Yakutia from Elk Island National in Yakutia or elsewhere in Russia. Living won the struggle for pristine taiga with Park in Canada as part of the republican Diamonds also plans to develop a special clean streams and lakes. And the park as Environmental Protection programme. The environmental programme to prepare a cultural site is to be relocated beyond programme to restore the ancient habitat of the animals for life in the wild. Many of the licensed acreage. The final decision on bison in Yakutia with support from Canada the inmates are not unlike pets now; they the park's relocation has been postponed did not stop there: another 30 specimens cannot fend for themselves; grazing is all for the moment. But the staff of Living arrived here in 2011. The Russian province they can do. Diamonds assures us that if the relocation now has some two hundred of them, does go through, then the animals will be including those born here. These animals Healthy eating offered the same living standards and their are now living in the nature park of The park's management keeps searching charges will not be moved to a smaller Sinyaya, in the nurseries of Tympynay and for the best diet for their charges. The feed space. Ust-Buotama, the Orto Doidu zoo and the composition changes with season; the nature park Living Diamonds of Yakutia. A objective is to make it balanced. ALROSA bison couple was given to Living Diamonds helps pay for the animals' feed. in 2014. According to environmentalists, Large cloven-footed animals need some the animals may produce their first 50–60 tonnes of hay per year. Yaks and offspring next year. wapitis, for example, need 6 and 4 kg of hay per day respectively. Approximately Save Umka 480 thousand roubles are spent on hay Many animals came to the park from zoos, on the average per year. Some feeds are farms and private breeders. But there were laid in by the park in-house. For example, situations where the park was the only reindeer moss, which deer love so much. hope of survival for animals. For example, The wildlife sanctuary employees collect in 2011, park employees found a two- it in the forest, clean and dry it, and then month-old bear cub during a walkaround. feed it to the animals all winter long. And It was emaciated and barely able to move. in summer the herbivorous are put out Its mother must have perished in the forest to pasture – they graze over an area of fire that was raging in the neighbouring 300 hectares.

Manager of the Living Diamonds of Yakutia park Sergey Simonov

The park was set up for a number of reasons. 32,105.22 The most important one: to preserve the natural ecosystems. Judging by the fact that our animals breed HECTARES – on a regular basis, the park is doing a great job here. For example, the spring of 2018 witnessed ten peacock chicks, IS THE AREA OF THE NATURE a wapiti calf and 15 baby rabbits see the light of day. Last RESERVE THAT IS HOME TO September there was born a yak calf; this summer, Yakut horses had two foals. This year saw yet another newborn – THE LIVING DIAMONDS OF a chital foal. To be sure, they are comfy in the park with its large spaces, lots of food, yet this is not their natural habitat. YAKUTIA PARK In the meantime, the animals have come to trust us, got used to it and produced offspring. It is the 11th km of the Mirny – Since we opened, we have been visited by schoolchildren and students – to study nature and wildlife. Many of them Chernyshevsk road write their research papers based on our resources. Some of these win at republican and federal tournaments in Russia. It's a good thing that modern children can see life in the wild at least here; moreover, they develop an interest in it. They forget their gadgets seeing the beauty of the environment, its fragility, and learn to take care of it.

64 Autumn 2019 65 ALROSA CONTRIBUTION Andrey Pismenny, Severalmaz CEO Photo: Alexander Antonov, Artem Kozhevnikov Antonov, Alexander Photo:

Our dancefloor debut Severalmaz did not sit out the most beautiful competitions in grace, suppleness and a sense of rhythm. This year Arkhangelsk hosted two ballroom competitions under the umbrella of "Belomorskie Ritmy". "Belomorskie Ritmy" is a major state championship for the Governor's Cup, held for the 28th time this year. This year it also included a State Open Championship for Novices. The championship was entered by a total of 1,500 contestants aged 5 to 55 from Arkhangelsk, Vologda, Leningrad, THE WAY OF CHAMPIONS: Murmansk and Yaroslavl regions, the Republic of Karelia, Komi Republic, Nenets Autonomous Okrug, as well as Moscow and Saint Petersburg. This is the first time that Severalmaz has sponsored the event, supporting novice dancers and professionals alike. Svetlana Antipina, head of PR at Severalmaz: THE KICK-OFF – Sports are one of our areas of focus in social projects. By expanding our involvement with the sports scene in the region, we take our cue from our parent company, ALROSA, which holds the Cheer dance festival on a regular basis. ALROSA's subsidiary Severalmaz organizes ice hockey tournaments for children Unfortunately, we have recently been witnessing a flight in Arkhangelsk, inspiring beginner players to bigger wins. This is the first year that of young people from our host region, including sporting the diamond-mining company has also sponsored another event that Arkhangelsk talent. Large companies such as Severalmaz must support residents love: a ballroom dance competition. Severalmaz secured the support of big the younger generation and give them opportunities to do names in the field and intends to continue promoting sports in its host region. sports and to develop. The dance battle generated a lot of excitement among both the contestants and the audience, who filled Arkhangelsk's Nord Arena to the roof: many people Endorsement by to the Promotion of National Ice Hockey (Severodvinsk), ULK (Bereznik settlement, had to sit in the aisles, and you couldn't find a spot in Olympic champion in consideration of the event. The Ustyansky district). As always, Severalmaz the local car park unless you arrived well in advance. A In 2017, in its 25th tournament has since become a tradition assumed all the organizational costs, pleasant surprise was prepared by Severalmaz, which had year, Severalmaz held and is held once a year. including the purchase of the cups and 3-2, but their junior rivals succeeded in invited to the tournament the world's prominent dance for the first time a – Such events put the spotlight on sports medals, referee fees and meals for the turning the tables on them and won 4-3. couple of Yelizaveta Lykhina and Semyon Khrzhanovsky, hockey tournament and healthy lifestyle, as well as promoting contestants. And the hockey players Severalmaz keeps close tabs on winners of world championships and medallists of Russian among 2005–2006 born team spirit and commitment, said Andrey reciprocated by playing like true pros, Kaskad-2005, helping the team in moving tournaments. children's teams in Arkhangelsk region. Pismenny. – We can see that kids show delighting the audience – which included forward. The first successes are already – We only expected them to do demo routines, but to The chosen venue was the Sports Palace increasing interest in hockey; there are not only mums and dads but also local ice visible. E.g., a year ago the kids took our surprise they decided to enter the tournament, – says of Trade Unions, the city's flagship sports serious results. Being a good corporate hockey enthusiasts – by elegant plays and first place in the Golden Ring cup in the Svetlana Antipina. – We asked the other dancers whether facility, seating 2,300. The competition citizen, we are committed to promoting beautiful goals. The suspense and drama Northwest district, and some players they were against such serious competition – and heard hit the spot: Vladislav Tretyak, president culture and sports in the region. peaked during the final between two changed affiliation, moving to other clubs: not a single objection. Naturally enough, Lykhina and of the Russian Ice Hockey Federation, This year the tournament was joined by Arkhangelsk teams. With a few minutes SKA-Gazprombank (St Petersburg), Severstal Khrzhanovsky ended first in both the European and awarded Andrey Pismenny, Severalmaz four teams: Kaskad-2005 and Kaskad-2006 remaining until the end of the third (Cherepovets), Dmitrov (Moscow Oblast) and Latin American categories of the Open Championship of CEO, a Certificate of Merit for Contribution (both from Arkhangelsk), Belomorets period, the Kaskad-2005 kids were leading Toros (Neftekamsk). Arkhangelsk region.

66 Autumn 2019 67 ALROSA COLLECTION

Chanel jewelry division has once again delivered a Russia-themed collection, Le Paris russe de Chanel, presenting it in the Grand Palais of Paris. Ears of wheat, double-headed eagles, jewel patterns reminiscent of the platbands, and necklaces that could be worn as a kokoshnik diadem – every single Tiara and brooch COCO CHANEL from the Blé item of this collection has a Maria set direct or indirect relation to the history of Russia and RUSSIAN STORIES Coco Chanel.

text by Karina Melkumyan

Blé Maria

This, of course, is not the first Russia- themed Chanel jewelry story. Exactly two years ago, Patrice Legero, the head of Chanel Fine Jewelry, released the Blé Maria includes a tiara, a trans- Inspiration Russe collection of jewelry former necklace and a brooch. Just specifically for the Russian market. The like the embroidery of the Grand collection was divided into 4 sets: Dimitri, Duchesses, they show a delicate com- Igor, Serguei and Vaslav. Each of the sets "M y bination of different colors provided by was associated with the name of a man g r a n d the pink spinel, green tourmalines and who played a significant role in Coco d u c h e s s e s " spessartines. The brooch notably re- Chanel’s life and influenced her views: sembles an order, and there is a good Grand Duke Dimitri Pavlovich Romanov, reason for that. Chanel loved this form the cousin of Nicholas II; composer Igor very much, quite possibly because Stravinsky; impresario and creator of it reminded her of Dmitry Pavlovich “Russian Seasons” Sergei Diaghilev; and Romanov, a graduate of the Officer the famous dancer Vaslav Nijinsky. Cavalry School and a holder of seven The connections, that the new collection different orders, including a foreign has with Russia, are more subtle and not one. One way or another, the jewelry so literal. Yet, there is nothing accidental orders appeared in the Chanel collec- about it, and every detail refers to a small tions quite frequently and were her story related to the life of Gabrielle Coco usual companions during her evening Chanel. ceremonial appearances.

68 Autumn 2019 69 ALROSA COLLECTION

A new take on sarafan The Russian influence of the early 1920s was reflected not only in the decorations of the Chanel collections, but also in their Sautoir, earrings and bracelet from the Medaille shapes and silhouettes. An established minimalistic Chanel Solaire set style that had been built on the nothing in excess principle, was expanded by belted wide blouses that resembled Russian shirts, sundresses, gymnastyorka-like garments, long frocks and overcoats with lush fur collars and cuffs. It was at that time that Chanel met and actively collaborated with the Russian creative intellectuals: she attended all Diaghilev's performances and later created the costumes for several of them: The Rite of Spring, Le Train Bleu and Apollo. She befriended Diaghilev and provided financial support to him, Lе́on Bakst and Igor Stravinsky. The family of the latter even lived in the Chanel’s Bel Respiro villa for some time. And, Embroidery á la russe finally, Chanel enlisted several fashion models of Russian Given Coco Chanel’s interest in Russian origin to work at her shows. Among them were the former culture, it may seem strange that she never maid of honor of the Empress Alexandra Feodorovna and the visited Russia. In the 1920s, she created the niece of Igor Stravinsky. costumes for several Diaghilev ballets, but her admiration went beyond that: Chanel enjoyed Russian music and applied arts, and was a big reader of Dostoevsky. In the same 1920s, Chanel’s collections were complimented by the works of Russian noblewomen who had to emigrate to Paris and earn their bread there. Later, she said about them: “It was the Russians who showed the women that working was not shameful.” The Grand Duchesses, whose craft inspired Chanel to create a new direction, The overall theme of orders and mili- have thus also inspired the Blе́ Maria set. tary uniforms is a visible influence on The set was named after Grand Duchess the Medaille Solaire set of yellow and Maria Pavlovna, the sister of Grand Duke A i g l e white gold, diamonds and pearls. The Dmitry Pavlovich Romanov. Chanel and C a m b o n set included a transformer necklace the Duke had a long history of relation- a n d A i g l e with removable brooches in the form of ships, first romantic and then friendly, P r o t e c t e u r lapel medals that were reminiscent of which lasted until the death of the Grand ceremonial aiguillettes or a sautoir, and Duke in 1941. After losing all her privi­ Chanel’s favorite stud earrings of the leges, Maria Pavlovna arrived in Paris, same octagonal shape – like a central Several sets of the new collection where, with the assistance of Coco Chanel mirror in her apartment on Cambon follow the theme of the Russian herself, she opened the Kitmir embroider- Street – and with long pendants of costume as well: Roubachka, ing fashion atelier and began to supply diamonds and pearls. Sarafane, multicolor Folklore and her fashion colleague with the unique old Other sets of the same family, Aigle Foulard, reminiscent of the bright Russian designs. Thanks to Diaghilev’s Sea- Cambon and Aigle Protecteur, refer to P r e c i o u s Pavlovsky Posad shawl. One of the sons, Paris was still very impressed by all the main symbol of the Russian crown. f o l k l o r e most impressive and expensive things Russian, so the artful multi-colored Aigle Cambon directly copies the decor (EU 4.8 million) items in the entire patterns а́ la russe appearing on Chanel’s of the famous octagonal mirror decorat- collection is the Sarafane necklace strict and concise coats and dresses could ed with a double-headed eagle looking with a central diamond of 10.18 not go unnoticed. By 1923, every newspa- west and east. In the jewelry collection, carats, surrounded by delicate white per and magazine, including the French the same eagle goes together with an gold lace, 10 cultured pearls and Vogue, was writing about this unique and octagonal rutilated quartz and diamond more than 1,300 small diamonds. It unexpected collaboration. camellias (Chanel’s favorite flower and was presented at the Grand Palais one of the most recognized symbols of against the background of a pile of

Cuff from the Aigle Cambon the House of Chanel). hay. However, the necklace changed set, necklace from the Aigle Necklace, earrings and ring from its environment rather swiftly, as it Protecteur set the Sarafane set was bought immediately.

70 Autumn 2019 71 ALROSA

A symbol of a distant land And finally, another episode of Coco Chanel’s life, this time associated with the Blе́ Gabrielle set. Born on August 19, during the harvest season, Gabrielle Chanel was very fond of the simple form of a wheat ear and considered it to be one of her personal good luck charms. Knowing this, her fashion models brought Chanel several bouquets of wheat ears upon their return to Paris after the first Chanel show in Moscow (Chanel herself could not attend it) in 1967. She placed Ring, earrings them next to a bronze sheaf of wheat, and bracelet from the Blé which she had commissioned from Robert Gabrielle set Goossens and which had been adorning her house ever since. This bronze sheaf was another item that reminded Chanel of her Russian friends, the Grand Duchesses and a distant land where she herself had never been. Le Paris russe de Chanel is divided into 11 sets and includes 69 jewelry items (with 10 more new pieces to come), each of them in a single copy. The world premiere of the collection will be held in November 2019 in Moscow.

Necklace and ring from the Roubachka set Another Sarafane item is a transformer necklace with camellias and diamond leaves woven into its lace ligature. It can also be worn as a kokoshnik diadem. The theme of the precious neck adornment was translated into the massive and complex The wheat ear has been a source of necklace of the Roubachka set. inspiration for Chanel jewelers for Its shape and decor clearly a number of occasions. Last year, indicate the kinship with the 43 new precious accessories with traditional Russian kokoshnik, diamonds and emeralds reinforced carved platbands, and lace B l е ́ the Les Blés de Chanel collection. elements à la russe. The whole G a b r i e l l e The diamond-spiked wheat ears set is created from yellow gold, of the Blé Gabrielle set from Le platinum, yellow and colorless Paris russe de Chanel are the main diamonds, and pearls. Other decorative element for the bracelet, set items include a massive the necklace, the earrings and the bracelet, earrings, two rings and rings in white and yellow gold. a necklace with a central piece resembling folded butterfly wings. Materials provided by Chanel Press Service

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During the Renaissance and the Baroque, the brooch already was an independent jewelry piece decorating the costumes of many citizens. As we can see from the portraits of that time, men adorned themselves just as passionately as the A brooch is one of the oldest jewelry items known to mankind, and for a long time it was also one of the most ladies, and brooches played an important popular types of jewelry in the world. First, it was never part in their presentation, emphasizing the affiliated with a specific gender and was worn by both men financial and social status of the owner. and women. Second, while worn almost at eye level, For example, the personal collection of a brooch could demonstrate the jewels at their finest. Henry VIII of England contained more than 320 brooches. Judging by the ceremonial AGAINST portraits, his French namesake, Henry III, also liked this piece of jewellery. THE HEART

A brooch’s predecessor was called fibula. It first appeared in the Bronze Age and had a very simplistic design. Fibulae were used to hold together different parts of clothing and became very prominent with Greeks and Romans who wore it with chitons and Henry III, king of France Women's portrait, 1656, Dutch artist Isaac Luttichuys togas. Vikings also had their own version of fibula distinguished by a disk-shaped form, emphasised patterns and massive size. The size of a Viking fibula TREASURES Most late Renaissance and Baroque brooches the brooches resembled crosses, others were of allowed it to carry a heavy load of winter garments. had a symmetrical and complex shape. In the a neat oval shape, but they all fitted the same But it was only in the times of Byzantine Empire OF INDIA 17th century, this complexity took a form of universal formula: a central jewel accompanied when brooches became jewelry items. Made of precious pretentiousness and redundancy. One of the main by a sparkling entourage and an enamel coating metals, jewels and enamel, they served as a clothing reasons for that was the influx of jewels into on the back of the brooch. The dе́cor underwent decoration and a status signifier. The early Christians the European market. Geographical discoveries quite a transformation. While the 15th century Eagle-shaped brooches made embraced the tradition of decorating themselves with allowed to expand the range of jewelry that was dominated by the traditions of the Ancient of bronze and coloured glass, precious brooches and complemented them with started to feature pearls, Colombian emeralds, Greece, later periods saw the introduction of the Visigothic kingdom religious patterns. In the 14th century the advancement Brazilian topazes, Persian turquoise, Afghan lapis animal, plant and bird imagery. The development of tailoring made fibulae obsolete by replacing them lazuli and, of course, Indian rubies and diamonds. of navigation brought both real and mythical with a thread and a needle. From this point, fibulae and The flow of Indian diamonds in Europe was sea inhabitants to the table. The sea theme all its derivates became a jewelry items only, known controlled by Jean-Baptiste Tavernier, a merchant was especially relevant in the North European today as brooches. and a jewel hunter. countries. The jewelry of that period for the most time featured a single large jewel, placed right in the middle and surrounded by a circle dance of metal A lace and a scattering of smaller jewels. Some of 74 Autumn 2019 75 ALROSA STORY

Peacock brooch, THE BEASTS OF JEWEL 1924, Cartier. Sold at Sotheby's Magnificent Jewels & Jadeite Flora and fauna are one of the first and more obvious in 2013 for $871,838 jewelry themes. With the 19th century came the golden age of these designs, as the jewelers’ skills finally allowed them to work on complex forms and partake in compe- titions among themselves. By the 19th century, floral Bird brooch with a pendant, SEVIGNE’S LEGACY motifs were already considered classical, and yet animal yellow diamonds, Van imagery still provided both an aesthetic and professional Cleef&Arpels challenge. One of the fathers of the animalistic genre is No tale about the history of the brooch Panther brooch made the House of Boucheron founded in France in 1858. The would be complete without mentioning for Wallis Simpson, Boucheron House debuted with a serpent-shaped jewelry collection 1947, Cartier the name of the Marquise de Sе́vignе́, who commissioned by the favorite of Napoleon III, Coun­ lived at the court of Louis XIV of France. tess de Castellon. After that, the House of Boucheron In addition to writing the letters that are continued to regularly expand its collections with new highly regarded as the most famous epis- animalistic shapes, setting a new trend. By the end of the tolary of the French literature, she went 19th century, European craftsmen started to experiment down in history as the foundress of the with insect shapes, and the assortment of jewelry besti- new brooch fashion. These new brooches ary became even wider. Precious dragonflies, butterflies had the form of a diamond-studded bow and beetles were often created following the naturalistic with pendants. Precious bows worn on insect designs, and with time they looked more and more the body of a dress also had a symbolic realistic. meaning. When a bow was pinned right At the beginning of the 20th century, many brands Feather brooch, Van Cleef&Arpels against the heart, it indicated that the lady were already offering their versions of animal brooches, wearing it was in love. And when it was but it’s only in 1914 when Boucheron finally found a attached to a band, giving an impression of Pin brooch, Boucheron serious competitor. With no previous experience in ani- One of the most famous bird brooches was

a pendant, it showed her interest towards malistic designs, the House of Cartier introduced a wrist Alamy / TASS also made by Cartier craftsmen. The owner adultery. By the end of the 18th century, watch decorated with a panther that would later become jewelers had lost interest in brooches, but the symbol of the House. It is the Cartier workshops that of this flamingo brooch was no one but Wallis in 1858 the small jewelry item already had would create one of the most famous animal brooches in Simpson. At that time, she already was the its triumphal return when the House of the world. In 1947, following the commission of Wallis Brooch, wife of the Duke of Windsor. A bird's neck Garrard, the supplier of the British royal Boucheron Simpson, Jeanne Toussaint, Cartier's Artistic Director of court, crafted three diamond-studded Jewellery, created a panther of diamonds and onyx sit- strewn with diamonds, a tail sparkling with brooches for its patroness, Queen Victoria. ting on a large sapphire. rubies, sapphires and emeralds, a beak deco- Each of them was shaped as a delicately Birds and feathers, being one of the most popular Bow brooches, twisted bow. All three brooches were animalistic themes, had a significant influence on the Flamingo brooch, made by Cartier for Wallis rated with citrine – this striking brooch was БрошиXIX century в форме Simpson inherited by a long line of queens, with the банта, XIX век brooches. The first items with feathers appeared as early sold at Sotheby's auction for EU 1,721,250 last one of them being Queen Elizabeth II, as in the 17th century, while the birds diversified the in 2010. a very passionate brooch collector herself. jewelry assortment of the first half of the 20th century. Three years later, another outstanding bird brooch was sold at Sotheby's Magnificent

At the beginning of the 20th century, came the Jewels for $ 10.5 million. This time it was Edwardian era, and many jewelry items adopted the the Van Cleef & Arpels phoenix studded shape of a bow. It was a time for elegancy and jew- with eme­ralds and diamonds with a yellow elries’ silhouettes became more natural and plastic. diamond pendant in its beak and a blue sap- With their diamond ends bending, as if from a gust of phire at the base of its tail. The diamond had wind, and complex embroidery-like patterns cover- once been owned by the Polish singer Ganna ing their body, bows became a lot less symmetric in Walska. Despite being a part of the phoenix, it comparison with the 17th century. And when Tiffany could be unfastened and worn independently & Co and Chanel jewelry giants offered their versions like a pendant, while the rest of the bird could easily be disassembled into the earrings. Mikimoto brooch, white of the bow, this item secured its place among the gold, pearls, other jewelry classics for good. Such transformer products were always Van diamonds Wallis Simpson Cleef & Arpels’ forte. and Duke of Windsor

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Elizabeth II wearing the famous When Elizabeth II follows every rule of bow brooch of the British house brooch etiquette and wears only one Garrard, made in the second half of the XIX century for Queen of them and strictly on the left side Victoria of the shoulder, the same does not Hollywood movie apply for the world of catwalks. There, star of the 1930s Carole Lombard, Brooches – Maltese an assortment of up to five brooches dress with dress crosses, Verdura clips Lip brooch, 1949, based on a Salvador Dali’s can migrate from jackets and dresses sketch to hats and bags only to come back later to jacket’s lapels again. However, there is nothing new about it: Coco Chanel herself attached brooches to her headdresses, and many Hollywood The movie stars of the 1930s and 40s Images/TASS Bobo/PIXSELL/PA FA introduced a fashion for wearing twin Brooch in the form of three curved feathers, a gift from the Duke of Windsor for Wallis stars of the 1930s and 1940s wore many Simpson, was bought in 1987 by Elizabeth Taylor brooches, known as dress clips, which brooches on the same jacket could be attached either symmetrically or dress. or randomly to the neckline of the dress, shoulder straps, headgear, and to the ROYAL GIFTS back of the low dress. In other words, At the Prada Fall/Winter 2012 practically everywhere. Interestingly Menswear Show, many models Traditionally, the representatives of the enough, the dress clips have reemerged wore coats and jackets with pin British Royal House have always been brooches. Among them were Gary MALTESE CROSS AND in the past few years. For example, Olivia among the main connoisseurs of jewelry Palermo, the first woman of fashion of in general and brooches in particular. Oldman, Adrien Brody, Willem DALI’S LIPS Edward VIII abdicated the throne to marry Milan, constantly wears them on jackets, Dafoe and Tim Roth. Prada once Wallis Simpson, who would never become Chinese actress Wan Qian dresses and even thick sweaters. And a part of the English court. But thanks again proved itself to be one at Cannes film festival Thanks to Coco Chanel, a brooch became to her husband, she got one of the most step ahead, as now men start to ZUMAPRESS/TASS the influence of her style reaches far an object of fashion. She knew how to wear Olivia Palermo, dress with dress clips outstanding jewelry collections of the last beyond the borders of Italy. wear brooches more frequently. jewelry like no other, attaching brooches century. One of them, an elegant diamond to jackets, vests, berets, and never limiting a brooch in the shape of ruby lips with brooch in the form of three feathers (a But when comparing it with the herself in terms of their quantity and size. teeth-like pearls peering out of it made in symbol of the Prince of Wales), she received Vikings and King Henry VIII, often One of the symbols of her jewelry collec- 1949, based on a Salvador Dali’s sketch. even before the wedding. It was rumored bedecked with jewelry, it becomes tions was the Maltese cross, the massive The most extravagant jewelry in the that Elizabeth Taylor, also an owner of an colorful jewels and the radiance of which United States was created by Paul Flato. impressive jewelry collection, craved this evident that we are quite far from were reminiscent of the famous mosaic His brooches introduced many different jewelry for a very long time. And in 1987, a revolution. Men's brooches, of Ravenna churches. Wide bracelets with concepts and shapes, including a pair of after the death of Wallis Simpson, the 2019 (farfetch.com, crosses and cruciform brooches were made high boots studded with diamonds actress bought it at Sotheby's auction. press-service for Chanel by the young jeweler Fulco di and rubies, a pair of golden hands The family jewelry of the inhabitants materials)

Verdura, a Sicilian aristocrat who squan- with rings and bracelets cut off by Charles Sykes / Invision / AP / TASS of Buckingham Palace passed along the dered his fortune and became a jeweler. the wrists, a large heart covered with female line from generation to generation, Queen also got Prince Albert’s sapphire The collaboration between Chanel and Ver- symbols and inscriptions. Who wore all so they always had something to show off brooches, which he had given to Queen dura began in 1925 and lasted for almost of that? Mostly, they were movie stars – at the receptions and the official meetings. Victoria before her wedding, and to 10 years. In 1934 he left for New York and from Greta Garbo and Joan Crawford to In 1953, thanks to the coronation of Empress Maria Feodorovna, who had had Benedict founded his own brand, which still exists Marlene Dietrich – and wealthy ladies, for Cumberbatch at Elizabeth II, many jewelry pieces found to sell it after fleeing revolutionary Russia. to this day. By the way, actor Benedict Cum- example, the heiress of millions Gloria the last Met Gala, their way to her box. In addition to the And this is nothing but a glimpse into berbatch appeared at the last Met Gala ball Vanderbilt. Verdura brooch Garrard bows, the Queen’s collection the jewelry collection of one of the most wearing the Verdura buttonhole brooch. includes the Heart Brooch, Cullinan III, famous brooch enthusiasts in the world. The period between the late 1930s and IV, VI and VIII. All the pieces were created Rami Malek at the late 1940s was a time of experimenta- with the use of the fragments of the Met gala tion with brooches, as many famous surre- legendary Cullinan diamond found in alist artists participated in their creation. South Africa in 1905. The initial weight Denis Makarenko / Shutterstock.com / Makarenko Denis One of the most notorious items was of this diamond was 3,106.75 carat. The Evan Agostini / Invision / AP / TASS

78 Autumn 2019 79 ALROSA Chopard Haute Joaillerie TRENDS earrings and ring, titanium, blue and pink sapphires, tsavorites, opals, beads of amethyst and spinel The red carpets of the film festivals can be very indicative of running IN BETTER jewelry trends. This year, with the Golden Globe in In Cannes, Bvlgari jewelry was January, the Oscars, the Julianne Moore also represented by C a r l a Cannes Film Festival and appeared at Met Gala in Bruni. She wore High sophisticated titanium Chopard Jewelry Cinemagia earrings in the Met Gala costume Haute Joaillerie earrings white gold with diamonds and COLOR ball behind us, it is safe with blue and pink sapphires, 22 blue cushion-cut tanzanites, to say that colored jewels tsavorites, opals, as well as Serpenti bracelets, one of amethyst and spinel beads. which was adorned with a large stand out as a strong A ring from the same collection sapphire and several emeralds, Tindependent trend. And showing blue and purple hues as well as a Serpenti Seduttori not only that, but this year flickered on her hand. ring in gold with diamond pavé. Marion the jewels of the movie However, massive colored Czech model E v a Cotillard arrived stars adopt the widest diamonds – like the ones Herzigova traditionally at Cannes adorned with color range possible: from that Lady Gaga wore at arrived in Chopard jewelry. This exquisite Chopard Haute time she chose Haute Joaillerie Joaillerie earrings in the various shades of blue, the Oscars – are rather earrings in 18-carat white titanium with 21.36-carat green and red to pure infrequent on the red gold and titanium with 23.81 yellow-orange sapphires. The carat sapphires, diamonds and earrings were complemented yellow. carpet. More often than emeralds. by a ring from the same not, we see sapphires, collection, only this one was made in yellow gold From Yellow to Cognac emeralds and topazes. with a ruby, a tiger's eye and Lady Gaga, after receiving And colorless diamonds diamonds. the Oscar for Best Original channel their brilliance Song, caused a sensation at to frame these large the ceremony. The credit for jewels and emphasize the stunning appearance was richness of their color. largely due to the Tiffany & Co necklace with 128.54-carat Shades of Blue 360 canary-yellow diamond One of the most impressive carats central piece. The cost of the sapphire jewelry pieces of 128.54 necklace reaches 30 million Met Gala was worn by no carats dollars. Found in South Africa other than Jennifer Lopez. 21.36 in 1877, the central piece Her platinum Purple Dragon Lionel/ABACA/TASS Hahn carats diamond appeared publicly Necklace from the Harry

Andrea Raffinlast / Shutterstock.com time on the neck of Audrey Winston collection and its Hepburn during an ad for central 65.32-carat purple Breakfast at Tiffany's. In 2012, sapphire drew quite a few commemorating the 175th eyes. The cushion-cut sapphire anniversary of the company, was embraced by a circle Charlize Theron the necklace was redesigned of marquise and pear-cut appeared at the Oscars in only to appear 7 years later diamonds. In addition, Jennifer Bvlgari's high jewelry, containing a total of more than 360 carats at the Oscars 2019 ceremony. Lopez complemented her look of diamonds, sapphires and Only this time the unique with vintage 1972 diamond emeralds. Among them, two octagonal 25.58-carat sapphires yellow stone was complimented earrings, two bracelets and and six baguette emeralds by more than 480 colorless a pair of rings made in platinum embedded in massive earrings. diamonds. with diamonds. As it was The actress's neck was embraced by two diamond necklaces of later revealed, the total value classic round shape from the of Harry Winston set was Serpenti collection. At the last Golden Globe The necklace de Grisogono American actress Dakota 8.8 million. ceremony, Anne High Jewellery collection with Fanning showcased a Chopard Red Carpet necklace Hathaway demonstrated a cognac central diamond whole set of yellow and colorless and ring, yellow and colorless earrings with diamonds of two complemented the look of diamonds during one of her diamonds different shades, including the the French model C i n d y appearances at the Cannes cognac brown one. The jewelry Bruna upon her arrival Film Festival. It consisted of items were made by Lorraine at the Cannes Film Festival. a necklace and earrings from the Schwartz, an ambitious American The color of the stone was Chopard Red Carpet collection, brand, which celebrated this year emphasized by the colorless and as well as a ring and jewelry its 30th anniversary. brown diamonds surrounding it, watches from Chopard Haute giving a soft warm glow. Joaillerie. 65.32 carats

80 Autumn 2019 81 ALROSA TRENDS Chopard Haute Joaillerie Collection earrings, titanium, emeralds, diamonds Rubies The appearance of celebrity One of the oldest jewelry bloggers wearing the jewelry As a partner of the Cannes Film sets presented this year at of the younger jewelry brands Festival, Chopard House of Chopard Red rapidly becomes a new trend on jewelry and watches traditionally The Chopard Haute Joaillerie the Met Gala costume ball Carpet Collection the red carpet. A recent example invites the most beautiful models Collection titanium earrings with was a platinum bracelet with earrings and ring, rubies, diamonds of this cooperation would be the and actresses to demonstrate 34.88-carat pear-cut emeralds rubies and diamonds that had jewelry of the Brazilian brand its works. This time, earrings and 21.43-carat cushion-cut Flavia Vetorasso adorning from the Red Carpet collection diamonds danced in the ears of been created by the jewelers Helena Bordon with diamonds and emeralds, Amber Valletta of the Roman house Bvlgari during her visit to Cannes. As the largest of which weigh at Met Gala. The jewelry back in 1934. Together with a result, the community saw a 30.43 carats, complement the ensemble was complemented by parade of enthusiastic reviews look of the Brazilian model a ring with emeralds made of 18 two other bracelets, they were from jewelry critics. Adriana Lima. carat gold. showcased by the famous model Naomi Campbell. One of these bracelets came Natalia from High Jewelry collection Vodianova also favored and was made in white gold a combination of a red dress and ruby jewelry. Her choice was with pearl details, 40 round Chopard Red Carpet Collection diamonds and diamond pavе́. jewelry: a ring, a necklace 34.88 The second was a part of the and earrings with rubies (over carats 52 carats) and diamonds (with Bvlgari Heritage collection a total weight of 132.36 carats). that had been created in 1959. 30.43 21.43 It is noteworthy that this carats carats 132.36 vintage platinum bracelet carats

Andrea Raffin / Shutterstock.com with diamonds had already appeared on the red carpet several times: over the years, it Emeralds was a part of the outfit of Julia One of the most original Roberts, Reese Witherspoon

Zuma / TASS emerald jewelry designs of and Jennifer Garner. Cannes 2019 was the necklace in the shape of a crocodile worn by Monica Bellucci. In Hahn Lionel / ABACA / TASS 2006, she already presented a necklace with this reptile to the public, but that time it was a vintage necklace from 1975. 22.69 It was originally commissioned carats by Mexican actress Maria Fе́lix Red Carpet Collection and adopted the form of two necklace, rubies, curved crocodiles decorated diamonds with 1060 emeralds, 1023 yellow diamonds and two Lily Collins was seen at Met Gala wearing one rubies. Maria, the first beauty of the most massive jewelry of the Spanish movies, starred pieces: Cartier Magnitude High in more than 45 films, posed Jewelry necklace and earrings, Featureflash Photo Agency / Shutterstock.com built around large emeralds and for Diego Rivera, modeled for Bella Hadid, the complemented by rock crystal, Christian Dior and amassed Amber Heard diamonds, onyx and black ambassadress of Bvlgari, also wearing Chopard Red Carpet lacquer. a sizeable jewelry collection. opted for the shades of red Collection earrings in 18-carat It is rumored that, when during one of her appearances white gold with diamonds and at the Cannes Film Festival, commissioning this necklace 22.69-carat rubies caused a furor The highest jewelry with picking the Bvlgari High Jewelry in Cannes. The earrings were to Cartier House, she brought rubies was demonstrated in Diva earrings with rubies and complimented by a ring made Cannes, largely due to rubies’ a real crocodile who lived in diamonds and the High Jewelry in white gold with rubies and active presence in Red Carpet Serpenti bracelet in white gold diamonds. her villa as a model. Shortly Collection, created by Chopard with rubies, diamonds and before her death in 2002, House specifically for the diamond pavé. festival. One of the central pieces Fе́lix sold the majority of her of the collection – the necklace collection, and the precious with three rows of rubies – was crocodile returned under the brought out by a member of the jury, Elle Fanning. roof of Cartier House.

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Indian actress and model, Chopard Red Carpet Diana Penty, stepped Swedish model Elsa Hosk earrings of white gold and titanium with on the red carpet in Cannes wearing boasted the most spectacular impressive 13.33-carat pink sapphires spectacular large de Grisogono jewellery from the latest de and diamonds completed the outfit of earrings harking back to art deco Grisogono collections at the Cannes the Indian actress Kangana Ranaut. The stylistics. The massive shape was film festival. It included de Grisogono alternate pink and white stones sparkling softened by diamond-framed pink High Jewellery earrings of white gold in the floodlights made the round-shaped opals of a delicate pastel shade. with diamonds and pink rubies. earrings look larger. EASY D ETECTION De Grisogono India earrings, FOR DIAMONDS AND DIAMOND JEWELERY pink gold, opals, diamonds

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From mauve to pink Actress Lili Reinhart appeared at the Met Gala sporting antique jewellery, Legion-Media some of which was loaned to her by Fred Leighton, a company beloved by many a Hollywood stars. For a long time, the brand focused on antique jewellery, which its founder, Murray Mondschein, used to buy worldwide from heirs of aristocratic families and resell to wealthy ladies or loan to stars to wear on events. It is a known fact that the jewellery set shown off by Lili Reinhart at the Met Gala featured Fred Leighton diamond earrings, and its core element was a shining amethyst-studded necklace with a 19th-century crucifix, coupled with an 1830 diamond necklace. The finishing touch was provided by a Victorian ring with a pink topaz. The largest number of pink-spectrum gems was counted in Cannes. And one of the most unusual pieces was displayed by model Izabel Gular – large Chopard Haute Joaillerie earrings made of titanium, pink ALROSA DIAMOND INSPECTOR IDENTIFIES: rubies (53.07 carats), pink sapphires and diamonds. / polished man-made/ / polished diamonds / non-diamond imitations/ lab-grown diamonds grown simulants (moissanite, using HPHT or CVD methods / enhanced/treated cubic zirconia, etc.) (other methods) polished diamonds

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