KALININGRAD, Dec 6 (PRIME) -- Russia’s Kaliningrad Amber Combine has signed a three-year contract for direct exports of raw amber to China, the company said in a statement on Tuesday without disclosing its contractor.
Exports under the company’s first export contract will be done in December 2016–December 2019. Under the agreement, a Chinese company is to create an affiliate for production of at least 50% of raw materials it buys from the company at the company’s site in the Kaliningrad Region. The combined amount of exports will not exceed 22% of the Kaliningrad company’s annual production capacity.
The company will export quarterly batches of amber at a price calculated on the basis of average prices for the previous quarter at an exchange or at the company’s auctions. Every batch will be exported under a prepayment, and the company’s total revenue from the contract may reach about 10 billion rubles, the company said.
Kaliningrad Amber Combine, owned by state industrial corporation Rostec, produces about 300 tonnes of raw amber per year at a field near the Yantarny locality, previously known in German as Palmnicken. The field’s reserves amount to 116,000 tonnes, or about 90% of the world’s amber reserves.
(63.9242 rubles – U.S. $1)