Alrosa, Russia's leading diamond miner, reported a 4.6% drop in output for 2024 compared to the previous year, producing 33 million carats against 34.6 million carats in 2023. The decline comes amid a combination of economic sanctions, slowing demand, and depressed rough diamond prices.
Sanctions Force Strategic Changes
Economic pressures have compelled Alrosa to:
- Sell its stakes in Angolan diamond mines Catoca and Luele, further impacting its production capabilities.
- Receive a bailout from Russia’s Gokhran, the state-owned gem and precious-metal repository, which purchased over $100 million worth of unsold rough diamonds last month.
These moves underscore the challenging conditions Alrosa faces in navigating both domestic and international markets.
Contributions to Regional Budgets
Despite production cuts, Alrosa contributed RUB 50 billion ($484.1 million) to the Yakutia regional government in 2024, with plans to maintain this level in 2025. The company anticipates increasing its contributions in the coming year as part of its financial and economic plan for 2025.
Investments in Mining Infrastructure
Alrosa continues to focus on improving its mining operations:
- Construction began on the fourth phase of the underground project at the Aikhal site.
- Ore extraction resumed from the central part of the Jubilee open-pit deposit.
- Engineering surveys for the Mir mine, currently awaiting reconstruction, have been completed and received positive feedback.
CEO Pavel Marinychev expressed optimism about these advancements, emphasizing their importance in sustaining long-term production capabilities.