Editor’s Note
This article reports on Alrosa’s decision to halt production at two sites, a move directly tied to the ongoing slump in global diamond demand. The broader market downturn, significantly impacted by the pandemic, underscores the challenges facing the industry.
Russian diamond mining giant Alrosa (MCX: ALRS) has temporarily suspended production at two of its assets as diamond demand and sales continue to decline.
Major consumers, including China and the United States, are grappling with economic headwinds caused by the global COVID-19 pandemic. Extended lockdowns affecting key players in the supply chain, including polishers and major retailers, have only worsened the situation.
The state-controlled Russian miner stated that the extreme market conditions would force the suspension of its Aikhal underground mine and the Zarya open-pit mine from May 15 to September 30 and December 30, respectively.
The two assets represent approximately 7% of the company’s diamond production in carat terms. They produced 2.6 million carats of rough diamonds last year.
The remaining employees will be transferred to other assets or will stay to perform maintenance work at the idle operations.
The diamond giant said in March that it might revise its 2020 production guidance, which currently stands at 34.2 million carats. In 2019, it produced 38.5 million carats.