26-5-2020
Alrosa has lowered its production guidance for 2020 from 34 million carats to 28 to 31 million carats after the recommendation to review cutting spending and production due to the crisis facing by the rough and polished diamonds market worldwide.
“In this context, major diamond producers allowed cutters not to purchase the volumes contracted before in an attempt to pull all players across the value chain out of the crisis while also maintaining the stability of prices in the diamond market,” the miner said. “This step requires that the Company show proof of operating and financial resilience, with cost cutting and proactive production management viewed as the key tools for achieving this objective amid the slump in sales.”
To avoid diamond inventory piling up, Alrosa has and will suspend mining operations. Aikhal and Zarya has been under temporary closure since 15 May. All operations at Verkhne-Munskoye deposit are slated to stop running by early June.
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