Alrosa, the Russian diamond mining giant, reported a 4.6% drop in annual output for 2024, producing 33 million carats compared to 34.6 million in 2023.
The decline aligns with planned reductions due to sanctions, weak demand, and depressed rough diamond prices, according to Aisen Nikolaev, head of the Yakutia regional government.
The sanctions have also forced Alrosa to divest its stakes in Angola’s Catoca and Luele diamond mines, further impacting production capacity.
Additionally, Russia’s state-owned gem and precious-metal repository, Gokhran, intervened last month by purchasing over $100 million worth of Alrosa’s unsold rough to support the miner.
Despite these challenges, Alrosa contributed RUB 50 billion ($484.1 million) to Yakutia’s government in 2024 and is set to match this contribution in 2025. The company’s financial plan for 2025 projects even greater contributions to the regional budget.
CEO Pavel Marinychev highlighted operational advancements, including progress on the fourth phase of the underground project at the Aikhal site and resumed ore extraction from the central part of the Jubilee open-pit deposit. Alrosa has also completed engineering surveys for the Mir mine, which is pending reconstruction.
These efforts underscore Alrosa’s commitment to maintaining stability and adapting to global market and regulatory pressures.
