Alrosa suspends operations at less profitable deposits amid sanctions

Alrosa (MCX: ALRS) has decided to temporarily suspend operations at its less profitable deposits.The suspension will affect deposits with an annual production of less than 1 million carats, according to Russia’s state-owned diamond miner.The company stated that it still plans to produce 29 million carats of diamonds in 2025.In November 2024, Alrosa indicated that it might suspend some production in 2025 and reduce staff.The world’s largest producer of rough diamonds by volume has been impacted by a ban on Russian diamond sales to G7 and EU countries as part of Western sanctions. These countries have agreed to ban direct imports of Russian diamonds starting January 1 2024 and to phase in a full ban on Russian-origin stones via third countries beginning March 1 2024, in response to Moscow’s actions in Ukraine.Alrosa’s output fell by 4.6% to 33 million carats in 2024, while net profit declined by 77.3% to 19.3 billion roubles ($216.26 million).To offset the impact of the sanctions, the Russian government regularly purchases diamonds from Alrosa through a state fund.(With files from Reuters)Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com