Alrosa Production Drops in First Quarter

RAPAPORT... Alrosa's diamond production decreased 17% in the firstquarter of 2018, driven by several factors, including the retrieval oflower-grade ore from the Jubilee pipe. Output fell year on year to 7.4 million carats for the firstthree months ending March 31, the Russian miner said last week. Production at the Mirny division declinedfollowing the shutdown of the Mir underground mine in August 2017 after a floodthat claimed eight lives, noted Alrosa first deputy CEO Igor Sobolev. The processing of lower-grade ore from the Jubileepipe also affected production levels, as did the termination of mining at the Udachny open pit, he added. The company sold 13.3 million carats for the period. Ofthat, 10.1 million carats were gem-quality diamonds, which sold at an averageprice of $154 per carat, while 3.2 million carats of industrial stones yieldedan average price of $8 per carat. Sales of rough stones garnered $1.58 billion, and polishedstones fetched $23.7 million. Alrosa expects production to total 36.6 million carats forfiscal year 2018, an 8% drop from the 39.6 million it recovered last year.Image: Alrosa