Alrosa suspends production at two operations

Russian diamond major Alrosa on Tuesday announced that it would temporarily suspend mining works at two operations, citing a decrease in demand and sales as major economies are struggling amid the Covid-19 pandemic.  

Mining will cease at the Aikhal underground mine from May 15 to September 30 and the Zarya openpit will be put on care and maintenance from May 15 to December 31.

Alrosa explained that these two pipes operated at the lowest margins in the group portfolio, owing to quality characteristics of stones mined there.

“The decision to put them off line aimed to reduce accumulation of less liquid, given the current market conditions, stocks of diamonds.”

In 2019, the Aikhal and Zarya pipes produced 2.6-million carats.

Alrosa would lay off some personnel of the suspended operations and auxiliary services, while the remaining employees would be transferred to other assets or stay in the idle regime.

Further, the company said that its 2020 production plan change would be considered at the board meeting in May.