Mine Closures Hit Alrosa Production

RAPAPORT... Alrosa's rough-diamond production fell 7% in 2018 amid theclosure of two of its assets, the miner said Thursday. Output for the year dropped to 36.7 million carats, as thecompany was no longer carrying out open-pit mining at the Udachnaya pipe. TheMir mine, which shut in August 2017 after a flood that killed eightemployees, also remains closed. The Russian miner reported sales volume of 38.1 millioncarats for the year, an 8% decrease. However, sales value rose 6% to $4.51billion, as the average price jumped 21% to $164 per carat. Fourth-quarter production rose 2% year on year to 10.3million carats, with higher output at Alrosa's underground assets outweighing the seasonal suspension of production at the miner's alluvial deposits, it said.The company sold 9 million carats at an average price of $153 per carat. Byvalue, sales dropped 6% to $845million for the period. The miner's rough-diamond inventory was 17 million carats at theend of 2018, down 6% from a year earlier. Alrosa plans to produce 38 million carats in 2019, a 4%increase from the previous year, as it ramps up output at its Severalmaz assetand launches production it its new Verkhne-Munskoye deposit, it said. Image: Rough diamonds from the Mir underground mine. (Alrosa)