Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Investing

Alrosa to Cut Production and Staff to Counter Diamond Market Slump

by admin November 25, 2024
November 25, 2024
Alrosa to Cut Production and Staff to Counter Diamond Market Slump

Alrosa (MCX:ALRS), Russia’s state-owned diamond miner, plans to suspend certain operations and reduce its workforce in 2025 as it confronts falling global diamond prices and the impact of international sanctions.

CEO Pavel Marinychev outlined the measures during an interview with local media in Yakutia, the company’s primary production hub, as reported by Reuters on Thursday (November 21).

The global diamond industry is experiencing a downturn, with Marinychev describing the situation as a ‘deep crisis.’

Prices for the gems have declined for the second consecutive year, a situation that Marinychev said has been further exacerbated for Alrosa by sanctions from the G7 nations and EU. Together, they instituted a direct ban on Russian diamond imports at the start of 2024, and added an indirect ban at the beginning of March.

Alrosa is targeting a 10 percent reduction in labor costs next year, which will affect its 35,000 employees.

Marinychev stated that areas of production deemed less profitable will be paused, though operations in these regions could be resumed swiftly if diamond market conditions improve. ‘We are currently in a rather difficult situation. Our task is to endure and wait out this period, to wait for prices to start rising again,’ he explained.

The company has not published sales data since 2022, the year Russia launched its invasion of Ukraine.

The Russian government, which occasionally buys diamonds from Alrosa to support the industry, plans to continue these purchases in 2025. Deputy Finance Minister Alexei Moiseev confirmed that the government’s budget for 2025 to 2027 includes US$1.55 billion allocated for acquiring precious metals and gemstones.

This measure is intended to stabilize the diamond market and alleviate pressure from oversupply.

Given the diamond market’s challenges, Alrosa has sought to diversify its revenue. In July, the company finalized the acquisition of the Degdekan gold ore field in Russia’s Magadan region through its subsidiary, Almazy Anabara.

The US$276 million purchase, part of a broader strategy to enhance financial stability, marks Alrosa’s entry into the gold sector. Degdekan is expected to yield approximately 3.3 metric tons of gold annually starting in 2030.

Alrosa’s investment in the project underscores its intention to leverage synergies within its mining operations while reducing dependency on diamond revenue, particularly in light of sanctions targeting its primary export markets.

While diversifying into gold mining, Alrosa remains committed to its core operations in diamond production.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
Troy Minerals Completes LiDAR Survey at Table Mountain Silica Project, British Columbia
next post
Trump’s legal cases likely to die out amid impending White House return, experts say

Related Posts

Oil and Gas Price Forecast: Top Trends That...

December 25, 2024

Walker Lane Resources Announces Terms for Private Placement...

June 10, 2025

Australian Ethics Committee Approval to Expand PD-L1 Nanobody...

November 19, 2024

Lithium Market 2024 Year-End Review

January 1, 2025

Positive Uranium Leach Test Results at Lo Herma

February 11, 2025

Falco Announces Extension of Certain Deadlines and Other...

February 1, 2025

Eric Sprott Announces Changes to His Holdings in...

July 26, 2024

Lundin Mining and BHP Close Filo Acquisition, Launch...

January 17, 2025

North Shore Closes $1.4 Million Non-brokered Private Placement...

August 29, 2025

Top 5 NASDAQ Biotech Stocks

July 11, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Memorial service for assassinated Turning Point USA founder Charlie Kirk draws Trump, major GOP figures

      September 22, 2025
    • Russia shifts from talk to action, targeting NATO homeland amid fears of global war

      September 22, 2025
    • German officials condemn store owner who declared Jews banned from entry to protest Israel

      September 22, 2025
    • Trump honors Charlie Kirk’s legacy and describes him as a ‘martyr for American freedom’

      September 22, 2025
    • Charlie Kirk honored by 90K in one of the largest memorials for a private citizen

      September 22, 2025

    Categories

    • Business (1,107)
    • Investing (3,087)
    • Politics (3,773)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved