Alrosa’s diamond production down 2% in Q1’16

Alrosa announced its production and preliminary trading performance for the first quarter of 2016. The company achieved diamond production of 8.2 million carats in the period, reflecting a 2 percent fall on y-o-y basis. Indicatively, it clocked sale of 12.1 million carats of diamonds, including 8.9 million carats of gem-quality diamonds at an average price of USD 146 per carat and 3.2 million carats of industrial diamonds at an average price of USD 7 per carat. Revenue from rough diamond sales amounted to at least USD 1.3 billion.

The company has attributed its lowered production to increase in ore processing at Mir underground mine and decrease in ore processing at International underground mine; partial replacement of ore processed from Udachny pipe with ore processed from Zarnitsa pipe due to the termination of open-pit mining at Udachny pipe.