Russian Alrosa diamond company posts 6% rise in 1st quarter production

YEREVAN, April 21. / ARKA /. Russian Alrosa, the world's top producer by output in carats, said production rose 6 percent year on year to 8.4 million carats in the first quarter that ended on March 31. 

The increase was driven by expanded production at the company's Mir underground mine, the Botuobinskaya pipe and the Arkhangelskaya and Karpinskogo-1 pipes at the Lomonosov deposit, Prime reports.

Alrosa said it sold 9 million carats during the quarter, which was 29 percent less than one year earlier. Sales included 7 million carats of gem-quality diamonds at an average price of $161 per carat and 2 million carats of industrial diamonds with an average price of only $8 per carat. The company expects that its first-quarter revenue from rough sales will reach $1.1 billion, compared with $1.5 billion reported in the first quarter of 2014.

Alrosa noted that rough diamond prices during the quarter dropped by 3 percent, impacted by weaker diamond demand. Still, the company expects market conditions to improve as key diamond jewelry markets in the U.S., China and India pick up. 

Alrosa reported also that it processed 5.5 million tons of ore during the quarter, 2 percent more than the same period one year ago, while the average grade achieved rose 3 percent to 1.52 carats per ton. 

Production at the Aikhal division, which consists of the Jubilee pipe, Aikhal underground mine and Komsomolskaya pipe, fell 13 percent to 2.596 million carats. The Mirny division, which includes the International and Mir underground mines and various alluvial deposits, reported a production increase of 31 percent to 1.941 million carats. 

The Udachny division, including the Udachnaya and Zarnitsa pipes and the Udachanay underground mine, reported production grew 21 percent to 1.349 million carats, while the Nyurba division's production declined 1 percent to 2.048 million carats. Production at the Lomonosov division jumped 93 percent to 450,000 carats, while production at Almazy Anabara and Nizhne-Lenskoye ceased during the period due to the seasonality of gravel mining.-0-