Alrosa’s H1 Diamond Production Slips 6% To 16.9 Mn Cts
Alrosa, the world’s largest diamond miner in volume terms, reported a 6% decline in diamond production to 16.9 million carats on a yearon-year basis during the first six months of 2016. Alrosa’s diamond output in the second quarter fell 9% to 8.7 million carats compared to the second quarter of 2015.
According to the company, the drop-off was driven by an increase in ore processing at the Mir underground mine and a decrease in ore processing at the International underground mine; partial replacement of ore processed from Udachny pipe with ore processed from Zarnitsa pipe due to the termination of openpit mining at Udachny pipe; and a decrease in gravel processing at alluvial deposits due to an adjustment of the production plan for 2016 from 39 million carats to 37 million carats.
Indicatively, in the second quarter of 2016, Alrosa sold 9.6 million carats of diamonds, including 7.1 million carats of gem-quality diamonds at an average price of $169 per carat and 2.5 million carats of industrial diamonds at an average price of $8 per carat.
Revenue from rough diamond sales amounted to at least $1.2 billion in Q2 2016 and at least $2.5 billion in H1 2016.