Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Starmer says UK to recognize Palestinian state if...
‘Critical’ closed-door congressional huddle focuses on growing antisemitism...
Trump’s CDC pick confirmed—but her pro-vaccine stance may...
Trump pick Emil Bove confirmed as federal judge...
From Gaza to Greenland, Macron breaks with Trump...
Schumer calls on FBI to conduct counterintelligence threat...
Biden ‘Politburo’ member Steve Ricchetti to appear before...
Trump looks to skip G20 summit in South...
Backlash against Sydney Sweeney ‘jeans/genes’ ad gets mocked...
Biden ‘Politburo’ member Steve Ricchetti appears before House...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

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

previous post
Troy Minerals Completes LiDAR Survey at Table Mountain Silica Project, British Columbia
next post
3 things Dr. Oz can do as CMS administrator to help fix American health care

You may also like

Bold Ventures Inc. Invites Shareholders and Investment Community...

January 18, 2025

Metals Australia

December 24, 2024

SSR Mining Plans Restart of Seabee Gold Operations...

September 26, 2024

Quimbaya Gold Announces Strategic Private Placement of up...

May 29, 2025

12 Generative AI Stocks to Watch as ChatGPT...

August 22, 2024

Nova Minerals Completes NASDAQ IPO, Secures Growth Capital

July 27, 2024

Lode Gold Announces $350,000 Non-Brokered Financing

December 24, 2024

Acquisition of Solar Panel Recycling Technology

June 18, 2025

Result of AGM, Share Consolidation and TVR

November 27, 2024

Nuclear Fuels Acquires TenSleep Uranium Project with Athabasca...

March 3, 2025

Recent Posts

  • Starmer says UK to recognize Palestinian state if Israel doesn’t agree to ceasefire, Hamas must ‘disarm’
  • ‘Critical’ closed-door congressional huddle focuses on growing antisemitism in US, Mamdani’s rise
  • Trump’s CDC pick confirmed—but her pro-vaccine stance may clash with RFK Jr.’s agenda
  • Trump pick Emil Bove confirmed as federal judge after furious Democrat walkout, whistleblower complaints
  • From Gaza to Greenland, Macron breaks with Trump on global flashpoints

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


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

    Categories

    • Business (845)
    • Investing (2,651)
    • Politics (3,267)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.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 © 2024 Sightful Invest. All Rights Reserved.