Russian miner Alrosa reports demand for rough diamonds on global market is on the rise due to a fall in supply
Alrosa produced 7.48 million carats of rough diamonds in the first quarter of this year, a decline of 7.5% on the year-earlier period.
Nonetheless, the Alrosa group's total sales of rough and polished diamonds in the first quarter came to $1.215 billion, a 5 percent increase on the same quarter of 2012, due to demand for rough diamonds on global market increasing because of a fall in supply.
Alrosa's Management Committee me last week to discuss the financial results for the first quarter and to implement the budget for the company.
"Against the background of the decreased supply by global producers, the increased demand on the rough and polished diamonds market in the first three months of the year [this] allowed Alrosa to achieve high rates in rough diamond sales," the firm said in a statement.
"Having insignificantly adjusted rough diamond prices in the first quarter, Alrosa fixed the current level of the cost of rough diamonds being sold. The company’s conservative pricing policy is conditioned by the necessity of maintaining a moderate demand on the diamond market…"
Alrosa reported that it invested around $128 million (4 billion rubles) in the fixed assets in the first quarter, with some $57 million (1.8 billion rubles) on the construction of the underground mines at Mir, Aikhal and Udachny.
