Alrosa to Increase Output to 36 Million Carats in 2014

Russia’s Alrosa is aiming for output of in excess of 36 million carats this year – around two million carats more than the 34.4 million carats in 2012 – according to initial estimates.

The main factors behind the increase in output are: the purchase of the OJSC Nizhne-Lenskoe operation, the increased diamond grades at the Yubileynaya pipe, and an increase in production at the Mir underground mine.

Alrosa is aiming for production of approximately the same amount of diamonds in 2014 as this year.

 

Alrosa holds rough diamond tenders at the Israel Diamond Exchange via its Israeli subsidiary, Archos.
 
The company said it predicts a “stable balance between demand and supply on the rough diamond market with a potential gradual growth in rough diamond prices of 2-3 percent throughout 2014”.

“The priority target of the Alrosa Group for 2014 is to keep its world’s leading position in terms of rough diamond mining and develop its production facilities and mineral resource base.”

Alrosa will also start preparing for the 2015-2017 diamond supply contract period. “Long-term agreements with major manufacturers of polished diamonds and jewelry remain Alrosa’s key priority, and the company expects this number to grow in the new contract period. Making up the customer list, Alrosa will take into account its experience of cooperation and amount of previous work with the customers under long-term agreements and spot transactions.

The miner said that in the mining sphere its plans for 2014 include starting work on the Udachny underground mine, and putting into operation the Ebelyakh and Ruchey Gusiny placers at OJSC Almazy Anabara, among other issues.

Alrosa’s capital investment next year will amount to $1.18 billion, the same level invested this year. However, the investment in underground mines will be increased by 30 percent from this year to $425 million.

Most of the money will be spent on construction of the Udachny underground mine, where the most extensive works are planned in 2014 before putting it into operation.