ALROSA to produce 3 to 6 million less carats
(Kitco News) - Russian diamond giant, ALROSA, said today that it is cutting production to 28–31 million carats versus its initial guidance of around 34 million carats.
The COVID-19 pandemic has hampered demand.
"The coronavirus pandemic and steps taken to fend it off have had their toll on the demand for diamond jewellery, which saw strong growth earlier in the year. In this context, major diamond producers allowed cutters not to purchase the volumes contracted before in an attempt to pull all players across the value chain out of the crisis while also maintaining the stability of prices in the diamond market," wrote ALROSA in a news release.
The company said it is halting commercial production at the Verkhne-Munskoye deposit. ALROSA already suspended operations at Zarya and Aikhal.
The company said it expects to resume mining on Oct. 1, 2020.