Alrosa 2008 Production and Sales Decline Slightly

Sales of rough diamonds by the Russian monopoly Alrosa have declined 1.1 percent to $2.76 billion in 2008, according to Alrosa President Sergei Vybornov. Diamond production declined 1.7 percent to $2.33 billion.

Earlier in December Alrosa said it cut its profit forecast by 90 percent to $51 million. In November, the diamond miner reported a 97 percent decline in third quarter profits. 

In a statement published Tuesday Vybornov said sales of “quality” diamonds - perhaps gem quality diamonds - would grow 0.6 percent to $157.2 million, RIA Novosti reported.

“The world's largest diamond producers have turned out to be unprepared in full for such a sharp negative change in the market situation,” Vybornov said in regards to the global economic crisis. Following pressure from manufactures, Alrosa agreed in November to reduce its supply by up to 40 percent.

The announcement comes on the heels of news that Alrosa reached an ore body during underground work at its Mir mine, six months earlier than it anticipated.

The launch of the first start-up complex at the Mir diamond mine is scheduled for July 15, 2009.