Alrosa Plans to Cut Production and Staff
November 26, 24
(IDEX Online) - Russia's state-controlled diamond miner Alrosa is planning to scale back production and cut staff as it battles a slump in demand, together with G7 sanctions.
The company's CEO, Pavel Marinychev (pictured), told a Russian TV station last week that the global diamond industry was in a "deep crisis".
He said Alrosa could suspend some of its less profitable activities, and lay off some of its 35,000 workers in a move designed to save 10 per cent on its labor budget.
"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 said.
The latest figures available from Alrosa, for the three months to June, show revenue down 34 per cent year-on-year to $680m.
Earlier this year Marinychev said the company was seeking to strengthen ties with Brazil, India, China, and South Africa and other BRICS countries in response to tighter sanctions on diamonds from the G7 and EU.
Alrosa also offloads excess diamonds to the Gokhran - the State Fund of Precious Metals and Precious Stones.
The Gokhran has, according to the Interfax news agency, set aside $490m for diamond purchases this year.