Industry News by Nemesis

ALROSA Won't Reduce Production Next Several Years - Ivanov

February 13, 2018

ALROSA President Sergey Ivanov said in an interview with Kommersant that in the next five years the diamond mining company does not intend to reduce production.


When asked whether ALROSA will follow De Beers' example of cutting sales to maintain prices, Ivanov said that this is not the company's task.


"Based on the current state of the world's diamond production capacity and growth in demand, we are confident that in the next five years or so we will not face the need to reduce production volumes," he said. "If we reduce production ... costs will immediately grow".


However, the company probably will not be able to increase production either due to technical factors, Ivanov noted, and in the coming years ALROSA's production will fluctuate in the range of 37-38 million carats a year.


In 2016, ALROSA reduced production while reacting to a drop in prices, but sufficient reserves were accumulated to be sold in 2017, he added.


"Our sales exceeded production - everything that has been accumulated has been realized, this year sales will also exceed production," Ivanov concluded.


Earlier, at a forum in Davos, Ivanov said that ALROSA expects sales of at least 40 million carats of diamonds this year - 36.6 million carats from production and 3.4 million carats from stocks. 

 

Source: Rough-Polished

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