ALROSA proposes to mothball alluvial diamond deposits in 2026

ALROSA, which plans to reduce diamond mine output 15% this year, has looked into mothballing a number of alluvial deposits, says Deputy Russian Finance Minister Alexei M. “They’ve analysed how cost-effective it would be, and we’ve backed them here. It’s quite difficult to shut a deep mine, of course, but not an alluvial one,” he said. Those deposits will reopen as soon as the market stabilises and prices rise.

Alexie M also said the Finance Ministry was still looking at the possibility of buying rough diamonds for the State Fund this year. Diamonds have not been purchased, and the Finance Ministry continues to monitor the situation.

The diamond market has been in serious crisis for a year and a half, he said, but is now showing signs of stabilisation, judging by sales by African sellers at the end of April. “We are seeing signs that the market is stabilising. We hope that growth will ensue,” Alexie M said. Overall, a major diamond shortage is possible in about five years, as a lot of mines in Africa and Russia are reaching the end of their life, he said. “This is exactly the sort of situation where the strongest wins. I’m sure Alrosa will survive, but some others probably won’t,” he added.