Alrosa reports rise in diamond output due to strong demand

Russian diamond producer Alrosa received strong demand for rough diamonds during the fourth quarter (Q4) of 2021 after reporting an increase in diamond production by 4 per cent (9.1 million carats) compared with 2020 (7.1 million carats).

Full-year diamond production also rose by 8 per cent (32.4 million carats) compared with the same period in 2020 (30 million carats), due to increased output volume from the mine’s V. Munskoye and Nyurba Division deposits.

The estimated full-year total sales of rough and polished diamonds was valued at $US4.17 billion ($AU5.86 billion), representing an increase of 49% when measured against the same period in 2020 with $US2.8 billion ($AU3.94 billion).

The figures are based on the company’s preliminary report on its Q4 and full-year operating results.

Christmas trading in the US driven by increased consumer activity during Q4 was “the most profitable Christmas period in the last few years”, the report noted.  

Strong jewellery sales and demand for polished diamonds in the US also stabilised prices and increased orders in November and December with consumers looking forward to the holiday season.

In November 2021, the company expected to increase its output of rough diamonds for this year as it has seen a strong market demand amid the supply shortage caused by the COVID-19 pandemic.

With the reopening of mine sites, such as the Ebelyakh alluvial deposit and the Udachny underground mine – both of which were closed during the height of the pandemic – production from these sites was forecasted to increase yield by as much as 4.4 to 4.5 million carats.

Alrosa is one of the largest international mining companies headquartered in Russia which accounts for an estimated 95 per cent of diamonds produced in the country and 27 per cent of diamonds extracted worldwide.

More reading
Alrosa to increase diamond yield in 2022, sees sustained market demand
Recovery in diamond market as Alrosa, De Beers record positive results
International Diamond Market Snapshot – August 2021

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