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Alrosa Halts Production at Less Profitable Diamond Mines

Watches and Jewellery

Business Honor
31 March, 2025

Alrosa suspends operations at less profitable mines while maintaining its 2025 production target of 29 million carats.

Russian diamond giant Alrosa has closed down some of its less profitable mines on a temporary basis. The action primarily applies to mines with yearly production of less than 1 million carats, as the company seeks to optimize its operations in the face of volatile market conditions. Despite the decline in production, Alrosa has assured investors that its total 2025 production level of 29 million carats is still on course.

This action follows Alrosa's previous declaration last November 2024 when it threatened production cuts and retrenchments on account of the poor condition of the international diamond market. One of the globe's leading producers of diamonds, the company refused to state the duration of the suspensions as well as if there will be additional adjustments in the future.

Alrosa's suggestion of shutting down unprofitable mines is an industry trend, with diamond firms dealing with volatile demand and rising costs of production. The company, although not having reported details of the financial effects, is making an effort to stay profitable in such times, say analysts.

With the ever-changing global diamond market, Alrosa's move will be watched with keen interest. The ability of the company to produce at the lowest cost to achieve its production targets will be crucial to its long-term success in the volatile and highly competitive diamond market.