Russian company Alrosa has halted operations at several deposits, including a large mine run by its subsidiary Almazy Anabara. The company cited the low profitability of certain sites among the reasons.
Which deposit has been mothballed
The mothballed deposit belongs to the subsidiary Almazy Anabara, which is the world’s largest enterprise for diamond mining from alluvial (placer) deposits. It supplies 11% of the Alrosa group’s output.
Work has been stopped specifically at the least profitable sites in order to optimise the production and cost structure, the company’s CEO said.
Financial results and planned cuts
This year the company recorded a net loss of 9.5 billion rubles (about 115 million dollars). Compared with the same period last year, revenue fell by 33%, and EBITDA dropped by 61% — to 14.3 billion rubles (about 173 million dollars).
In the first six months the cash shortfall amounted to 16.9 billion rubles (about 204 million dollars), and over the past 12 months to 33.2 billion rubles (about 401 million dollars). Last year production fell by 10% — to 29.8 million carats, and for the current year the company expects a reduction of 13−16% — to 25−26 million carats.
“optimise costs” — Pavlo Marinychev
A third of the company’s shares are owned by Rosimushchestvo, with a further 25% held by the government of Yakutia.
