Alrosa could suspend production of at least profitable assets, optimize personnel amid the prolonged market crisis

MOSCOW. November 21 (Interfax) – Alrosa, which controls nearly a third of global diamond mining, is considering suspending production at some of its least profitable locations in 2025 and optimizing costs, including with staff, Alrosa’s CEO said, Alexei Marinychev, during an interview for Yakut’s. Almazny Krai TV channel.

“The industry is currently facing a crisis. The crisis is quite deep. We have seen a drop in prices for the second consecutive year. We are in a period where we are forced to take optimization measures, watch our expenses and we are cutting costs,” said Marinychev.

The company has attracted financial resources in the market to face the difficult times in terms of sales. “We have a financial safety net,” Marinychev said.

“However, that doesn’t mean we don’t have to keep a close eye on our spending,” he said. Alrosa is currently optimizing payroll and plans to reduce it by 10%. “This would primarily affect managers, specialists and employees. This includes part-time employees and unpaid leaves. Of course, this is also a partial release of our employees to the market,” he explained.

The diamond miner is also reviewing rock mass processing plans and, accordingly, mining, Marinychev pointed out.

“We looked at the volume of the rock mass. This could only affect the volume of diamond mining, which we could afford to reduce in 2025, so as not to disrupt our deposit development strategy. Some less profitable areas may be subject to suspension during the crisis period,” he said.

Alrosa expects to increase its production capacity quickly as the market recovers and “works as usual”.

“Of course, none of the mining and processing plants will stop,” Marinychev said.