Russia Alrosa diamond miner forecasts output revenue increase ahead of privatization

The diamond miner, along with fellow Russian firms Rosneft and Bashneft are among the most likely candidates for privatization this year, Economic Development Minister Alexei Ulyukayev said in February.

Russia’s Alrosa, the world’s top diamond producer by output in carats, is painting a “bright” outlook for the market and expects demand to start exceeding supply after 2019.

Reviewing its 2015 results, the company said output climbed to 38.3 million carats, a 6% increase when compared to the previous year, thanks mainly to improvements at its Mir and Udachny underground mines, as well as the commissioning of Karpinskaya-1 and Botuobinskaya pipes and other high-potential deposits.

Alrosa, which together with De Beers controls almost two-thirds of the diamond market, also saw its reserves grow last year to 43.6 million carats.

Despite poor global diamond market conditions, the Russian giant sold 3.8% more rough diamonds and increased sale proceeds by 8%, having reached $3.4 billion (RUB 224.5bn).

The miner, 44%-owned by Russia with the republic of Yakutia holding 25% and its municipal districts another 8%, said its current market capitalization now exceeds $6.2 billion (RUB 412bn).

The diamond miner, along with fellow Russian firms Rosneft and Bashneft are among the most likely candidates for privatization this year, Economic Development Minister Alexei Ulyukayev said in February.

Source: Mining