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

November 21, 2024 4:33 p.m.

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

MOSCOW. November 21 (Interfax) – Alrosa, which controls almost a third of global diamond mining, plans to suspend production at a number of the least profitable sites in 2025 and optimize its costs, including those of staff, Alrosa CEO Alexei Marinychev said in an interview on Yakut. Almazny Krai TV channel.

“The sector is currently going through a crisis. The crisis is quite deep. We are seeing a drop in prices for the second year in a row. We are in a period where we are forced to take optimization measures, monitor our expenses and reduce our costs,” said Marinychev.

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

“However, this does not mean that we should not monitor our spending closely,” he said. Alrosa is currently optimizing the payroll and plans to reduce it by 10%. “This would mainly concern managers, specialists and employees. This includes part-time employees and unpaid leave. Of course, this is also a partial release of our employees into the market,” he said. -he explained.

The diamond mining company is also considering plans for processing the rock mass and, accordingly, mining, Marinychev emphasized.

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

Alrosa plans to increase its production capacity quickly as the market recovers and “operates in a traditional manner.”

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