Russian leading diamond producer shows good results in 2020 despite pandemic

The Mir mine an open pit diamond mine located in Mirny, Sakha Republic, in the Siberian region of eastern Russia. Photo: Yakutia-daily

Alrosa, Russia's largest diamond producer, reduced its output by 22%, to 30 million carats in 2020, compared with 38.5 million a year earlier, according to recent statistics, published by the company.

 

The decline of production has also led to the decline of sales’ revenue of the company to US$2.8 billion from US$3.3 billion in 2019,

 

Still, despite such results, the Russian company for the first time in the history was able to overtake another diamond giant De Beers, which revenue last year amounted to US$2.7 billion.

 

According to Alrosa, December 2020 was one of the most successful years for it in the last several years, as its sales of rough and polished diamonds reached US$521.6 million, which is by 43.4% higher, compared to December 2019. The company explains this by the ongoing recovery of the demand in the key sales markets for it, among which are the US market and China.

 

In addition, the Indian cutting sector has boosted diamond production, that became the result of lifting of part of COVID restrictions in the country. In early 2021, cutters increased their diamond production in anticipation of stable orders, as jewelers and dealers seek to replenish inventories sold during the holiday period and prior to the forthcoming Chinese New Year.

 

By: Eugen Gerden