![]() “It’s not easily achievable that we can easily increase the production,” he told the FT. But Agureev, this is a process that could take “five to seven” years to complete. One of the mines that is expected to reopen in Alrosa’s Mir mine in Russia, where a flood in 2017 had killed eight miners. However, it noted, this increase will be offset by the closure of Argyle.ĭuring the coming three to five years, production will likely grow by a nominal 0 percent to 2 percent per year to allow the value chain to fully rebalance. In its report released earlier this year, Bain forecast that production would to remain stable in 2021, driven by the reopening of profitable mines that were suspended in 2020. But, said Bain, the distribution of diamond assortment by size remained relatively constant, with medium and large diamonds accounting for 70 percent to 80 percent or more of production values. The only mines to increase production in 2020 were Venetia in South Africa and the Udachny underground mine and Nyurba alluvial deposits in Russia. Production in Canada declined due to suspended mining operations at Ekati and Renard in March, and in Botswana, Jwaneng and Orapa decreased production by 26 percent. In Russia, Alrosa lowered production levels at the Botuobinskaya, Almazy Anabara, Jubilee, and other smaller mines. According to Bain & Co., production fell by 28 million carats, or around 20 percent during the year, with the biggest decreases coming from Russia, Canada, Botswana, and Australia. ![]() “But on the other side, it’s a good situation because the market will experience overproduction problems.”Ģ020 had not been a good year for diamond production. “From one side, it’s a challenging situation because there is demand and limited supply,” he said. On balance, the Russian mining executive sees the issue in a positive light. “There are projects, but these projects will not provide goods next year or the year after.” “Our industry will work with limited supply,” he said to the FT. But he did not cite overwhelming market demand for the situation, but rather mine closures and lack of new projects. In a just published interview with Britain’s Financial Times, Alrosa’s deputy chief executive Evgeny Agureev said that the company’s inventories are at historic lows. And even if, theoretically, a massive deposit is discovered in the immediate future, it will still take years to develop the site and bring it online. ![]() At the same time, there has not been a massive diamond discovery in recent years, while several large mine closures have already occurred or on the cards. ![]() Large sectors of the Chinese market had not yet been tapped, not to mention sectors of other fast-growing markets in India and Southeast Asia. At the end of last year, a yellow diamond called Firebird weighing 20.69 carats was sold to Graff Diamonds.IN PART A RESULT LOW CAPACITY OF MINING COMPANIESįor almost a decade, and in particular in the wake of the almost exponential growth of the Chinese jewelry market, the dominant narrative in the industry has been that rough diamond supply is struggling to maintain pace with polished demand, creating a dynamic by which a long-term rise in prices is almost inevitable.Įven as it became apparent that the double-digit growth in Chinese polished diamond purchases could not really be sustained over the long-term, the narrative remained the same. All three stones were cut by the Diamonds of ALROSA division and presented as polished diamonds to the public. In the summer of 2017, ALROSA mined three unique fancy color diamonds within a month: intense yellow, pink and purple-pink. Previously, several unique fancy color diamonds were unearthed there. The Ebelyakh alluvial diamond deposit (operated by Almazy Anabara, a subsidiary of ALROSA) is located on the Anabar River of the Republic of Sakha (Yakutia). Of course, cutters in any country will be interested in such a diamond, as it has the potential to give several high quality polished diamonds,” said Pavel Vinikhin, head of Diamonds of ALROSA’s cutting and polishing division. After that, we will decide whether to give it to our manufacturers for cutting or sell as a rough. ![]() Now the stone is at ALROSA’s United Selling Organization being studied and evaluated by our specialists. “Such a large natural color rough diamond is a unique discovery. The diamond’s dimensions are 47x24x22 mm, and, according to preliminary estimates, it is 120-230 million years old. This is the largest natural color rough diamond ever found in Russia. The diamond was extracted from the Ebelyakh mine in Yakutia, Russia. Almazy Anabara ( Diamonds of Anabar), a part of ALROSA Group, found a 236-ct rough diamond of intense yellow-brown color. ![]()
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