Alrosa has sold a parcel of rough to Gokhran, the state-owned gem and precious-metal repository, in the wake of the persistent slow demand and market challenges sanctions on Russian diamonds have triggered.
While the miner did not disclose the total carat weight contained in the batch, nor its value, it did say it included gem-quality diamonds of various colors and sizes, including a 390.7-carat rough, which it discovered at the Ebelyahk deposit in Yakutia last year. The company will deliver the stones to Gokhran by the end of the year, it said Tuesday.
Despite the move, the company noted that recently it had seen a moderate rise in diamond prices.
This is not the first time Alrosa has sought help from Gokhran in troubled times. In March, it is believed the state fund purchased more than $100 million to $200 million in rough. The company is thought to have sold about $1.7 million in 2020 during the height of Covid-19. There was also talk of a 2022 transaction as sanctions weighed heavily on the miner.
The deal came shortly after Alrosa announced it planned to cut 2025 output and about 10% of staff costs.
“Russian diamonds, which are valued all over the world, will replenish the main treasury of our country,” said Alrosa CEO Pavel Marinychev. “The intention of the Russian State Depository for Precious Metals to purchase the precious stones mined by Alrosa demonstrates the state’s confidence that their value will continue to grow.”
Image: Rough-diamond sorting. (Alrosa)
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