The Russian diamond mining company Alrosa plans to cut costs for employees and production due to the crisis in the industry. It is also going to suspend the development of the least profitable deposits. This was reported by The Moscow Times, according to UNN.
Details
According to Pavlo Marynychev, the head of the company, the industry is currently experiencing another crisis. This crisis is quite deep. If we look at the duration, we have been recording a steady decline in prices for the second year in a row. We are, of course, in this rather difficult situation now... And our task, of course, is to survive this period and wait for prices to rise again.
He notes that the company is optimizing its plans for mining next year, after a record year in 2024, which will have an overall impact on diamond production.
It is emphasized that Alrosa will suspend some of the least profitable fields, but will return them to operation when the markets recover.
Certain areas that are less profitable, that are at the margin of profitability, they may be prone to suspension during this crisis period,
In addition, according to the publication, Alrosa will cut its payroll by 10%. This will be done by paying managers and employees, introducing part-time work, paid vacations, etc. The number of staff will also be reduced, said Mr. Marynychev, though he did not say by how much.
The company will also "reduce activity" on a number of investment projects, slowing down the implementation of some development projects, but not abandoning any of them.
Mr. Marynychev noted that the company has accumulated a financial cushion to survive the crisis. It also counts on possible support from the state in the form of purchases of diamonds from the state fund if necessary.
Recall
Switzerland has adopted further measures of the 14th EU sanctions package against Russia. The amendments include clarification of the ban on Russian diamonds and extension of the deadlines for issuing permits for the withdrawal of investments from Russia.