Alrosa Group has announced its operational performance in Q2 of this year, indicating an increased of diamond production by 14%, as against the second quarter of last year.
Diamond production recorded by the miner brings it to 9.7 million carats, which is associated with seasonal resumption of mining at alluvial diamond fields.
According to the statement, the company’s production also increased by 10% during the first half of the year compared with the first half of 2018 and amounted to 17.6 million carats. This is due to the commissioning of the Verkhne-Munskaya mine, higher production at Udachny and increased processing of ore from the Botuobinskaya diamond pipe.
However, the company reports it is diamond sales reached 8.3 million carats in the second quarter of 2019, a slump by 22% compared with the previous quarter and by 8% compared with the second quarter of 2018.
The reason for slow sales is due to the backdrop of declining demand; excessive stocking of rough and polished diamonds by cutters and retailers; and continued difficulties faced by India’s cutting business in securing affordable financing.
According to Alrosa, the above-mentioned reasons have affected diamond sales in the first half of the year decreasing them to 18.9 million carats, which is 16% lower than in the first half of 2018.
Alrosa’s diamond sales in value terms in the second quarter totaled $ 796 million, a decrease of 19% versus the first quarter of 2019 and a 25% fall compared with the second quarter of 2018. And sales in the first half of 2019 amounted to $ 1,784 million, which is 32% lower than the similar figure in 2018.