Russian diamond producer “Alrosa” announced the shutdown of a number of mines and the reduction of employees

Russian diamond mining company “Alrosa” plans to reduce costs for workers and production due to the crisis in the field. It is also going to suspend the development of the least profitable deposits. This is reported by The Moscow Times, writes UNN.

Details

As the head of the company Pavlo Marinichev notes, the industry is currently going through another crisis. This crisis is quite deep. If you look at the duration, then for the second year in a row, our company has consistently reduced prices.

We are now, of course, in such a rather difficult situation… And our task, of course, is to survive, wait out this period, wait for prices to rise again,

He notes that the company will optimize plans for the production of mining mass next year, after the record year of 2024, which will affect diamond production in general.

It is emphasized that “Alrosa” will suspend part of the least profitable deposits, but will return them to work when the markets recover.

Individual areas that are less profitable, that are at the marginal value of profitability, they may be subject to suspension in this crisis period,

In addition, according to the publication, “Alrosa” will reduce the wage fund by 10%. This will be done at the expense of paying managers of employees, introducing part-time working hours, vacations at their own expense, etc. The number of personnel will also be reduced, Marinichev said, but did not say by how much.

Also, the company will “reduce activity” regarding a number of investment projects, slowing down the implementation of some development projects, but not abandoning any of them.

Marinichev 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 purchasing diamonds from the state fund if necessary.

We will remind

Switzerland adopted further measures of the 14th package of EU sanctions against Russia. The changes include clarifying the ban on Russian diamonds and extending the terms of issuing permits for withdrawing investments from Russia.