ALROSA says studies scenarios of cutting production in 2021–2022

MOSCOW, May 15 (PRIME) -- Russian diamond mining giant ALROSA is studying scenarios of cutting production in 2021–2022, as seen by PRIME on Friday in the materials of the company.

The company produced 28.5 million carats of diamonds in 2019, and initially planned to produce about 38 million carats in 2020, but it worsened the outlook for this year to 34.2 million carats last year due to a crisis in the sector and problems with sales. The coronavirus pandemic and a subsequent slowdown in the economy may result in an even deeper production cut this year, according to ALROSA.

The company initially expected production at 37–38 million carats per year in 2021–2030, but it is now studying revision of plans for at least 2021–2022 due to the economic situation.

Besides that, the company also expects lower capital expenditures in 2020–2021. For now, expenditures are planned at about 22 billion rubles this year and at 29 billion rubles in 2021. The company has finished its major capital-intensive stages, so it may reduce the investment program depending on market conditions.

(73.9298 rubles – U.S. $1)

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