Alrosa's production will fall 14% in 2026 to 25 mln - 26 mln carats, company must regulate market - company head

MOSCOW. Dec 24 (Interfax) - Alrosa plans to mine 25 million to 26 million carats of diamonds in 2026, the company's general director, Pavel Marinychev, said in an interview with the Rossiya 24 television channel.

As reported, the company will produce 29.7 million carats this year. Next year's production will therefore decrease 14%.

Alrosa intends to increase production again to 29 million to 30 million when "the market adjusts," he said.

"Next year we have planned approximately 25 million to 26 million carats of production. Again, not because we cannot mine more, but in order to properly regulate demand and properly regulate global diamond inventories. Alrosa influences this directly, as every third raw diamond that becomes a diamond in the world is mined at the company's deposit. After the market adjusts, we will return to our target indicator - plus or minus 29-30," he said.

"The current year and a number of subsequent years will be minimal from the point of view of production and mining around the world. A number of enterprises are reducing their production in order to regulate demand and supply," Marinychev said.

Alrosa will add approximately 40 million carats of diamonds to its balance sheet at the end of 2025 or the beginning of 2026, Marinychev said. This will ensure normal business planning.

Marinychev clarified that Alrosa is continuing its project to develop deep-level mining at the Udachny mine. "We reached an investment decision some time ago to develop the deep levels of the Udachny pipe. We are moving forward with the project and have not stopped it. We intend to mine from the deep levels," Marinychev said, attributing the need for the project to the overall depletion of the raw material base and the increasingly difficult mining conditions. "The world has long since run out of easy diamonds," he said.

Amid Western sanctions, Alrosa is actively developing cooperation with China and India, which are among the top three largest consumers of jewelry and natural diamonds, he said. The company is also expanding exports to countries in the Persian Gulf and Asia, including Indonesia and Vietnam, strengthening its positions in new sales markets.

Speaking about diversification into gold, which Alrosa has pursued to smooth out fluctuations in diamond prices and reduce risks during a period of instability, Marinychev said that Alrosa is exploring deposits around Degdekan in the Magadan Region. An agreement on this has been reached with the regional authorities.

Alrosa is also conducting associated exploration for polymetals in the Mirny District, and considers the direction promising.