Focus on

DIAMOND MINING

(Photo courtesy of Alrosa)

ALROSA KEEPS UP ROUGH DIAMOND PRODUCTION, DISCOVERING GIANT INTENSE FANCY YELLOW STONE

Despite the dramatic global slowdown in rough diamond supply, work continues at mines owned by Alrosa, the state-controlled Russian producer, which has just announced the discovery of a 236-carat intense fancy yellow colored diamond at the Ebelyakh mine, in the north of Yakutia, the autonomous area in Siberia where most of the country’s deposits are located.

According to a statement put out by the company, it “is the largest natural color rough diamond ever found in Russia.”

With dimensions of 47 millimeters x 24 millimeters x 22 millimeters, the rough diamond, which has an almost amber hue, is estimated to between 120 million and 230 million years old.

The diamond is currently being held at Alrosa’s United Selling Organization, where it is being studied and evaluated by company specialists. The statement said it will shortly be decided whether to cut the stone in house, or to sell it as a rough.

“Of course, cutters in any country will be interested in such a diamond, as it has the potential to give several high-quality polished diamonds,” stated Pavel Vinikhin, the head of Alrosa’s cutting and polishing division.

WITH ARGYLE CLOSURE, ALROSA TAKES OVER THE NUMBER ONE SPOT

With the closure of the Argyle mine in Western Australia, Alrosa is expecting to become the world’s largest producer of color diamonds worldwide.

The company mines natural color rough diamonds mostly in north of Yakutia, as well as in the Arkhangelsk region in the northwest of the country. They represent less than 0.1 percent of the firm’s overall output, however, given their value in the market, they could develop into a valuable sideline.

A bright yellow gem-quality diamond weighing 17.44 carats was discovered in mid-February at the Zapolyarnaya kimberlite pipe, which is a new mine in the west of Yakutia, 170 kilometers from the town of Udachny.

Other significant fancy colored diamond discoveries by Alrosa include the 20.69-carat fancy vivid yellow Firebird Diamond and the Spirit of the Rose, a 14.80-carat fancy vivid purple-pink diamond

The 236-carat intense fancy yellow colored diamond, with almost an amber hue, recently discovered at the Ebelyakh mine in Yakutia. (Photo courtesy of Alrosa)

The bright yellow 17.44-carat stone was discovered in mid-February at the Zapolyarnaya kimberlite pipe. (Photo courtesy of Alrosa)

GOVERNMENT HELPS OUT DURING CRISIS

As it did during the global financial crisis in 2008 and 2009, Alrosa has kept up production at it mines, despite the dramatic fall in rough diamond exports from the country. In his respect it is seeking assistance from the government, and currently is negotiating with Gokhran, the state repository for precious metals and stones, over the sale of its rough. The state will store the goods until until the market stabilizes.

“It will be very important for our industry, because [it] will also provide the confidence to [the] midstream that [excesses of diamond stocks will be] limited,” Alrosa deputy CEO Evgeny Agureev told Rapaport News. “The government will not try to sell these goods in [the] short term.”

Alrosa’s rough diamond fell by 91 percent to to $74.1 during the quarter ended June 30, which is its lowest level in more than a decade. As a result, the number of goods held in its vaults rose 25 percent to 26.3 million carats

According to Agureev, Alrosa has contract customers to renege on purchase obligations and frozen prices since February to help maintain the value of manufacturers’ and dealers’ diamond stocks. He told Rapaport that it will continue doing so until the situation in the market improves.

SEARCH DIAMONDS