The government propose to diversify the work of the diamond mining company ALROSA through the mining of gold and other metals. The corresponding order was given by Deputy Prime Minister Yuri Trutnev. In terms of coronavirus sales of the company dropped significantly and even by the end of may, when the market improved somewhat, is still seven times inferior to the sales of may last year. Another method of support might be purchase of raw material to the state Depository $1.7 billion requested Yakutia as a shareholder of the company.Vice-Premier, the presidential envoy in the far East Yuri Trutnev suggested that ALROSA to diversify its activities through the development of deposits of metals, including gold and lithium, reports TASS with reference to the assistant of Deputy Prime Minister. The announcement was made at the meeting on socio-economic development of Yakutia, where ALROSA (the Republic and its districts are also major shareholders of the company). Mister Trutnev has instructed the Ministry of Finance, Ministry of environment and the government of Yakutia to develop and submit proposals for diversification of activities of the company.CEO of diamond mining company Sergei Ivanov told the meeting that the volume of diamond production in January—April amounted to 43.1% for the same period of 2019. June 10, ALROSA reported that may sales totaled $40.1 million Is higher than in April ($15.6 million) when the company first allowed clients to withdraw from the purchase contract due to the rough, but almost seven times below the result of may last year ($226 million).In addition, ALROSA announced the temporary suspension of production on low-profit deposits of the Aikhal and the dawn, representing 7% of production of ALROSA.Support the company can provide to the state: Yakutia, ALROSA as a shareholder, asks to buy diamonds to Gokhran $1.7 billion this year. This amount exceeds half the annual revenue of the company. The Finance Ministry does not rule out the possibility of such purchases, but I’m going to make a decision in the second quarter after monitoring the status of ALROSA and the prospects for recovery in the diamond market.Eugene Zimulinda of diamonds ALROSA in April was $15.6 million, which is ten times below the level of March. Thus, for the first four months of the company’s sales declined by $400 million compared to the same period last year. In ALROSA have concluded almost complete stop of sales, but expect the market recovery to the beginning of the third quarter. On the background of the increasingly topical question of purchase of diamonds to Gokhran, which to a significant extent in recent times was made in 2009.Read more
