EL7.AI
CommoditiesMedium•10 November 2026•
3 min read

ALROSA halts mining at low-profitability sites, sees output falling to 25 million carats

Key Facts

1ALROSA expects 2026 output to fall by 13% to 16%, to 25 million to 26 million carats.
2Almazy Anabara accounts for 11% of ALROSA group output.
3ALROSA revenue fell 33% to 91.7 billion rubles in the first half of 2026.
4Free cash flow was negative 16.9 billion rubles in the first half of 2026.

ALROSA has suspended mining at several low-profitability sites to cut costs, Chief Executive Pavel Marinychev said on Monday, November 9, 2026. The sites include operations run by the group’s subsidiary Almazy Anabara, which accounts for 11% of its diamond output. The move comes as the company expects its 2026 output to fall by 13% to 16%, to a range of 25 million to 26 million carats. ALROSA cut output by 10% in 2025 to 29.8 million carats. The company accounts for about 30% of the global diamond market, according to Reuters, making the production cut a significant development for a major supplier in the sector.

The financial results reflect pressure from the diamond market on the company ahead of the mining suspension announcement. ALROSA’s revenue, including subsidies, fell 33% year on year in the first half of 2026 to 91.7 billion rubles. The company attributed the decline to a weak market, as well as a stronger ruble, higher interest rates and inflation in Russia. Earnings before interest, taxes, depreciation and amortization fell 61% to 14.3 billion rubles over the same period. Free cash flow was negative 16.9 billion rubles in the first half and negative 33.2 billion rubles in the 12 months preceding the November 9 report.

ALROSA plans to transfer most of its permanent employees and some fixed-term contract workers from the suspended sites to other locations, according to RBC. Destinations include gold mines in Yakutia and Magadan, the report said. The transfers will allow workers to be redeployed within the group while operations at the less profitable sites are suspended. ALROSA has been under Western sanctions since 2022, as it works to cut costs amid a weak diamond market. Marinychev said the company had seen global diamond prices rise for the first time in three years. ALROSA also raised prices for large stones three times during 2026, according to his comments cited by RBC.

The production recovery outlook reported by Reuters depends on market stability, with ALROSA forecasting output of 29 million to 30 million carats if that occurs. The company did not specify a timeline for the recovery in the reported comments. This range follows its 2026 output forecast of 25 million to 26 million carats, after it cut 2025 output to 29.8 million carats. The company recorded negative free cash flow in the first half and over the 12 months preceding the report. The mining suspension at low-profitability sites is part of the cost-cutting measures announced by management on November 9.