Large diamond miner, ALROSA, slashes taxes while hunting for fresh income sources
In the face of a weak global diamond market and sanctions, ALROSA, a significant contributor to Yakutia's economy, is diversifying its business to secure its future. The Russian diamond mining giant is looking beyond diamonds, focusing on exploration and development in oil, gas, gold, and polymetallic resources, primarily in Yakutia and other regions of Russia.
According to reports, ALROSA missed out on 6 billion rubles in diamond revenues. To counteract this, the company is investing in new projects. These include studying oil and gas fields with Sahatransneftegaz and planning gold mining with Rosatom. ALROSA is also venturing into polymetallic exploration in Yakutia, seeking lead, zinc, and copper deposits.
The total amount of contractual obligations for capital investments has exceeded 37 billion rubles for these diversification projects. Increased capital expenditure is necessary to drive these ventures forward. If ALROSA's own revenue decreases, it may require additional loans to fund these projects.
Promising polymetallic signs have been found in the Mirny District and adjacent areas. In response, ALROSA will allocate funds for detailed resource analysis to assess reserves in the polymetallic exploration.
The general director of ALROSA is Pavel Marynychov. Under his leadership, ALROSA has acquired the Magadan geological exploration enterprise from "Polyus", which holds the license for the Degdekansky ore field with gold reserves of approximately 100 tons.
However, the success of these new diversification projects is crucial, but their outcome remains uncertain. Exports of diamonds from Russia to India decreased by 43%, and tax revenues from resource users in Yakutia decreased by 4%, amounting to a shortfall of 1,464 million rubles. A coal shortfall of approximately 700 million rubles was also reported.
Despite these challenges, ALROSA's annual social program, which supports about 100,000 residents of the republic, costs 8.5 billion rubles. The company's commitment to its community remains steadfast, even in challenging times.
As of 2025, ALROSA is actively pursuing diversification beyond diamonds. Continued monitoring of ALROSA’s reports and Russian resource sector developments is needed for precise updates on the progress and outcomes of these ventures.
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