Russia’s Alrosa (MCX:ALRS), the world’s top diamond miner by output, has found a 17.4-carats bright yellow gem-quality precious rock at its new Verkhne-Munskoye deposit in Yakutia, which started operations in 2018.
The diamond, recovered in mid-February from the Zapolyarnaya kimberlite pipe, is the first large coloured one found at the site, the company said.
Alrosa, which did not disclose the
estimated value of the diamond, said it would be assessed and evaluated by its
experts in coming days.
The 17.4-carats bright yellow gem-quality stone was unearthed at the Verkhne-Munskoye deposit.
Diamond miners and traders have
been hit hard in the past year by weak market conditions. These factors have
taken a major toll on producers of small stones due to an oversupply in that
segment.
De Beers, reported Thursday its
worst set of earnings since Anglo American (LON:AAL) acquired it in 2012,
The world’s No. 1 diamond miner by
market cap said demand for rough diamonds from polishers and cutters was weak
last year due to the impact of US-China trade tension and the closure of US
retail outlets. Many companies in the so-called midstream are struggling to
obtain financing, it said.
Alrosa believes the situation is
about to change as it’s already seeing the first signs of stabilization in the
sector.
Increasing demand for synthetic
diamonds has also weighed on prices. Man-made diamonds require less investment
than mining natural stones and can offer more attractive margins.
Industry consultant Bain & Co.,
however, believes that while glut that’s depressing the diamond market will
probably be cleared early this year, it will take at least another 12 months
for the market to fully recover.
“The industry’s first and strongest
opportunity to rebalance and regain growth will be 2021,” said Bain in a report released in December, adding that supply could
fall 8% that year.