Alrosa, the world’s largest diamond miner, warned that global supplies of the precious stone would remain tight for several years because of mine closures and a dearth of new projects.
Evgeny Agureev, deputy chief executive of the Russian group, said Alrosa’s inventories had hit historic lows as demand rebounded from last year’s Covid-19 disruptions.
“Our industry will work with limited supply,” he told the Financial Times. “There are projects, but these projects will not provide goods next year or the year after.”
Lockdowns and weak demand last year prompted diamond miners to slash production by about 20 per cent, according to Bain. Large pits — including Rio Tinto’s Argyle mine in Australia which produced a 10th of global supply before it shut in November last year — have also closed.
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