Alrosa has confirmed that it is suspending production at its low-margin mines amid what it calls a “deep crisis” in the industry. The sanctioned Russian miner said last November it was considering such a move, but would wait and see what happened to rough prices.

Mining at the Verkhne-Munskoye deposit’s Zapolyarny and Magnitny open pits will now be suspended from June 15, and at alluvial deposits in the Anabar River valley – Khara-Mas and Ochuos, operated by Alrosa’s subsidiary Almazy Anabara – from April 1.

The suspension of activity at all deposits producing under 1m carats will reduce direct costs by $107m (RUB 9bn) during the year, the company said in a statement. They account for 3 per cent of Alrosa’s total output.

Alrosa also said forecast production for 2025 would remain unchanged at 29m carats. Ore already mined at the smaller deposits would ore mined at the deposits continue to be milled until next year, it said.

Earlier this month Alrosa reported a 77 per cent slump in profits for 2024 (down to $223m) after G7 sanctions were tightened last March to include Russian goods regardless of where they were cut and polished. The company has said it could lay off some of its 35,000 workers and ii is expected to offload more of its diamonds to Gokhran, the state-run depository.