DiamondBuzz
Alrosa is betting on AI to uncover diamond deposits
Russia’s diamond giant Alrosa is betting on artificial intelligence to uncover deposits that have long eluded geologists.
The company revealed last week that it has created a digital system designed to pinpoint exploration zones with far greater precision, potentially reducing both the cost and the time traditionally required for diamond prospecting.
Explaining the rationale behind the initiative, Alrosa noted that most of the planet’s major kimberlite pipes—the richest sources of diamonds—were discovered decades ago. Since then, fresh finds have become increasingly rare.
The new platform draws on more than half a century of geological records, processing the data through neural network models to highlight areas still holding promise. Executives say the approach could mark a breakthrough in locating mineral resources.
Alrosa’s move comes amid mounting financial strain. Western sanctions, particularly from the G7, have curtailed the company’s sales channels, forcing temporary mine closures, a reduction in output, and even the transfer of unsold inventory to state reserves. Against this backdrop, the AI initiative signals both an urgent need for innovation and a long-term play to secure future resources.
DiamondBuzz
Lesotho’s Kao Diamond Mine To Halt Operations Amid Industry Slump
The Mine’s Operator, Storm Mountain, Cited A Severe Financial Crisis Driven By A Prolonged Drop In Global Rough-diamond Prices, Rising Middle East Conflict
Lesotho’s largest diamond mine, Kao, will cease operations on June 30 and transition to care and maintenance. The mine’s operator, Storm Mountain, cited a severe financial crisis driven by a prolonged drop in global rough-diamond prices, rising Middle East conflict-related fuel costs, and stiff competition from lab-grown diamonds.
Despite a warning last October that the mine required $13 million in fresh capital to survive, the necessary investment did not materialise. According to CEO Neo Hoala, the steep market decline made continued operations unsustainable. The shutdown will impact roughly 750 workers.
The mine’s financial downturn is stark: in 2024, Storm Mountain sold 250,000 carats for $50 million—a massive drop from its $105 million revenue in 2022. Kao’s suspension reflects a broader crisis in the diamond sector, following recent insolvencies and closures at Canada’s Ekati mine and South Africa’s Ekapa and Finsch mines.
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