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ALROSA’s Severalmaz ramps up output as Karpinsky-2 diamond pipe enters development

Russian diamond giant ALROSA has begun full-scale development of the Karpinsky-2 kimberlite pipe at the M.V. Lomonosov diamond field in the Arkhangelsk region, marking a major step forward for its local subsidiary, Severalmaz. Karpinsky-2 becomes the third active pipe at the site, alongside the existing Arkhangelsk and Karpinsky-1 operations.

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Karpinsky-2 holds more than 40 million tonnes of diamond-bearing ore and was first evaluated in 2018 through pilot mining operations, which confirmed its commercial viability. Preparatory work for full development began earlier this year, and the project officially moved into the design phase during a recent visit by ALROSA CEO Pavel Marinychev.

Marinychev, who personally launched the design stage, also assessed Severalmaz’s performance for 2025 during his visit. In the first five months of the year, the company surpassed its ore extraction targets and improved operational efficiency, resulting in a 9.4% increase in ore processing. These gains translated into the production of more than 1.2 million carats of rough diamonds.

The CEO also reviewed progress on a new water recycling system at the Lomonosov processing plant and emphasized the importance of completing a gym facility for workers at the shift village by year-end, highlighting the company’s focus on both sustainability and employee well-being.

“I am sure that the work of the Severalmaz team will drive the enterprise’s continued growth. We remain committed to providing safe working conditions and contributing to the development of the Arkhangelsk region,” Marinychev stated.

ALROSA, which produces about 30% of the world’s diamonds and 90% of Russia’s output, reported production of 33 million carats in 2024. The company’s proven reserves exceed 1 billion carats, solidifying its position as the global leader in diamond mining.

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DiamondBuzz

De Beers Group Sets Out Portfolio and Organisational Actions to Support Long-Term Value Creation

Company outlines strategic cost optimisation, portfolio streamlining and operational changes to strengthen resilience while positioning for long-term growth in the natural diamond industry.

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De Beers Group is advancing delivery of its business streamlining by setting out a number of planned portfolio and organisational changes to ensure an efficient cost base that strengthens resilience in the near-term while enhancing future competitiveness and retaining optionality as industry conditions improve.

Since 2024, De Beers has been streamlining its business in line with its Origins strategy to reduce costs, divest non-core assets and prioritise investment in activities that create the most value. Significant progress has been made, with more than $100 million of annual overhead costs removed from the business, the sale or closure of a number of non-core assets and significant capital and cost reconfigurations to asset expansion projects.

Simultaneously, De Beers has reinvested in natural diamond category marketing to support the industry’s efforts to grow natural diamond demand, launching new large-scale campaigns and collaborating with key stakeholders across the value chain to foster industry-wide investment. Global consumer demand for natural diamond jewellery returned to growth in 2025, while natural diamond sales increased across US independent jewellers in 2025 and into Q1 2026, led by higher value diamonds and those promoted by De Beers’ Desert Diamonds marketing campaign.

On the supply side, global rough diamond production is now decreasing, with several producers closing mines during 2026. Whilst the increasing rarity of diamonds and the emerging signs of improvement in consumer demand are likely to support longer-term value creation, rough diamond trading conditions are expected to remain challenging in the near-term due to cyclical and industry-specific factors.

Consistent with recent actions to improve business resilience, De Beers intends to pause production at the Venetia mine in South Africa for two years to reduce costs while also rephasing capital expenditure on its underground project. This will involve critical infrastructure investment to enhance the capacity and efficiency of the mine, with the intention to support future production growth as business and industry conditions improve.

De Beers is engaging with stakeholders in accordance with relevant requirements and the company’s values as it moves through this process, and will both support impacted employees and continue to invest in its community and Social and Labour Plan commitments.

This proposed action at Venetia Mine follows the decision earlier this year to pause the Tuzo Phase 3 expansion project at the Gahcho Kué Mine in Canada.

In parallel, De Beers plans to reconfigure its global operating model to refocus and prioritise resources on the core operational businesses and reduce its central corporate cost base.

Al Cook, CEO of De Beers Group, said:

“In line with our commitment to focus and streamline our business, we are making a number of changes to De Beers to ensure greater business resilience in the near-term, while supporting long-term value creation. We recognise the protracted challenging conditions as the diamond industry evolves, though we are encouraged by signs of consumer demand growth in the US and beyond, particularly in higher quality diamonds.

Global rough diamond supply is falling, bringing more support to the market. The changes we are making to our business are focused on underpinning our efficiency now and into the future, favourably positioning De Beers in its leadership role.”

De Beers Group will maintain current production levels through its other operations, and previous production guidance remains unchanged.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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