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Russian government could buy rougher from Alrosa

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The Russian government could buy more rough diamonds from the state-run miner Alrosa, as it faces ongoing G7 sanctions and weak global demand.The Finance Ministry says it will assess the situation after seeing second quarter results.Alrosa last week reported a 77 per cent slump in profits for 2024 (down to $223m) and has said it could suspend some less profitable activities and lay off some of its 35,000 workers.

In December 2024, ALROSA, Russia’s leading diamond mining company, reached an agreement to sell a batch of rough diamonds to the Gokhran of Russia, the state repository for precious metals and gemstones. This batch included a notable 390-carat diamond, the largest discovered in Russia over the past decade, unearthed from the Ebelyakh deposit in Yakutia in September 2023.

This transaction occurred in the context of ongoing international sanctions and a global downturn in diamond demand, which have impacted ALROSA’s traditional sales channels. The Gokhran’s purchase provided financial support to ALROSA during these challenging times.

The Russian government has indicated plans to continue such purchases, with the federal budget allocating up to 154.5 billion rubles (approximately $1.55 billion) for acquiring precious metals and gemstones for the Gokhran between 2025 and 2027. Alrosa has previously offloaded excess inventory to Gokhran, the Russian State Precious Metals and Gemstones Repository in times of weak demand.

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DiamondBuzz

De Beers opens flagship store in Dubai Mall

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De Beers has unveiled its new flagship boutique in Dubai Mall, marking a significant expansion into the UAE in partnership with Chalhoub Group. Rooted in over a century of diamond expertise, the store showcases the brand’s iconic collections—including Talisman, Enchanted Lotus, and RVL—alongside one-of-a-kind high jewellery pieces. Inspired by nature and blending Southern African heritage with London design, the boutique offers a luxurious, immersive space that celebrates De Beers’ legacy and craftsmanship.

Drawing on diamond expertise stretching back to 1888, the jewellery house marks life’s gradual evolution with meaningful creations. Just as rough diamonds are transformed into exquisite De Beers jewellery, the house honours the heartfelt moments, big and small, that define who we become.

Situated on the ground floor of the prestigious Dubai Mall in downtown Dubai, the new boutique takes design cues from the De Beers flagship on London’s Old Bond Street. Resplendent in the house’s signature shades of blue, white and orange, the furnishings and decorations have been chosen to represent locations close to De Beers’ heart. The boutique is designed to foster connections between clients and Brand Ambassadors, with a combination of open-plan space to explore the collections and intimate private areas. A bespoke lighting system was developed to showcase the fire, life and brilliance of each De Beers diamond.

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DiamondBuzz

Rio Tinto records 27% y-o-y rise in output for  Q1 2025 primarily driven by Diavik diamond mine

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Rio Tinto reported a significant 27% year-on-year increase in diamond production for Q1 2025, reaching 942,000 carats compared to 740,000 carats in Q1 2024. This growth was primarily driven by operational improvements at the Diavik diamond mine in Canada’s Northwest Territories, Rio Tinto’s sole operating diamond asset. The strong quarterly performance marks a robust recovery after a volatile 2024, positioning the diamond division for a stronger 2025.

The Diavik mine processed 394,000 tonnes of ore in Q1 2025, up from both Q1 and Q4 2024, reflecting enhanced operational efficiency and throughput. The Q1 2025 output is a marked rebound from the 542,000 carats produced in Q3 2024, when production was hampered by temporary mine closures due to safety concerns.

The Diavik mine is currently Rio Tinto’s only diamond-producing asset, following the closure of the Argyle mine in Australia in 2020.

The surge in output is attributed to: Successful ramp-up of underground mining at the A21 pipe, following the completion of the first phase of development. Increased ore processing volumes and improved operational efficiency. Recovery from previous disruptions, including a temporary shutdown in Q3 2024 due to ground instability in the A154 underground region.

The extension of Diavik’s mine life signals confidence in the long-term fundamentals of the diamond industry, even as global supply and demand dynamics remain volatile.

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DiamondBuzz

Beyond Shining Illusions video : hidden truths behind diamond mining in Sierra Leone, Lesotho, DRC

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The video Beyond Shining Illusions, released by the Kimberley Process Civil Society Coalition (KP CSC), offers a powerful and eye-opening look at the often hidden truths behind large-scale diamond mining in countries such as Sierra Leone, Lesotho, and the Democratic Republic of Congo. Through real stories and interviews with local people, the video challenges the claims made by the Kimberley Process (KP) and calls attention to the ongoing issues affecting mining communities.

Since its founding in 2003, the Kimberley Process has aimed to prevent the sale of “conflict diamonds”—those used by rebel groups to fund wars against legitimate governments. According to the KP, 99% of diamonds in the market today are “conflict-free.” However, the KP CSC argues that this definition is too narrow and outdated. While it may seem that the problem is almost solved, the video reveals that many serious problems still exist, just under a different name.

In the 17-minute documentary, we hear directly from people who live near or work in diamond mines. They talk about the violence they face from security forces that protect mining operations, as well as the health risks caused by pollution from blasting and waste management. The voices of these communities are usually not included in the shiny advertisements and positive messages often associated with diamonds.

What makes this video especially important is its mission to go beyond the surface and show the full truth. The KP CSC wants to broaden the definition of “conflict diamonds” to include harm caused by governments and corporations, not just rebel groups. They also want to highlight environmental damage and human rights abuses that are still happening today.

In conclusion, Beyond Shining Illusions is a necessary reminder that the beauty of diamonds often hides a painful and complex reality. we need to look beyond marketing messages and learn the full story behind the things we value. Only then can we support real changes that help protect people and the environment in mining communities around the world.

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