Doubling corporate tax cuts, but hunting for alternative income streams - ALROSA's new strategy revealed
ALROSA, a key player in the diamond industry, is facing a revenue decrease due to the weakness of the global diamond market. In response, the company is diversifying its business, with a focus on expanding into gold mining in Yakutia and neighbouring regions [1].
The leadership in Yakutia has emphasised gold mining as the main priority within ALROSA's diversification efforts, signalling a strategic move to explore new mineral assets beyond diamonds. By investing in gold and potentially other polymetallic deposits, ALROSA is positioning itself to mitigate risks associated with fluctuations in diamond demand and prices [1].
The company's diversification may enhance its financial stability and future prospects by broadening its mining portfolio and revenue streams. This is particularly relevant at a time when the diamond market faces significant challenges globally.
ALROSA has acquired the Magadan geological exploration enterprise from "Polyus", which owns the license for the Degdekansky ore field with gold reserves of about 100 tons. The company is also considering extracting other minerals, but a previous attempt to extract iron ore was unsuccessful [1].
In addition to gold, ALROSA is investigating the Uluğur and Ergedey deposits with Sakhatransneftegaz for oil and gas. The company is also investing in polymetallic exploration in Yakutia (lead, zinc, copper) and has found promising polymetallic signs in the Mirninsky District and adjacent areas [1].
ALROSA plans to start its own gold mining in Chukotka, in partnership with Rosatom. The company's social program in Yakutia, which affects about 100,000 residents of the republic, costs 8.5 billion rubles annually [1].
However, the outcome of ALROSA's new diversification projects is yet to be determined. The company's own revenue may require additional loans to be attracted due to the decline in ALROSA's revenue, which fell by another 24% to 116 billion rubles in the first half of 2025 [1].
In Yakutia, tax revenues from resource users to the budget decreased by 1,464 million rubles (4%) in 2024, mainly due to diamonds and coal. The republic missed out on 6 billion rubles in diamond tax revenues [1].
Despite these challenges, ALROSA's diversification strategy could potentially strengthen its financial position and reduce dependence on the volatile diamond market, providing a more secure future for the company.
[1] Source: Various reports and press releases from ALROSA and regional authorities.
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