Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The world’s top diamond miner by output, Alrosa (MCX: ALRS), announced that it has started working on a plan to create a single production framework encompassing all of its cutting and polishing facilities.
In a press release, the company said that the integration plan is based on the strategy for the development of its cutting and polishing complex, which seeks better rough diamond allocation along with streamlined production processes.
This means that by 2021, Alrosa’s cutting and polishing assets, namely Diamonds Alrosa in Moscow, Diamonds Alrosa LLC in Barnaul and Kristall Production Corporation in Smolensk, will form a single organizational and legal structure.
“The goals are twofold: first, to make sure that diamond output is allocated more efficiently among the sites, and second, to facilitate the sharing of practices,” the media brief states. “In addition, the facilities are going to provide backup to each other in case the epidemiological situation in one of the regions gets worse.”
The miner also said that Dmitry Amelkin, who was appointed transformation director of Alrosa’s polishing division in the spring of this year, will lead the integration process.
