ALROSA, Russian mining giant, reported a drop in production during the quarter ended September 30, 2014, with output from its mines falling about 2% from 9.949 mn carats in Q3 2013 to 9.737 mn cts in the same period this year. Cumulative nine month total production dropped 5% from 27.056 mn cts last year to 25.655 mn cts this year.

While production was up 21% compared to Q2 2014, this was largely on account of resumption of ore processing at the Aikhal underground mine which had been suspended in Q2 due to planned overhaul at Processing Plant No. 8.

The 9M production decrease was mainly driven by the reduction in ore processing at the Udachnaya pipe which is making the transition to underground mining as per the Company’s plan.

However, ALROSA’s sales in the first nine months of the year were 28.8 mn cts with revenue rising by 8% year-on-year to reach $3.7 billion.

In the last quarter, the company sold 7.6 mn cts of diamonds, including 5.3 mn cts of gem-quality diamonds with an average price of $182 per carat, and 2.3 mn cts of industrial diamonds with an average price of $16 per carat.

In a statement, ALROSA notes that the production increase was driven by the seasonal production growth at the alluvial deposits, increase in volumes of ore processing at the Aikhal underground mine following the completion of Processing Plant No. 8 overhaul, and the production ramp-up at Severalmaz in accordance with the Company's plan.

On the other hand, revenue was boosted by rough diamond prices going up by around 7% since the beginning of the year.

ALROSA has multiple mining sites with open-pit mining accounting for 58%, underground mining 17% and alluvial mining 25%.