ALROSA CEO Steps Down Amid Health Concerns
Russia’s largest diamond producer, ALROSA (MCX:ALRS), announced its Chief Executive Officer Fyodor Andreev is stepping down from his position after revealing health concerns.
The decision was announced Monday at the company’s weekly management meeting.
“Andreev’s decision leaves the company and its investors in a very vulnerable position as it’s not clear yet who will be the next CEO and what will be the strategy,” George Buzhenitsa, an analyst at Deutsche Bank AG, said.
According to ALROSA, Ilya Ryashchin, a first vice-presient, will become acting CEO.
Andreev, 47, joined ALROSA in 2002, serving as First Vice-President, economics and Finance until 2003. He was appointed CEO on July 15, 2009.
Under his management, the company went public on the Moscow Stock Exchange in October 2013. ALROSA also sold $1.3 billion shares to investors in October including Oppenheimer Funds Inc. and Lazard Ltd’s asset-management unit.
Although the resignation of Andreev is surprising, he will continue to take part in governance as a member of the Supervisory Board.
ALROSA fell 3.6 percent to 37.08 rubles amid news of the resignation in Moscow.
Earlier this month, ALROSA announced it would begin expanding its presence in Asia, targeting both India and countries with a large Indian expat population. The company also announced its partnering a Zimbabwe-Russia joint venture company to prospect for diamonds in the southern African country.
ALROSA sold nearly $4.7 billion worth of diamonds in 2013.
Global iron ore production to recover by 5.1% in 2021
Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.
Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.
“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”
Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.
Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”