Rough diamond production on the republic of Yakutia in Eastern Russia in terms of weight has dropped 9 percent in the first six months of 2005, a source in Yakutia's Industrial Ministry told Interfax.

According to this report, the decision to reduce the physical volume of rough diamond output was made by Alrosa leadership due to both the increase in diamond extracting costs in mines, and the rise in listed prices.

In monetary terms, the volume of rough diamond production was 11.4 percent higher year-on-year in the first half of 2005. Uncut diamonds in total worth of US$649.4 million were supplied outside of Yakutia, a 54.8 percent increase as compared to the first half of 2004.

A total of US$2.3 billion worth of rough diamonds is expected to be produced in the republic in 2005.