Alrosa's diamond production rose 16% in Q1 2011 compared to the corresponding quarter of 2010, according to preliminary figures released this week by Russia's state-owned diamond producer.

The early data indicates that Alrosa's rough diamond production rose from 8.6 million carats in Q1 2010 to 10 million carats in Q1 2011.

Operating profits are expected to remain nearly stable, while net income for Q1 is projected to rise 9% year-on-year.

At the end of March, Alrosa reported that its sales of rough and polished diamonds in Q1 2011 exceeded $953 million, noting high demand for rough product worldwide, especially in emerging diamond markets such as India and China.