The Alrosa Group's diamond production was 16% higher in Q1 2011 than in the corresponding quarter last year, according to final figures published this week by Russia's state-owned diamond producer.

Alrosa produced 10 million carats of rough diamonds in Q1, compared to 8.6 million carats of rough in Q1 2010.

While the company's quarterly operating profit remained steady year-on-year, its net income for Q1 rose 21%.

In related news, Alrosa last week confirmed that miners working for Alrosa subsidiary Udachninsky Mining Company had discovered a diamond weighing over 136 carats in a mine in the Yakutia province of Siberia.

The stone is described as "irregularly" shaped with a honey-yellow color. The diamond has not yet been appraised, and Alrosa has not announced any plans for it.