Mirny, April 17, 2019 - ALROSA, the world’s largest diamond mining company, launched diamond production at Zarya pipe, Aikhal Mining and Processing Division. The new deposit’s expected life exceeds ten years.

The development of Zarya primary diamond deposit of Aikhal Mining and Processing Division is one of the Company’s major investment projects with the total investment of RUB 12 billion. The appeal of investing in the deposit is also driven by the fact that there is no need to build a new mining and processing division and a plant. Zarya pipe is located in the operational zone and 3 km from Aikhal Mining and Processing Division.

The new deposit will allow compensating for the depleting stock of Komsomolsky open-pit mine and looking forward it will ensure stable mining for the division. In 2021, according to the development roadmap of Aikhal Mining and Processing Division the enterprise is to reach the design capacity of 1.25 million tons of ore per year and process rough diamonds at the Plant No. 14. The plan is to mine the first 100 thousand tons of kimberlite ore in 2019. The expected mine life is 11 years, the mine depth–300 meters.

A command for the first industrial explosion of kimberlite ore was given by the Head of the Republic of Sakha (Yakutia) Aysen Nikolaev and ALROSA CEO Sergey IVANOV as part of ‘Khozaktiv-2019’–a forum for ALROSA’s active functionaries held annually in Mirny (Yakutia). Director of Aikhal Mining and Processing Division Evgeny Denisov, Adviser to ALROSA CEO Ravil Sanatulov, representatives of Aikhal Mining and Processing Division, and many others attended the official ceremony via teleconference.

“It is a landmark event for both ALROSA and our country. It is already the second deposit launched in Yakutia in such a short span of time, which demonstrates mineral wealth of our homeland and enormous potential of our company,” noted Sergey IVANOV.

“The diamond industry is a major contributor to the economy of our Republic. Revenue from production and sale of rough diamonds allows us to make up the budget and keep an appropriate level of social guarantees. This is why we are always looking forward to the news from ALROSA and are always gratified by the success of diamond miners. Which is more, the new deposit Zarya is also a socially important project, new jobs for the citizens of Yakutia,” said Aysen Nikolaev.

The preparatory stage to launch diamond mining at Zarya pipe started in 2016 and took almost 3 years. Tremendous job was done in this period: removal of 14 million cubic meters of overburden, building of a roadway, hydraulic engineering structures and infrastructural facilities, purchase of technical equipment. All works in the open-pit mine are carried out in compliance with all labor protection and occupational safety requirements and norms.

Reference:
Aikhal Mining and Processing Division, established in 1986, mines rough diamonds at open-pit mines Yubileyny, Komsomolsky, and underground mine Aikhal. Its share in ALROSA Group’s total diamond output is 30%. Following the results of 2018, Aikhal Mining and Processing Division mined almost 12 million carats worth of more than USD 1.2 billion. The division employs more than 4,500 people.