At the meeting held on March 26, ALROSA’s Executive Committee considered matters relating to the development of the Udachny mining and processing division (MPD).

The Executive Committee considered the prospects of diamond mining at Verkhne-Munskoye and Zarnitsa deposits. The development of these deposits is a part of the company’s long-term development program that envisages the increase of production to 41 million carats.

In particular, the Executive Committee examined different options of Verkhne-Munskoye field’s development. The accepted project provides building of a new diamond mining enterprise with annual capacity of 3 million tons of ore; ore processing will take place at the Udachny MPD’s processing plant ¹12. The ore will be transported by all-season road using road-trains.

The Executive Committee decided to set up and approve the program of construction of diamond mining facilities at the deposit in the first half of 2015.

Verkhne-Munskoye primary deposit is located in 160 kilometers from Udachny MPD. It consists of four kimberlite pipes with aggregate mineral reserves of 65 million tons of ore.

According to the current production plan, mining operations at the Verkhne-Munskoye will start in 2018 and reach its design capacity in 2019.

The Executive Committee also examined options of ore transporting from Zarnitsa pipe to the processing facilities of Udachny MPD in view of planned increase of mining operations. The decision is to transport the ore using line-haul trains.