1957–1967: Beginnings

The almost 60-year history of our company can be divided into several important periods.

The first covers the years of development, and the establishment of the industry and its structure.

Yakutalmaz Trust was created in 1957 in the tent village of Mirny, next to the Mir kimberlite pipe. The same year, it produced the first industrial diamonds. Two years later, it began to supply them abroad under a contract agreement with De Beers Corporation.

Initially, rough diamonds were produced from the Mir kimberlite pipe and adjacent placers. Despite the challenges of working in the remote taiga – such as winter temperatures down to minus 60 degrees, no roads, and extreme distances to industrial centres – nothing stopped the early explorers. Indeed, they drove even further north. In 1961, they began developing the Aikhal pipe – located almost at the Arctic Circle – where living and working conditions were even more severe than in Mirny. During this period, major mines were opened in Western Yakutia. Processing plants and housing settlements, roads and airports were built, and a specialized research and design institute was created. To supply energy to the plants and open-pit mines, these pioneers built the world’s first hydroelectric power station on permafrost, 100 kilometres from Mirny. In 1966, to recognise the scale of these achievements, Yakutalmaz Trust was given the highest award in the Soviet Union: the Order of Lenin.

Major events of these years:

• 1957 – Yakutalmaz Trust created; Processing Plant No. 1 produced first industrial diamonds
• 1960 – Aikhal pipe discovered; Dredge No. 201 commissioned
• 1966 – First rough diamonds obtained at Processing Plant No. 3, in Mirny
• 1967 – First stage of Vilyui HPP begins operation

1968–1978: Early growth

This was a period growth in both production and also geographical expansion. The main focus was on Plant No. 3 and the Mir open-pit mine in Mirny. However, the operation was also developing the northern platform. Work began on the Udachny mine, 60 kilometres from the village of Aikhal, on the Udachnaya pipe. First came Plant No. 11, which started producing rough diamonds in August 1967. Then, work began on the major construction of the Udachny Mining and Processing Division and Plant No. 12. Construction was completed in just five years – a record-breaking achievement. Along with the plant, the company also built a comfortable settlement fully supported by infrastructure, Novy Gorod (New Town).

In 1971, ore mining began 18 kilometres from Mirny at the Internatsionalnaya pipe, one of the richest diamond deposits in the world

Major events of these years:

• 1967 – Udachny mine created, with the first rough diamonds obtained at Processing Plant No. 11
• 1969 – Yakutalmaz Trust reorganized into an association
• 1975 – Yubileynaya pipe opened
• 1976 – First stage of Udachny Mining and Processing Division began operation

1979–1992: Rapid development

This phase saw fast development of diamond mining in Aikhal and Udachny, along with increased production of mining equipment.

The company set new records for daily and annual productivity of excavators and drilling rigs, in the plants and mines of Yakutalmaz. We also saw the rapid implementation of new technologies, in particular X-ray luminescent separation. Indeed, the slogan ‘More Rough Diamonds for the Motherland!’ was coined and became well known during these years.

The company created the Aikhal Mining and Processing Division to expand the diamond production in Aikhal, with the opening of the major new Yubileynaya pipe. In February 1987, the Yakutalmaz Production Association was reorganized into the Yakutsk Production and Research Association Yakutalmaz, incorporating the construction organisations of the former Vilyuyigesstroy administration.

Towns and villages in Western Yakutia were modernized, thanks to the commissioning of the panel construction plant in Mirny. Mirny began to use local gas for heating, while sewage treatment and other environmental protection facilities were built. Automation, computer science, and communications were also developed.

Major events of these years:

• 1978 – Mirny Geological Expedition established
• 1986 – Aikhal Mining and Processing Division created
• 1987 – Yakutalmaz association reorganized into a production and research association
• 1991 – Mirny Mining and Processing Division created

1993–2008: Into the market economy

These were the years of establishing and developing the enterprise as a joint stock company in the market economy. In 1992 Yakutalmaz Production and Research Association, and a number of state organizations, were consolidated into a single joint-stock company – ALROSA. And so, the fourth phase of our history began.

There was also an organizational restructuring in the 1990s. DiamondCenter and Almazexport were created in Moscow, and then the United Selling Organization. The Diamond Trading Company was established in Yakutsk. Since then, the company not only produces rough diamonds, but also sorts and sells them in both domestic and global markets. In fact, we created a proprietary system for sorting and evaluating rough diamonds, training expert personnel to fill these roles.

We created subsidiaries to cover both basic production, and also cutting and polishing. Production capacity grew; a mining and processing division was established on the Yubileynaya deposit; and we commissioned the first underground diamond mine in Russia, on the Internatsionalnaya pipe. Towards the close of this period, we made a significant and ambitious change to our industrial policy, starting construction of underground mines on the Mir, Udachnaya and Aikhal pipes.

Major events of these years:

• 1992 – ALROSA Company Limited (Closed Joint-Stock Company) created
• 1997 – Joint enterprise Catoca Ltd. Mining Co., in Angola, produced its first rough diamonds
• 2003 – Commissioning of Processing Plant No. 16 on the Nyurbinskaya pipe; operations of Nyurba Mining and Processing Division began
• 2005 –OJSC Severalmaz subsidiary began mining rough diamonds in Arkhangelsk region

2009: Full independence

Due to the implementation of the anti-monopoly law, in 2009 the European Commission terminated ALROSA’s partnership with De Beers. Since then, we have built our own long-term sales policy, to sell our products on the global market independently. In recent years, there has also been a continuing transition to underground mining, and we remain focused on expanding our mineral resources base. For example, we commissioned the Mir and Aikhal underground mines, and have started developing the Botuobinskaya kimberlite pipe.

In 2011, the company was transformed into a joint-stock company, and its shares were admitted to free circulation on the financial market.

The story continues. It is being written by those who choose the hard work of a diamond miner as their profession: from underground workers, to geologists, to mineral engineers. Indeed, many great people have worked in our company in different periods. Here are their stories.