PJSC ALROSA, the world leader in diamond mining, will participate in the Second Eastern Economic Forum on September 2-3, 2016, as its official partner.
The Eastern Economic Forum is held annually in Vladivostok in accordance with the Decree of the President of the Russian Federation Vladimir Putin. The aim of the Forum is to promote the accelerated development of the economy of Eastern Russia and expand international cooperation in the Asia-Pacific region.
The Forum’s packed programme aims to give investors a better idea of our Far East’s rich potential and of the favourable conditions for investment in the regional economy. Business people from different countries will have the opportunity to establish direct dialogue with Russian companies, as well as with representatives of the federal, regional and local authorities, to make specific proposals for further to improve business climate and to outline targets for more productive cooperation. Vladimir Putin
ALROSA delegation, headed by the President Andrey Zharkov, will participate in the events of the Forum and represent a number of the Company’s investment projects, including:
- TIMIR is a strategically important project for the development of the South Yakutia region and the mining industry in whole. CJSC MMC Timir owns four licenses for the development of iron ore deposits in the Republic of Sakha (Yakutia) with total iron ore resources of 3.5 billion tons for open-pit mining. The key shareholders of Timir are EVRAZ and ALROSA.The TIMIR project started in 2008 when ALROSA Group acquired licenses for iron ore mining at four deposits in South Yakutia.In 2009-2012, ALROSA financed the design and survey work and ore dressing research, so today the investment plan is ready, and preparation for the construction is launched.In 2012, a controlling block of shares in CJSC MMC Timir was sold to EVRAZ Group that actualized in 2013 the design solutions previously developed by ALROSA and formed a new development strategy for Tayozhnoye GOK.The project is currently at the pre-investment development stage: the technical project has received the approval from the Central Development Committee of Rosnedra, a number of expert examinations have been conducted and positive conclusion has been received, research on ore preparation characteristics has been conducted, reserves have been confirmed, and procurement procedures have been held; the design of the development of the 1st stage of Tayozhnoye iron ore deposit has been completed, the project has received all necessary approvals. The total investment in the project is estimated at RUB 16-17 billion with a 2-year construction period. The investment program will be financed by two sources – the Federal Target Program and project financing by Vnesheconombank.
- Development of Verkhne-Munskoe diamond deposit in the Republic of Sakha (Yakutia). Development of Verkhne-Munskoe diamond deposit in the Republic of Sakha (Yakutia) is a strategic diamond mining project of ALROSA Group. Its implementation is aimed at increasing the Company’s capitalization and maintaining the achieved diamond production volumes.Verkhne-Munskoe primary deposit is located 160 km from Udachny Mining and Processing Division and consists of 4 kimberlite pipes with total reserves of about 65 million tons of C1 + C2 category ore. The deposit is planned to be developed as an open-pit mine.According to the current production plan, the start of diamond mining at the deposit is expected in 2018, and the designed capacity is to be reached in 2019. ALROSA’s planned investment is RUB 62.98 billion.On-balance reserves of diamonds of Verkhne-Munskoe ore field are estimated at 38.3 million carats. The field development period is until 2043. When implemented, this investment project will create 713 new jobs.Expected tax revenues and contributions from the project are estimated at RUB 46.4 billion over ten years, of which RUB 15.5 billion will go to the federal budget. The project’s contribution to the gross regional product will amount to RUB 5.84 billion. Commissioning of the diamond mining asset is planned in 2018, and the design capacity (3.0 million tons) is to be reached by 2019.
- Joint Stock Company Research and Production Enterprise Bourevestnik. Since 1959, Bourevestnik has been the largest Russia’s company to manufacture X-ray instruments and equipment for various purposes, instruments for medicine and environment.Meeting the needs of mining and industrial enterprises, research and other organizations for highly sophisticated and science-based equipment for the processing of diamond-bearing rock and minerals, studying the structure and composition of substances and materials due to the widespread introduction of innovation in all activities of the enterprise.Bourevestnik’s products have become widely popular over more than half a century due to comprehensive possibilities of the equipment, its reliability and high quality. The users of the products are leading research institutes and largest industrial enterprises in Russia and abroad.High proficiency of specialists, unique knowledge, profound experience, use of innovative technologies, extensive cooperation with leading research and production organizations, allow Bourevestnik to offer high-tech equipment that meets all the requirements of its numerous customers and corresponds to global state of art.
- Gas assets. ALROSA’s gas assets include Urengoy Gas Company LLC and CJSC Geotransgaz, which hold licenses for the exploration and development of gas and gas condensate fields in the Yamalo-Nenets Autonomous District.CJSC Geotransgaz operates within the territory of Beregovoye field located 100 km east of Novy Urengoy, the company is developing license areas of Valanginian gas condensate deposit and Cenomanian gas deposit. CJSC Geotransgaz entered into a three-year contract with Rosneft for the supply of gas. By 2018, the company is planning to increase the number of existing wells from 22 to 36, which will provide an annual production of 2.3 billion m3 of gas and 0.32 million tons of gas condensate.Urengoy Gas Company LLC operates within the territory of Ust-Yamsoveyskoye field bordering the western part of Beregovoye field. Mining is not currently underway, the project is at the prospecting stage. The investment program envisages the start of drilling of an exploratory well (Cenomanian), execution of a comparative feasibility study of the Cenomanian deposit (to select development options for the field), beginning of the development of Cenomanian and Valanginian deposits, and geological analysis of Achimov and Jurassic sediments. The long-term development program for 2016-2025 aims at increasing the resource base (by means of Achimov sediments) and developing the field.
Download the presentation of ALROSA Investment Projects
ALROSA is planning to sign an agreement with the Ministry for the Development of the Russian Far East for its largest investment project – Diamond Mining Plant on Verkhne-Munskoe Ore Filed. The Company’s total project investments throughout the mine development period will amount to RUB 62,984.3 million, with the state support for the construction of the project infrastructure of RUB 8,525.8 million.
The launch of the Eurasian Diamond Centre on the territory of the Free Port of Vladivostok will become a landmark event for the Company. The unique cluster will bring together complementary companies of the diamond industry: those engaged in the production and sale of rough diamonds, manufacturers of polished diamonds and jewelry, gemological laboratories, banks, insurance companies, specialized transport companies, and government agencies: specialized customs and state control bodies.
Download Eurasian Diamond Centre brochure
A unique 360° video film about ALROSA’s production facilities will be presented to the guests at the Company’s exhibition stand.