ALROSA Resumes Production at Full Capacity

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On September 1 all ALROSA’s mining divisions are resuming production at full capacity after standing idle for the reasons of a sharp market downturn and necessity to complete planned maintenance and repair works.

Processing Plant No. 12 of the Udachny Mining Division recommenced work on August 25. Production at the Jubilee open pit mine, Processing Plant No. 14 of the Aikhal Mining Division, the International open pit mine, Processing Plants No. 3 and No. 5 of the Mirny Mining Division and Processing Plant No. 16 of the Nyurba Mining Division will be resumed on September 1, 2009.

Development of production capacities and preservation of jobs maintaining the current pay level are seen by ALROSA as its top priorities. At present the Company is carrying out an ambitious programme of underground mine construction, which will enable it to maintain its mineral resources at the current level and consolidate its positions on the global market for long term.

On August 21, 2009 ALROSA’s Mir underground mine was officially commissioned. The ceremony was attended by Chairman of the RF Government Vladimir Putin, President of the Republic of Sakha (Yakutia) Vyacheslav Shtyrov, ALROSA President Fyodor Andreev and personnel of the diamond mining company.

Today ALROSA is building in parallel three underground mines in Yakutia — on the diamond deposits of Mir, Aikhal and Udachny. Their construction has been made necessary either by the conservation or a near end of life of the open pit mines there.

Putting the underground mine of Aikhal at its full annual production capacity of 500 thousand tons is scheduled for 2012. The second start-up facility there is planned to be commissioned in December 2009.

The undergroound mine of Udachny will be one of the world’s biggest mines of its kind — its effective capacity will be 4 million tons of ore per annum. Construction works at the mine site began in 2004. In 2011 the first start-up facility with a design capacity of 500 thousand tons of ore per annum is scheduled to be put into operation, and in 2014 the mine will be producing at its design capacity.

Over USD 2.8 billion will be allocated for the construction of the tree mines over the period of ten years (from 2005 to 2014), the aggregate capacity of the mines being six million tons of ore per annum.

This page was last updated on 01 September 2009 at 15.17