ALROSA reports the status of its currently suspended Mir underground mine development.
Following the analysis of several options for deposit opening and deep level development, ALROSA has worked out a decision-making concept regarding restoration or full closure of the mine at the Mir pipe.
The concept requires deep level exploration down to -1,300 metres to confirm the mine’s reserves. These activities are scheduled to be completed by early 2022. Budgeted at around RUB 2 billion, this work is included in the Group’s RUB 28.7 billion capex programme for 2019.
Based on the results of the exploration works, pilot holes will be drilled to start preparation of deposit opening design documents (within 1 to 2 years). This work is to be completed before 2024.
Simultaneously, the Company will carry out conceptual design activities to ensure water disposal at the mine and choose the best mining technology as well as ventilation and gas safety options.
If it is decided that the restoration of the Mir underground mine is feasible, the construction is estimated to take 6 to 8 years.
In summary, Mir mine restoration can start no earlier than 2024 and only if the studies yield positive results, and if it is confirmed that construction and mining can be done with the highest level of occupational safety.
ALROSA’s decision about further development of this mine will be based solely on safety considerations and economic viability.