ALROSA to revise output plan at its International underground mine due to stricter health and safety policy

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ALROSA's management decided to revise output plan at its International underground mine as the company toughens its approach to health and safety management, though 2018 production plan remains unchanged.

Results of the audit conducted following the Mir mine accident back in 2017 led to revision of the construction project for the International mine. The Company decided to suspend the construction of deep mine levels below the level -800 meters whereas it is necessary to carry out works to prevent gas-dynamic phenomena recorded here. Mining at lower levels is expected to resume in the end of 2018 when studies will be carried out and expert recommendations will be received. At the same time, the intensity of mine footage is expected to be reduced for safety reasons. According to preliminary estimates, mining operations below the level -800 meters will be fully restored in 2023, after which the underground mine will return to its designed capacity of 500,000 tonnes.

ALROSA's production plan for 2018 remains unchanged at 36.6 million carats. According to the Company's estimates, from 2019 to 2022, the decline in production at International will be between 0.5 and 0.8 million carats per year. "This decision means changes in sequence of mining and preparing the ore body. Now we are starting planning for the next years, during which we will consider the existing options to intensify production at other fields and balance the production plan. We will also work to reduce the time required for the implementation of the necessary activities at the International mine," said ALROSA First Deputy CEO - Executive Director Igor Sobolev.

"In our decision to reduce pace and output we were guided by new stricter rules governing health and safety system.Our employees' health and safety are an absolute priority for us," said CEO Sergey Ivanov.

Reference:
International underground mine is located 16 km south-west of the town of Mirny, it was commissioned in 1999.As of the beginning of 2018, International pipe diamond reserves under the National Reserves Committee standards were 51.3 million carats.In 2017, the underground mine produced 3.7 million carats of rough diamonds.The approved reserves of International pipe are characterized by a high diamond content in ore, about 7-8 carats per ton on average.

This page was last updated on 20 June 2018 at 17.29