ALROSA updates heat and power supply systems at its industrial facilities

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Mirny, April 16, 2018 – ALROSA, the world leader in diamond mining, is implementing a program for the conversion of autonomous boiler-houses and power plants to alternative fuels available in the territory of its presence. As expected, it will allow ALROSA to reduce operating expenses by more than RUB 5.3 billion over the next 10 years.

In 2018, ALROSA is planning to build a gas boiler-house in Almazny settlement in Mirny district of Yakutia, refusing to operate oil-fired boilers. The Company is also reconstructing the diesel power plant of Nyurba Mining and Processing Division, modifying it to run on cheaper oil.

Moreover, by the beginning of the year the Company had completed the reconstruction of three boiler houses serving Nyurba Mining and Processing Division, converting their boilers from diesel fuel to oil. In Arylakh settlement of Mirny district ALROSA built a gas boiler house, refusing to operate electric boilers, which allowed to reduce the annual electrical energy consumption by more than 40 million kWh.

“Today, the cost of diesel fuel required to produce a unit of heat (gigacalorie), taking into account its delivery to remote areas, is more than double the cost of oil produced in Yakutia and about 10 times more than the cost of natural gas. The cost of electrical heating is also very high,” says Igor Zherdev, Head of ALROSA Production Performance Improvement Department. “According to our estimates, conversion of boiler houses and power plants to alternative fuels will reduce the Company’s operating expenses by more than RUB 5.3 billion over the next 10 years.”

In addition, ALROSA has commenced a feasibility study for a promising initiative regarding the gasification of facilities in Udachny Mining and Processing Division and Udachny town. It provides for the replacement of the generation resource (electrical heating) with cheaper natural gas. Should the effectiveness of this project be confirmed, it will be implemented in 2019-2021.

Upgrading heat, water and power supply systems of the Company’s industrial facilities is part of the large-scale program implemented by ALROSA to improve operational efficiency and reduce operating costs.

This page was last updated on 16 April 2018 at 13.38