Yakutia and ALROSA signed agreement to construct gas pipeline to Nakyn ore field

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St Petersburg, 4 June 2021 – Aysen Nikolaev, Head of the Republic of Sakha (Yakutia), and Sergey Ivanov, ALROSA’s CEO, have signed a cooperation agreement on the sidelines of the St Petersburg International Economic Forum, on a project to construct a gas pipeline branch to the Nakyn ore field production site.

Yakutia is striving to ensure industrial and environmental safety by sustainable use of energy potential and energy conservation. ALROSA, in turn, is keen to convert its production facilities to natural gas fuel, as it is more environmentally friendly and cost effective.

The construction of the gas pipeline branch is planned for 2021–2024. The total capex of the project will amount RUB 2.5 bn, including ALROSA’s funds. According to Sergey Ivanov, a feasibility study has been completed, financing sources are being identified, and documents are being prepared for a tender to choose a contractor for the project. Companies from the Republic of Sakha (Yakutia) are expected to be among those participating.

“Yakutia is rich in gas. According to experts, its use will positively impact the environment and reduce the cost of energy to the Nakyn ore field by a factor of five," commented the Head of Yakutia about the signed agreement. "The resulting economic effect can be reinvested in other environmental projects.”

“This is another step towards achieving carbon neutrality in our business," Sergey Ivanov emphasised. "Such a large-scale investment project will also help to improve the efficiency of the Nyurba Division. We are interested in the stable operation of our facilities, in their reliable and uninterrupted energy supply, in reducing the risks associated with the delivery and use of oil and diesel fuel. The Republic's support for the gas pipeline construction project is very important for us, since it guarantees that questions related
to organisation of the construction will be resolved clearly and promptly."

The Nakyn ore field is located in the Nyurba Region of the Republic of Sakha (Yakutia), approximately 280 km from the town of Mirny. ALROSA's Nyurba Division was established in 2000 to develop the diamond deposits here. The Division's largest production facilities today are the open pits of the Nyurbinskaya and Botuobinskaya pipes, as well as processing plant No. 16. By the end of 2020, the Nyurba MPD became the largest mining enterprise in the ALROSA Group: 8.3 m carats of diamonds (27.6% of the total production).

This page was last updated on 04 June 2021 at 08.40