Alrosa signs investment agreement on Verkhne-Munskoe diamond project

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 Alrosa signs investment agreement on Verkhne Munskoe diamond projectPJSC ALROSA, announced signing of an Investment Agreement on the project “Diamond mining plant based on Verkhne-Munskoe ore field” with the Russian Ministry. The purpose is towards Development of the Russian Far East during the Second Eastern Economic Forum.

The agreement provides for the state infrastructural support of ALROSA amounting to RUB 8.5 billion to create a 150 km long provisional service lane from the town of Udachny to Verkhne-Munskoe deposit.

The service lane will contribute to the implementation of the best option for development assuming the creation on the deposit of a diamond mining plant with the production capacity of 3 million tons of ore per year, where ore will be processed at the existing facilities of the Processing Plant No. 12 of the Mining and Processing Division and transported to the plant.

ALROSA plans to build infrastructure facilities using its own resources until 2018, and compensate for the expenses using the subsidy.

The diamond mining plant on the deposit of Verkhne-Munskoe kimberlite filed is one of ALROSA’s major investment projects. The investment is RUB 62.98 billion. The estimated ore reserves on the deposit of Verkhne-Munskoe kimberlite filed are 65 million tons with the average grade of ore 0.6 carats per ton or 38 million carats in total. The development period is until 2043. Launch of the mining plant and start of mining operations at the open pit mine are planned for 2018. Once the design capacity is reached in 2019, the division will produce 3 million tons of ore per year.



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