Russian diamond miner Alrosa is planning to boost its development strategy, with a strong focus on fortifying its top position in the industry.
According to Alrosa President Sergey Ivanov, the company remains dedicated to strengthening its leadership in diamond mining and building market strength.
“We see a lot of potential in our infrastructure projects, including those in Angola. We have already signed documents on the establishment of a joint venture company for the development of Luele pipe – the largest pipe discovered over the past 60 years. Alrosa also plans to increase its share in Catoca Ltd Mining Co up to 41 percent,” revealed Ivanov during an annual shareholders meeting. “The company will continue its work on the implementation of our investment projects in Yakutia, including those related to the establishment of a diamond mining facility at Verkhne-Munskoe deposit.”
In the meantime, Alrosa will gradually reduce its costs and improve efficiency, and make structural and staff changes in the company if the situation requires.
“The company needs to be reformed inside to have greater manageability and transparency. I can give an upbeat assessment of the operation of our production facilities in Yakutia. We are also facing changes in the administrative staff with a view to improve the company’s internal efficiency,” continued the company official.
He stressed that Alrosa will modify business processes, improve the quality of managerial decisions and performance discipline, and optimise costs.
Ivanov also disclosed that Alrosa’s investments in underground mines and other core production facilities amounted to RUB 16.5 billion (around $280 million) or 60 percent of the company’s total capital investments in 2016.
The miner started developing a new primary diamond deposit at Zarya, which is one of Alrosa’s largest investment projects. Its development guarantees loading of existing capacities of the Aikhal Mining and Processing Division for at least two decades ahead, noted the company.
Alrosa is also still actively working to establish a diamond mining facility on the deposit of Verkhne-Munskoe kimberlite field. In accordance with the investment agreement signed with the Ministry for the Development of the Russian Far East in 2016, the total investment in the development of the deposit will be RUB 63 billion (around $1.06 billion). According to Sergey Ivanov, government support for the project emphasises its importance and potential for the development of the Russian Far East.