ALROSA To Invest Nearly $1B in Verkhne-Munskoye Diamond Field in Yakutia

Mining and Exploration
20/04/2016 15:27

The Ministry for Development of Russian Far East has announced that ALROSA has received government approval for an investment project to establish a diamond mining operation based on the Verkhne-Munskoye Diamond Field, reports Rough&Polished. The investment project has been implemented starting from 2015 and the planned amount of private investments is set at RUB 62.98 billion (nearly $1 billion). The investor requested infrastructural support from the government with a view to build a temporary 150-km-long road from the City of Udachny to Verkhne-Munskoye. The mining operation is scheduled to reach its production capacity of 3 million tons of ore per year in 2019. Verkhne-Munskoye has an in-place diamond reserve of 38.3 million carats, which is scheduled to be developed up to 2043. ALROSA will use its own funds to implement this project creating 713 new jobs. ALROSA plans to erect the infrastructure until 2018 on its own account and then use the subsidy to offset the costs incurred in line with the rules for subsidies approved by the Russian Government.