Grib Diamonds Nearly Doubles LUKOIL's Diamond Revenue in 2016

Mining and Exploration
15/03/2017 13:20

Russia's leading oil and gas company Lukoil has reported revenue from sales of rough diamonds from its Grib Mine in Russia in the amount of nearly $340 million (RUB 20 billion) for the year 2016, representing an 82% increase over the $186m (RUB 11bn) in 2015 (see link to financial statement, p.25). This will be some of the last revenue Lukoil earns from the mine, as last December Lukoil sold its subsidiary Arkhangelskgeoldobycha, which operates the Grib diamond mine in the north of Russia, to Otkritie Holding Joint Stock Company for $1.45 billion. The purchase does not appear to be finalized as yet. Arkhangelskgeoldobycha has operated the mine since 2014 and in 2016 produced approximately 4.5 million carats. There was speculation that ALROSA might look to acquire Arkhangelskgeoldobycha from Otkritie, but then president of ALROSA, Andrei Zharkov, said this was not in their plans.

Grib Diamond Mine has estimated reserves of 91.5 million carats: it is the 8th largest diamond mine in the world, the 4th largest in Russia and the only major one in Russia that is not operated by ALROSA. Grib Diamonds trades the vast majority of its rough diamonds in Antwerp.