Alrosa Mulling Underground Expansion at Jubilee
April 14, 25
(IDEX Online) - Alrosa is expected to decide soon whether it will switch from open-pit to underground mining at the Jubilee pipe, part of its huge Aikhal mine, in Yakutia, north-eastern Russia.
"We need to make an investment decision on Jubilee, on the transition to underground mining after the open pit is depleted," Pavel Marinychev, the company's CEO, said in an interview with the Yakutia 24 TV channel.
Operations at the Jubilee kimberlite pipe (also known as Yubileinaya), began in 1990. It is among the world's biggest diamond mines, and at its peak, between 2013 and 2018, accounted for a quarter of Alrosa's production.
"We intend to submit this investment decision to the supreme management bodies during the quarter," said Marinychev.
"This is vitally important for the Aikhal Mining and Processing Plant to keep operating rhythmically. We can't be late with these investment decisions," he said.
Alrosa, now being it by G7 sanctions, confirmed last month that it was suspending production at its low-margin mines amid what it calls a "deep crisis" in the industry. It also reported a 77 per cent slump in profits for 2024 (down to $223m).
Marinychev also said design work was under way on a huge, new $1.26bn mine to replace Mir, but it had slowed due to cost-cutting within the company. Mir closed after the 2017 flooding disaster that claimed eight lives.
Alrosa is also continuing its diversification into gold, according to a report by the independent news agency Interfax. It is conducting its own explorations and is looking at the possible purchase of existing gold mining assets.
Pic courtesy Alrosa shows Jubilee pipe.