ALROSA, the world’s leading diamond mining company, has achieved a significant milestone with the official approval from Glavgosexpertiza of Russia, the Main Department of State Expertise. This crucial regulatory endorsement paves the way for the ambitious project to open up and develop the upper horizons of its renowned International (Inter) underground mine. This strategic development is poised to substantially contribute to ALROSA’s long-term production targets and reinforce Russia’s standing as a dominant force in the global diamond market. Production from these newly developed upper horizons is anticipated to commence in the fourth quarter of 2020, marking a vital expansion in the mine’s operational capacity.
The International kimberlite pipe, a cornerstone asset in ALROSA’s extensive portfolio, has a rich history dating back to its discovery in 1969. Situated merely 16 kilometers from the town of Mirny in the Sakha Republic (Yakutia), this deposit quickly established itself as a high-grade source of exceptional quality diamonds. Underground mining operations at the International pipe began in 1999, initiating a new era of sophisticated extraction techniques to access its deep-seated treasures. The mine has since become synonymous with robust diamond production, consistently delivering valuable rough diamonds to the world market and employing cutting-edge technologies to overcome the inherent challenges of subterranean resource extraction.
Strategic Expansion and Technological Prowess at the International Mine
The development of the International mine has been meticulously planned and executed in distinct stages, reflecting ALROSA’s commitment to maximizing resource recovery and ensuring operational longevity. The first stage of production focused on mining at depths ranging from -200 meters to -560 meters below the surface. This phase, a testament to complex engineering and diligent execution, has been successfully completed, providing a substantial yield of high-quality diamonds and contributing significantly to ALROSA’s annual production figures. The current approval from Glavgosexpertiza now targets the second stage of expansion, which involves extraction from -155 meters to -200 meters, alongside continued development at the deeper horizons of the deposit. This multi-faceted approach underscores ALROSA’s strategic vision for comprehensive resource utilization.
The current mining plan, spanning from 2019 to 2041, outlines an aggressive yet sustainable strategy for the International mine. This long-term blueprint not only involves delving into even deeper levels, with an ultimate target depth of -1,250 meters, but also crucially includes the development of the upper horizons. This parallel development is critical for maintaining consistent ore supply and optimizing the mine’s overall efficiency. Mining at such extreme depths presents a myriad of engineering and safety challenges, demanding innovative solutions in ventilation, rock mechanics, ore hoisting, and personnel management. ALROSA’s track record demonstrates its capability to implement world-class technologies and safety protocols to operate in such demanding environments, reinforcing its position as a leader in deep underground diamond mining.
ALROSA’s Commitment to Safe and Sustainable Resource Development
Igor Sobolev, ALROSA’s First Deputy CEO and COO, articulated the company’s perspective on this crucial project: “This year we start a planned development of the upper horizons of the Inter underground mine. This project has been included in all production and investment plans and it allows developing all commercial reserves of the deposit in a completely safe way.” His statement highlights the meticulous planning that has gone into integrating this expansion into the company’s broader operational strategy. The emphasis on “completely safe way” underscores ALROSA’s unwavering commitment to the health and safety of its workforce, a paramount concern in any underground mining operation.
A key enabler for this upper horizon development is the construction of a new, third shaft, measuring an impressive 347.4 meters in length. This significant infrastructure investment is designed to facilitate the efficient extraction of these newly accessible reserves. The strategic deployment of this new shaft will enhance operational flexibility, improve ventilation, and streamline the logistical processes associated with ore hoisting and material transport. The anticipation of receiving ore from the upper horizons as early as the fourth quarter of 2020 signals the advanced state of readiness of this project. Furthermore, the capacity is expected to increase gradually in the coming years, indicating a phased ramp-up designed for optimal performance and resource management. ALROSA projects that these particular reserves from the upper horizons will contribute to diamond production for approximately 10 years, ensuring a stable and predictable supply stream for the foreseeable future and providing long-term economic benefits to the region and the company.
The International Kimberlite Pipe: A Rich Source of Premium Diamonds
The International kimberlite pipe has long been celebrated for its exceptional diamond grades and the consistent quality of its output. Discovered in 1969, its proximity to the established mining town of Mirny provided immediate logistical advantages, allowing for rapid development and integration into Russia’s burgeoning diamond industry. This deposit is unequivocally a high-grade diamond asset, a characteristic that makes it incredibly valuable for ALROSA. High-grade deposits translate into more carats per ton of extracted ore, making the mining operations more economically viable and productive, even at significant depths.
As of July 1, 2018, the JORC (Joint Ore Reserves Committee) compliant reserves for the International mine were estimated at approximately 49.6 million carats. This substantial figure positions the mine as a globally significant source of rough diamonds. What truly sets the International mine apart are its remarkable grades, which consistently exceed 6.7 carats per ton of ore. To put this into perspective, many diamond mines worldwide operate profitably with grades significantly lower than this, underscoring the extraordinary richness of the International deposit. This high concentration of diamonds per unit of ore contributes directly to ALROSA’s profitability and ensures a consistent flow of premium rough diamonds into the global supply chain, serving various segments of the diamond market, from industrial applications to high-end jewelry.
Once extracted from the depths of the International mine, the diamond-bearing ore embarks on the next critical stage of its journey: processing. This crucial step is carried out at Plant #3 of the Mirny Mining and Processing Division, a state-of-the-art facility equipped with advanced technologies for crushing, sorting, and concentrating the ore to liberate the precious diamonds. This integrated approach, from extraction to preliminary processing, is a hallmark of ALROSA’s efficient operational model. In 2019 alone, the International mine demonstrated its impressive productivity by yielding 2.2 million carats of diamonds, a figure that highlights its ongoing importance to ALROSA’s overall annual production and its critical role in maintaining Russia’s leading position in the global diamond industry.
Looking Ahead: ALROSA’s Enduring Vision for Diamond Production
The approval and subsequent development of the upper horizons at the International underground mine represent more than just an expansion project; they signify ALROSA’s enduring commitment to strategic growth, technological innovation, and sustainable resource management. By meticulously planning for both deep-level and upper-horizon mining, ALROSA is ensuring the longevity and continued profitability of one of its most valuable assets. This balanced approach to resource development is crucial for maintaining a stable supply of rough diamonds in a dynamic global market.
ALROSA’s investment in new infrastructure, such as the third shaft, reflects a forward-thinking strategy aimed at enhancing operational efficiency, reducing environmental impact, and upholding the highest standards of safety for its workforce. The projected decade-long contribution from these upper horizons, coupled with the long-term plan to mine down to -1,250 meters, paints a picture of robust and sustained diamond production for decades to come. This strategic foresight not only secures ALROSA’s future but also strengthens the economic vitality of the Mirny region and contributes significantly to the Russian economy.
As the world’s leading diamond producer, ALROSA continually seeks to optimize its mining operations, explore new frontiers, and contribute to the responsible development of the diamond industry. The International mine, with its rich history, significant reserves, and ongoing expansion, remains a shining example of ALROSA’s engineering prowess and strategic acumen. With production from the upper horizons slated to begin in late 2020 and a clear vision for the next two decades, ALROSA is well-positioned to continue its legacy as a cornerstone of the global diamond market, delivering both economic value and exquisite diamonds to consumers worldwide.