ALROSA's Rough Diamond Reserves Grew To Almost 1.2B Carats In 2017

(IDEX Online) – ALROSA said that its total diamond reserves, taking into account the explored deposits under the National Reserves Committee standards, increased by 57.8 million carats during the year (excluding the depletion of reserves) to 1,182 million carats.

In 2017, ALROSA spent a total of almost RUB 8 billion on prospecting and onsite exploration. At the same time, the company launched a reform of the exploration complex aimed at increasing its efficiency. 

In 2017, ALROSA and its subsidiaries carried out prospecting operations in the territory of the Republic of Sakha (Yakutia), in the Arkhangelsk region and Angola (Cuango concession). In Russia, prospecting operations were focused on eight most promising areas, seven of which are located in Yakutia. In particular, ALROSA conducted the search for diamondiferous kimberlites in southern areas of Western Yakutia, prospecting and evaluation works on Syuldyukarskaya pipe and on alluvial deposits in Srednemarkhinsky and Malobotuobinsky areas.

The increase in the reserves is connected with the prospecting and evaluation of deep levels of the Internatsionalnaya pipe (in the depth interval 1,190-1,650 meters), calculation of reserves at deep levels of Yubileynaya pipe (to the level -680 meters), and completion of evaluation for the third stage of the buried Nyurbinskaya placer.

ALROSA's subsidiary, JSC Almazy Anabara, completed prospecting and evaluation operations at the objects Khara-Masskaya Ploshchad and Malaya Kuonamka, and exploration on Lyaseger-Yuryakh and Ochuos subsoil plots. JSC Nizhne-Lenskoye prepared a report with the calculation of reserves for the object Billyakh-pritoki-3.

In 2017, following the decision of the Supervisory Board, ALROSA implemented the first stage of the reform of its exploration. Three specialized competence centers: exploration, mining and drilling, scientific and analytical, were formed based on four exploration subdivisions that worked on a territorial basis. The purpose of these changes is to eliminate duplication of administrative and management functions, strengthen the role of the Chief Geologist Service in the exploration complex of ALROSA Group.

There was also an audit of exploration projects: projects on low potential territories have been stopped, on the contrary, works in promising areas have been intensified.

"The reform of the exploration complex should help to optimize it and increase its efficiency, eliminate duplicate functions, improve management efficiency, and reduce the costs. According to our estimates, the cumulative effect of these changes will exceed RUB 300 million a year while maintaining the pace of exploration operations. Whereas the strategic goal of exploration - effective replenishment and improvement of the quality of the mineral resources base - remains constant," says the Chief Geologist of PJSC ALROSA Konstantin Garanin.

The progress made by ALROSA's exploration complex in 2017 will be considered at the meeting of the company's Executive Committee on March 15.