RAPAPORT… Alrosa has begun drilling at its Mir mine to test whether reopening the deposit is economically viable.
This phase, which it will carry out through 2021, will help define the mine’s dimensions and the quality and grade of its remaining diamonds, Alrosa noted last week. It will also test how safe the site is.
Alrosa will spend RUB 2 billion ($32.5 million) to complete the first phase of work. If the results prove positive, it will submit a final report to the Russian State Commission of Mineral Reserves (GKZ) in 2022, and will begin reconstruction of Mir in 2024 at the earliest. Alrosa expects the work to take another six to eight years before it’s ready for production.
Alrosa suspended mining activity at Mir in August 2017 following a flood that claimed the lives of eight employees.
Image: The Mir mine. (High Contrast)
Alrosa Takes First Step Toward Reopening Mir
The Bottom Line
- Alrosa is conducting drilling through 2021 to evaluate the Mir mine's size, diamond quality, grade, and safety conditions.
- The company plans to invest RUB 2 billion ($32.5 million) in this initial phase and will submit findings to the Russian State Commission of Mineral Reserves in 2022.
- If viable, reconstruction could begin in 2024, with production potentially resuming six to eight years later.
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