Alrosa subsidiary begins mining at Karpinskogo-1 kimberlite

Severalmaz JSC, a subsidiary of Alrosa, has begun ore mining on Karpinskogo-1 kimberlite pipe of the deposit named after M.I. Lomonosov in Arkhangelsk region. Stripping operations at a depth of about 36 meters at Karpinskogo-1 preparing the ore body for mining were commenced in 2009.

In 2014 Karpinskoog-1 pipe is expected to produce 0.6 million tons of ore, and by 2015 it will increase to 2 milliion tons of ore per year, when large-scale ore processing will begin. In the end of 2014 Severalmaz will refine small amounts of ore in a test mode to approve diamonds grade and adjust processing technology.

The M.I. Lomonosov deposit consists of 6 kimberlite pipes with 126 million tons of ore reserves under the JORC standards. The JORC reserves of Karpinskogo-1 pipe amounted to 31 million tons of ore containing more than 33 million carats of diamonds.

Since 2005 Severalmaz diamond mining took place at Arkhangelskaya kimberlite pipe. By 2013 Severalmaz diamond production amounted to 0.5 million carats per year. In March 2014 Severalmaz put into operation the second module of the processing plant increasing its processing capacity from 1 to 4 million tons of ore. New processing module and start of mining at Karpinskogo-1 will increase Severalmaz diamond production to 2 million carats in 2015 and to more than 5 million carats hereafter.

In 2014 Alrosa diamond mining level is planned to amount to 36 million carats. According to the Group strategy Alrosa will increase production to 41 million carats by 2021. Alrosa views the development of Severalmaz as important for its growth strategy.