Sourcing

Alrosa Won’t Reopen Mir Until At Least 2030

SourcingMar 19, 2019

Alrosa Won’t Reopen Mir Until At Least 2030

The diamond mine has been closed since August 2017, when an accident claimed the lives of eight workers.

2017_Alrosa-Mir-mine.jpg
Alrosa will soon start work to determine if it is safe and financially feasible to reopen the Mir mine in Siberia, which flooded in August 2017, trapping more than 100 workers and killing eight.

Moscow—Alrosa’s Mir diamond mine won’t reopen until at least 2030, if at all.

On Monday, the Moscow-based diamond mining company said it has to conduct deep-level exploration (down to 1,300 meters/4,265 feet) to determine the mine’s reserves; that exploration is expected to cost about 2 billion rubles ($31 million) and be completed by early 2022.

If Alrosa finds there are enough diamonds to make restoring and reopening the mine financially feasible, then it will take about two years to drill pilot holes that will be used for the creation of deposit-opening design plans.

After that, it will start construction—which will include making improvements to ensure the mine doesn’t flood again—that will take six to eight years to complete.

The timeline puts the mine’s reopening window at 2030-2032.

Mir has been closed since August 2017, when the underground mine flooded, trapping 151 workers, eight of whom couldn’t be reached and died in the mine.

Alrosa said Monday that any decision about further development at Mir “will be based solely on safety considerations and economic viability.”

The announcement about Mir came shortly after the diamond miner released its financial results for 2018, which mirrored those of rival De Beers Group.

Revenue increased—climbing 9 percent year-over-year to 300 billion rubles ($4.66 billion)—on a better sales mix and higher prices, but Alrosa sold fewer diamonds overall. Sales volume was down by 8 percent.

EBITDA grew 23 percent to 156 billion rubles ($2.42 billion). Net profit jumped 15 percent to 90 billion rubles ($1.40 billion).

Alrosa’s strong year came in spite of a weak fourth quarter, with revenue declining 12 percent compared with the third quarter and increasing only 1 percent year-over-year. The company said it sold more industrial than gem-quality diamonds at the end of 2018.

Commenting on the year, Deputy CEO Alexey Philippovskiy said increasing diamond prices and stronger demand in major markets for diamond jewelry, like the United States, as well as increasing efficiency were the key drivers behind Alrosa’s 2018 gains.

S&P and Moody’s upgraded the company’s credit rating to investment grade last year.

Also on Monday, Alrosa executives hosted its Capital Markets Day in London, outlining five strategic priorities the company will focus on through 2024: sustainable development and workplace safety; operational efficiency; maintaining a best-in-class resource base; maximizing shareholder returns; and marketing, including in the U.S., where the company has just tapped Rebecca Foerster, whose background is in marketing, to head Alrosa USA.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Stock image of handcuffs and gavel
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian Families

The men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.

Horizon Campaign Collage
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection

“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.

Pandora jewelry
FinancialsMay 02, 2024
Pandora Raises Guidance After Strong Q1

The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.

national-jeweler-top-image-v1.jpg
Brought to you by
Rio’s Reimagined Podcast: For the Love of Jewelers

Meet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.

Glenn Lewis
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68

The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.

Weekly QuizApr 26, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these seven questions.
Take the Quiz
The back of the Baume & Mercier watch Elvis gave to Dodie Marshall
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K

Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”

Harwell Godfrey
IndependentsMay 01, 2024
Harwell Godfrey Opens First Store

It is located in Marin County, California.

1-(3.18).JPG
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry Retail

With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.

Woman holding a dress
SurveysMay 01, 2024
Consumer Confidence Falls in April

Concerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.

Syna emerald earrings
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on Emeralds

May’s birthstone is beloved for its rich green hue and its versatility.

Stock image crime handcuffs
CrimeMay 01, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO Show

Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.

Tiffany Blue Book 2024: Tiffany Céleste Wings Pendant
CollectionsApr 30, 2024
12 Otherworldly Pieces From Tiffany & Co.’s 2024 Blue Book

The “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.

Zales 100th Anniversary Marketing Campaign
MajorsApr 30, 2024
Zales Celebrates 100 Years With New Campaign

The brand also created a 100-carat lab-grown diamond necklace in honor of its centennial.

Tim Schlick
MajorsApr 30, 2024
Platinum Guild International Appoints New CEO

Tim Schlick has been promoted from his previous position as COO.

Canadian Jewellers Association logo
Events & AwardsApr 30, 2024
Canadian Jewellers Association Brings Back the Summit

It’s the second year for the event, slated to take place in October in Toronto.

Supplier Spotlight -GIA -Recorded-Webinar.png
Recorded WebinarsApr 29, 2024
Watch: Diamond Identification and Evaluation - How to Protect your Business

Supplier Spotlight Sponsored by GIA

Simone I. Smith SIS x MISA Denim and Diamonds
CollectionsApr 29, 2024
Simone I. Smith Mixes Denim and Diamonds in New Collection

“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.

Venus Jewelers Logo
IndependentsApr 29, 2024
Venus Jewelers Relocating After 45 Years

The retailer is moving to a newly designed space in the same shopping center.

Established Mom tattoo pendant
SurveysApr 29, 2024
Mother’s Day Jewelry Spending to Reach $7B, Says NRF

Gifts that are unique and thoughtful are top of mind this year, according to the annual survey.

Jacquie Aiche’s Starry Galaxy Inlay Necklace
CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy Necklace

The necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.

Gemological Institute of America headquarters
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are Converging

The two organizations will host a joint event, “Converge,” in September 2025.

De Beers Venetia diamond mine in South Africa
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo

Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.

Lisa Bridge and Alexis Padis at AGS Conclave 2024
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President

Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.

Jesse Cole Savannah Bananas
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana

Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.

John Mayer Audemars Piguet
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition Watch

The Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.

Stock image of rough diamonds mined by De Beers
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024

The announcement came as the company reported a 23 percent drop in production in Q1.

Jared Goff Presents Jared Jewelers’ Donation to Give Merit
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to Jared

The three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy