Alrosa Buys Alluvial Miner

(IDEX Online News) – Almazy Anabara, a subsidiary of Russian diamond giant ALROSA bought a 51 percent stake in Nizhne-Lenskoye for RUB 3.67 billion ($119 million).

Nizhne-Lenskoye is an alluvial diamonds miner producing about 2 million carats of diamonds annually. It is operating near Almazy Anabara in Mayat River in the in Eastern part of Russian republic Sakha (Yakutia). Almazy Anabara is also an alluvial miner.

Alrosa said Nizhne-Lenskoye has existing and expected mineral resources of to last 17 years. In addition, it has an inventory of estimated at 26.4 million carats.

The company was bought at an auction held by Sakha's Ministry of Property and Land Relations. The ministry holds the remaining 49 percent. The results of the auction were announced Saturday.

"One of the strategic tasks of Alrosa is to build up its mineral reserves," Fyodor Andreev, President of Alrosa, said in a release.

The Mayat river in Sakha with Almazy Anabara's alluvial mine