Alrosa to Invest $579 Million in Its Mines, Including an Underground Project

(IDEX Online News) – Alrosa's board of directors approved the company's 2013 budget, including a RUB 17.8 billion ($579.1 million) investment in construction at its main production areas, more than half of the total capital investments in 2013.

Some of Alrosa's open pit mines are reaching their end, and the company is converting them to underground operation. Construction of the Udachny underground mine will require the largest investments, estimated at about RUB 6.3 billion ($20.5 million) in 2013.

Alrosa reiterated its forecasts of stable demand for diamonds in the first quarter of 2013, followed by moderate growth in the rest of the year. Inline with this forecast, the company expects its rough and polished diamond sales by the Group to remain unchanged from the current year.

The diamond miner said its revenues from diamond sales in 2012 are $4.5 billion.

The Russian diamond monopoly plans to produce 34.5 million carats in 2013, 10 million carats will be produced from underground mines.

In related news, the board decided to "terminate the powers" of Yury Doynikov, a member of Alrosa’s Executive Committee. The company did not explain the decision.