Alrosa to Begin Production on $1B Asset

RAPAPORT... Alrosa will begin production next year on its new Zaryadeposit, estimated to contain over $1 billion in diamond reserves. The mine contains approximately 3.5 million carats, and willreplace production from the miner's Komsomolskaya pipe, which is nearing end ofmine life. "The open-pit mine construction is planned to be completedin 2019," Timofey Baishev, deputy head of production of the Komsomolsky mine,said Friday. "[It] is expected to reach its design capacity of 1,250 milliontons of ore annually in 2021." Alrosa's Aikhal Mining and Processing Division will operatethe mine, at a cost of about $189.9 million (RUB 12 billion). Image: Komsomolsky mine; Credit: Alrosa