RapNet


Rapaport News

 

Mining

 

Advanced search
Latest Articles
Videos
Features
News
Mining
Rough Markets
Polished Markets
Manufacturing
Retail

Alrosa Consolidating Key Mining Division

Nyurba holds licenses for two major kimberlite pipes.
Sep 8, 2019 11:11 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Alrosa’s supervisory board will vote Tuesday on whether to close a subsidiary that controls two of its largest mines, bringing those deposits into its core business.

The Russian miner owns a 97.5% stake in Alrosa-Nyurba, which holds the licenses for the Botuobinskaya and Nyurbinskaya pipes. Alrosa is looking to improve efficiencies through the move, as it already operates the mines on behalf of the subsidiary, and carries out any exploration, rough-diamond processing, sorting and sales tasks associated with the deposits. 

“The company’s top management believes that consolidation of core mining assets on Alrosa’s balance sheet will result in the improvement of their management efficiency, remove duplicate functions, cut administrative and management costs, [and] eliminate redundant operations in sorting and sale of rough diamonds,” Alrosa CEO Sergey Ivanov said last week.

Alrosa-Nyurba, which employs 30 people, had revenue of RUB 44 billion ($668.7 million) in 2018, while net profit was RUB 16.6 billion ($252.3 million). Production from the two deposits totaled 4.6 million carats out of 17.6 million carats that Alrosa recovered in the first half of this year.

If approved by the supervisory board, the motion will be discussed by Alrosa-Nyurba’s minority shareholders before a final decision is made.

Update: At the September 10 meeting, Alrosa’s supervisory board approved the consolidation process for Nyurba, and will now be placed in front of the minority shareholders, Alrosa noted Wednesday. 

Image: The Nyurba open-pit mine. (Alrosa)
Tags: Alrosa, Alrosa-Nyurba, Botuobinskaya, Nyurbinskaya, Rapaport News, Sergey Ivanov
Similar Articles
AlrosaAlrosa Sales Decline at Slower Rate
Oct 15, 2019
Alrosa’s sales fell 24% year on year to $258.7 million inSeptember,...
Alrosa Finds Diamond Inside a Diamond
Lesotho Renews Letšeng Lease
US Bans Import of Zimbabwe Diamonds
BDBIndia’s Polished Trade Declines
Oct 03, 2019
India’s polished-diamond exports fell 25% to $1.64 billion inAugust, data...
Mining for information
De Beers Hires New Auctions Exec
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First



Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
  
twitter twitter
About Rapaport
Advertise with us