20 April 2016

    At an assembly of the Subcommittee on Issues Related to the Implementation of Investment Projects in the Russian Far East, presided over by the Deputy Prime Minister and Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev, approval was secured for ALROSA’s investment project on ‘A diamond-mining enterprise at the Verkhne-Munskoye ore field’. The news was announced by the Ministry for the Development of the Russian Far East in an official press release.

    The proposed volume of private investments is RUB 62.98 billion. ALROSA has requested a further RUB 8.5 billion in state support to facilitate the creation of a temporary access route, linking the town of Udachny to the ore field in Verkhne-Munskoye, with a pipeline measuring 150 km. The investor intends to construct the facility independently before applying for reimbursement of its expenses in 2018.

    It is expected that the new enterprise will reach full operating capacity in 2019, and there are sufficient resources for mining to continue until 2043. This will lead to the creation of 713 new jobs.

    Tax payments and contributions resulting from the implementation of the project have been estimated at RUB 46.4 billion over ten years, of which RUB 15.5 billion will go into the federal budget.

    The Deputy Minister for the Development of the Russian Far East Sergey Kachaev emphasised that “the project for the exploration of the Verkhne-Munskoye ore field in Yakutia will receive RUB 7.4 in private investment for every rouble invested by the state, and within ten years the federal budgetary investment will have paid for itself almost twice over”.