Russian diamond miner Alrosa has purchased the Degdekan gold mine in the far east of Russia from Polyus at $276 million.
Alrosa's subsidiary, Almazy Anabara company which produces around 3.9 million carats of diamonds a year or 11 percent of Alrosa’s total annual output, has bought 100 percent of the Degdekan gold ore field in the Magadan region from Polyus the country's largest gold producer, according to a report by Russia's Interfax news agency. The two parties did not disclose the total value of the deal.
Alrosa and Polyus are currently subject to Western sanctions. The move also comes seven months after the G7 and EU countries introduced the first phase of restrictions on the import of Russian diamonds.
Alrosa said development on the deposit would begin once the feasibility study was complete, with initial operations starting in 2028. Once it reaches full capacity, in 2030, it will produce about 3.3 tonnes of gold per year, Alrosa forecast. The mine is expected to continue output until 2046. Alrosa will build a quarry, a gold extraction plant, a tailings storage facility and related infrastructure for the deposit. Total reserves are currently estimated at 100 tonnes. (Photo courtesy: Polyus)
10-07-2024
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