ALROSA CEO Sergey Ivanov shared his vision of the situation in the company in light of the economic situation in the country.
(yakutiamedia.ru) - Sergey Ivanov, CEO of ALROSA said that the diamond mining company continued its business as usual. He also noted that the company was not going to deviate from its plans. The YakutiaMedia news agency writes about how the Mir mine will be restored, what state support is being provided, and whether the staff reduction is coming.
Sergey Sergeyevich, please tell us about your plans for the restoration of the Mir mine.
The iconic Mir kimberlite pipe, around which the town of Mirny grew up at first, and then the entire Mirny District, is of strategic importance for the Republic of Yakutia and the entire diamond mining industry of the country. The resumption of production at this unique diamond field is the most important task facing not only ALROSA, the town, District and Republic, but the whole country. The safety of work both at the construction stage and at the mine operation stage has been repeatedly mentioned as the priority condition for the implementation of this project. Particular attention will be paid to safe drilling through aquifers. The specialists have done huge research work to take into account all the nuances of the mining and geological structure of the deposit. The implementation of the project allows creating over 1,000 jobs, including over 400 jobs at the construction stage and over 800 jobs after commissioning.
Are you considering the possibility of buying out the ALROSA’s rough diamonds by the state for the Gokhran (State Precious Metals and Gems Repository), or any other measures of the state support?
Indeed, the state has various support tools, including the purchase of rough diamonds for the Gokhran. This year, the top executives of the Ministry of Finance of the Russian Federation have repeatedly confirmed their readiness to resort to this measure if necessary. In addition, it was reported that the issue of state support for the implementation of the Mir-Glubokiy (Deep) project would be considered.
What are the expectations as for the output by the end of the year?
To date, we prefer to refrain from announcing our specific diamond production guidance. I can assure you that ALROSA responds flexibly to the constantly changing situation, but today, there are no prerequisites for revising the previously announced guidance substantially.
Does the company continue exploration drilling at new targets?
The ALROSA’s geologists are actively exploring already known deposits and searching for new promising ones, primarily in relative proximity to the existing enterprises. Among the promising diamond areas under study are the Sredne-Markhinskiy, Daldyno-Alakitskiy, and Muno-Tyungskiy districts.
Does the company experience problems with imported equipment and its maintenance amid the current sanctions?
Of course, we - as the entire Russian industry, and not only industry - have faced the need to adjust our plans, change the suppliers of spare parts and consumables, build new logistics and procurement chains. It is important to emphasize that our colleagues successfully cope with their tasks.
Do you have to cut down wages?
The well-being of tens of thousands of employees, their families and many residents of the Republic depends on the company. This year, we did not cut wages, but indexed them.
Will your social programmes be slashed?
Our company takes all necessary measures to maintain stable production, preserve the manpower and fulfill our social obligations, including targeted financing for the development of the social infrastructure of the Republic, the construction of schools, kindergartens, hospitals and sports facilities, as well as the support for indigenous peoples. Recently, our company, as you know, has initiated and financed the development of a master plan for the town of Mirny. In many ways, this is a unique project, its implementation can be a huge step forward in organizing urban spaces and creating really comfortable living conditions in the Far North.
