Diamond output of Severalmaz will exceed 1.6 million carats by the end of the year

Severalmaz will boost its diamond output to 1.610 million carats at the Lomonosov diamond field by the end of 2014. The following year, the miner’s production is expected to reach more than 2 million carats, thus bringing the company to a breakeven level. This news was broken by the DvinaInform news agency on Wednesday, citing the statement made by Vitaly Fortygin, Councilor to the CEO of Severalmaz during a press tour to the Lomonosov diamond field. "Since the beginning of the development (in 2005 - Ed.), we produced about 4 million carats, and in two years we should reach the full production capacity which is 5 million carats a year," the councilor said.
"Currently, the share of Arkhangelsk diamonds is about 2% in the total production generated by our parent company ALROSA, and it is expected to increase to 10%,” Sergei Gerasimov, CEO of Severalmaz said. “Huge investments in development do not pay off fast, but in 2015 we will start to receive net profits.”
The reserves of the Lomonosov diamond filed are estimated at 200 million carats, accounting for about 23% of all Russian diamond reserves.
According to Sergei Gerasimov, the company does not experience any difficulties due to the depreciation of the ruble. Diamonds have traditionally been sold exclusively for US dollars in the world market. It is estimated that the kimberlite pipes in the Lomonosov diamond deposit contain diamonds worth $12 billion. The budget of the Arkhangelsk Region will gain about 500 million rubles in 2014  from the operations run by Severalmaz, while the budget of the Primorsky District will have about 40 million rubles.