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Lukoil Diamond Revenue Down After Mine Sale

Aug 30, 2017 5:09 AM   By Rapaport News
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RAPAPORT... Lukoil’s diamond sales dropped in both the second quarter and first half due to the sale of its sole diamond-producing asset in May, the oil producer reported Tuesday.

The company’s diamond revenue came to $17 million (RUB 1 billion) for the quarter and $102.2 million (RUB 6 billion) for the six months that ended June 30 — down from $51.1 million (RUB 3 billion) and $187.4 million (RUB 11 billion) respectively in the same periods last year.

Lukoil, Russia’s largest oil miner, sold its Grib diamond project in the country’s Arkhangelsk region to Russian investment group Otkritie Holding in a $1.45 billion cash deal that concluded during the quarter. Lukoil had sourced all its diamonds from the Grib asset.

Proceeds from the sale added $647.4 million (RUB 38 billion) to the company’s profit after taxes, it said.

Production at Grib commenced in September 2014, making it the country’s largest diamond mining operation outside of Alrosa’s portfolio. Initial estimates put full annual production at 4.5 million carats.

Image: M DOGAN/Shutterstock
Tags: grib, Grib Diamond Mine, lukoil, mining, oil, Otkritie Holding, Rapaport News, Rough Diamonds
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