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Grib Diamond Mine Sold for $1.5B
Dec 4, 2016 4:58 AM
By Rapaport News
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RAPAPORT... Lukoil has agreed to sell its Grib diamond project to
Russian investment group Otkritie Holding. The $1.45 billion cash deal is expected to close in the first
quarter of 2017 following government approval, the companies announced Friday.
“Spinning off this non-core asset allows us to
effectively monetize the significant shareholder value that we have created
over the past five years,” said Alexander Matytsyn, Lukoil’s senior vice
president for finance.
Located in Russia's Arkhangelsk region, production at Grib was launched in September 2014, emerging as the country's largest diamond mining operation outside of ALROSA's portfolio.
Lukoil pushed production to almost full capacity on time and within budget, Matytsyn added. While initial projections pointed to full production of 4.5 million carats a year, Lukoil has not disclosed operating data for the mine. Sales reached $162 million in 2015 and grew to $232.3 million in the first nine months of this year.
The deal sees Otkritie acquire Lukoil's subsidiary Arkhangelskgeoldobycha, which operates the mine.
“This acquisition diversifies Otkritie’s range of business interests as the largest privately owned financial company in Russia,” said Dmitry Romaev, a director of Otkritie who will be responsible for the strategic management of the mine. The company sees potential for further development at the site, he added.
The majority of the mine's production is sold by tender via the Antwerp-based subsidiary Grib Diamonds. Sources said the marketing operation won't be affected by the acquisition. |
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Tags:
Alexander Matytsyn, Alrosa, Arkhangelsk, Arkhangelskgeoldobycha, Dmitry Romaev, grib, Grib Diamond Mine, lukoil, mines, mining, Otkritie, Otkritie Holding, Rapaport News, Russia
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