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Alrosa Consolidating Key Mining Division
Sep 8, 2019 11:11 AM
By Rapaport News
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RAPAPORT... Alrosa’s supervisory board will vote Tuesday on whether to close a subsidiary that controls two of its largest mines, bringing those deposits into its core business.
The Russian miner owns a 97.5% stake in Alrosa-Nyurba, which holds the licenses for the Botuobinskaya and Nyurbinskaya pipes. Alrosa is looking to improve efficiencies through the move, as it already operates the mines on behalf of the subsidiary, and carries out any exploration, rough-diamond processing, sorting and sales tasks associated with the deposits.
“The company’s top management believes that consolidation of
core mining assets on Alrosa’s balance sheet will result in the improvement of
their management efficiency, remove duplicate functions, cut administrative and
management costs, [and] eliminate redundant operations in sorting and sale of
rough diamonds,” Alrosa CEO Sergey Ivanov said last week.
Alrosa-Nyurba, which employs 30 people, had revenue of RUB 44 billion
($668.7 million) in 2018, while net profit was RUB 16.6 billion ($252.3 million). Production from the two deposits totaled 4.6 million carats out of 17.6 million carats that Alrosa recovered in the first half of this year.
If approved by
the supervisory board, the motion will be discussed by Alrosa-Nyurba’s minority
shareholders before a final decision is made.
Update: At the September 10 meeting, Alrosa’s supervisory board approved the consolidation process for Nyurba, and will now be placed in front of the minority shareholders, Alrosa noted Wednesday.
Image: The Nyurba open-pit mine. (Alrosa)
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Tags:
Alrosa, Alrosa-Nyurba, Botuobinskaya, Nyurbinskaya, Rapaport News, Sergey Ivanov
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