Alrosa could exceed 2022 production plan slightly - CEO

MOSCOW. Oct 11 (Interfax) - Alrosa continues to operate as usual and may even slightly exceed its production plan for 2022, the company's CEO Sergei Ivanov said at a meeting with Yakutia Governor Aisen Nikolayev.

The company is also preparing to start rebuilding the Mir mine.

"The company is not reducing its operating plans, we have recently looked at the consolidated results for 9M of this year, and we are strictly following the production plans approved by the board at the end of last year, and it's likely that we will exceed them somewhat by the end of the year," Ivanov was cited as saying by the company's press service.

This year's production guidance for Alrosa is 34-35 million carats. The company expects to produce about the same amount in 2023, Ivanov said in September.

Furthermore, Alrosa is fulfilling all its social obligations, Ivanov informed.

The head of Yakutia noted that the company is taking all necessary measures to ensure the stability of production activities in the current environment.

Work continues on important strategic projects, including preparations for the start of construction of the Mir-Gluboky mine, the transformation of the production unit, and digitalization, Nikolayev said.

Earlier this year, ALROSA estimated the cost of rebuilding the Mir mine at $1.2-1.5 billion. Construction will take 6 to 9 years, the company expects.

In 2019, when the first preliminary calculations of capital investments in this project were published, the estimate was at a level of 73 billion rubles.

The Mir mine was flooded during an accident in August 2017, when water broke into the mine from a depleted open pit. The ore at the Mir mine is notable for its high-grade diamond content. Before the accident, the Mir mine accounted for more than 10% of Alrosa production.