Alrosa Acquires Gold Deposit in Russia’s Far East from Polyus

Russian diamond producer Alrosa has purchased a gold deposit in Russia's Far East from miner Polyus. This acquisition marks Alrosa's deeper venture into gold mining, which the company states will complement its existing business and enhance its financial stability without significantly altering its strategy.

Alrosa's CEO Pavel Marinychev highlighted the strategic benefits, saying, "The development of the gold deposit will provide an additional synergistic effect for Alrosa’s business and will help increase its financial stability in the long term."

Alrosa plans to invest 24 billion roubles ($276 million) to develop the Degdekan gold deposit, aiming for an annual production capacity of 3.3 tons by 2030. The company intends to develop the site until 2046.

Polyus, which has held the Degdekan license since 2005, sold the deposit to streamline its exploration portfolio as it gears up to develop the extensive Sukhoi Log deposit in Siberia. The financial terms of the deal were not disclosed.

Alrosa emphasized that its primary focus remains on the diamond business but it remains open to projects where it can leverage its mining expertise. The Degdekan deposit's attractiveness is partly due to its proximity to transport and energy infrastructure.