The Aykhal pit adjacent to the Aykhal Factory No. 14 is at least 600 m deep with the permafrost extending down to 320 m. The unique near vertical wall of the pit can be seen on the left of the picture. Russian mining practice employs bench heights twice that used by western engineers.

A typical BATEMAN 50 t/h modular DMS plant for processing kimberlite, fully erected at the factory.

ALROSA diamond projects in Yakutia, Siberia

ALROSA, the largest diamond exploration, mining and marketing company in the Russian Federation has engaged BATEMAN’s mineral processing and engineering expertise and the banking and financial expertise of BOE Investment Bank to upgrade its Aykhal and Mirny plants and to assist in the development of its Siberian resources.

It is believed to be the first time that a South African engineering company has co-operated with a South African merchant bank in the structuring of a project in the Russian Federation. The Credit Guarantee Insurance Corporation of Africa Limited (CGIC) is also involved.

During preliminary studies a strong BATEMAN team worked on site at Aykhal and Mirny. Following months of negotiation in Moscow and Johannesburg involving ALROSA, BATEMAN, BOE and officials of CGIC, the deal was ratified by V A Shtyrov, president of ALROSA (Almazy Rossii-Sakha Limited). This sets the scene for increasing South African involvement in mining developments in the mineral-rich Russian Federation.

In terms of the agreement, BATEMAN will supply two 100 t/h dense media separation (DMS) plants to the Aykhal Diamond Factory No. 14, a 50 t/h modular DMS plant to the recently refurbished Mirny Plant No. 3 and a fully mobile 5 t/h modular diamond recovery plant for use in the field. The modular plants will be fully engineered and pre-erected by BATEMAN in South Africa prior to shipment. BOE Investment Bank will serve as financial adviser and arranger of facilities. Its first mandate is to provide US$7M to finance the supply of the modular plants.

BATEMAN is also playing a further role in initial studies in which the ALROSA-NYURBA Company plans within two years to establish a new mine at Nyurba. In this study BATEMAN will work with ALROSA’s in-house Yakutniproalmaz Institute. It is a development which could require an estimated US$400M in project finance. The kimberlite deposit is located in an area of deep permafrost.

ALROSA with 42 000 people on its payroll is one of the giants of Russia’s new market economy. It was launched in 1992 as a successor to several Soviet-era entities engaged in diamond exploration, mining and marketing. Its major production mines are located in north-eastern Siberia. In addition, ALROSA has interests in Angola and Namibia and offices in London, New York, Antwerp and Moscow.

ALROSA’s diamond output accounts for almost all diamonds extracted in Russia. In 1996, it accounted for an estimated 20-25 % of world diamond output by value (or 12-15 % by volume).

BATEMAN has been involved in the Russian Federation as early as 1989 and is now a recognised player in the mining and oil and gas arenas having recently been accredited to operate in the FSU by Goskorteknadzor, the Russian licensing authority.

For further information please contact David Macnamara on +27-11-899-2667 or +27-82-410-0908.
E-mail: diamonds@batemanengineering.com

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