ALROSA's Supervisory Board has given the go-ahead for the company to acquire the 10 percent stock in ALROSA-Nyurba that is currently owned by RIK-Plus, an entity controlled by the Republic of Sakha (Yakutia). ALROSA hopes to complete the acquisition within the first six months of this year.
The Republic of Sakha is in the process of privatising some of the state’s holdings and ALROSA, which currently holds 87.48 percent of ALROSA Nyurba stock, is looking at increasing that to 97.49 percent, a company press release said. The remainder of ALROSA Nyurba stock is held by minority shareholders.
ALROSA Chief Executive Sergey Ivanov has been quoted as saying the company is currently in negotiations with the Republic of Sakha for the acquisition of the stock. “We consider the buyout of the stake in the company as a logical step on the way to consolidation of core upstream assets in the accounts of ALROSA and it will make positive impact on the company's operational efficiency and investment attractiveness. We are planning to close the deal in the first half-year of 2018,” Ivanov said.
ALROSA-Nyurba was set up in 1997 to develop the Nyurbin and Botuobin diamond fields in Yakutiya. By 2017, a group of pipes in these fields had notched up production of 7.7 million carats or 19 percent of ALROSA’s total output.