The Jubilee pipe, part of the vast Aikhal mining complex in the remote Yakutia region of north-eastern Russia, has been in operation since 1990. At its peak between 2013 and 2018, the mine contributed a remarkable 25% of Alrosa’s total diamond output.
Speaking to Yakutia 24 TV, Alrosa CEO Pavel Marinychev confirmed that the company is preparing to present an investment proposal to initiate underground mining once open-pit resources are exhausted.
“We must make a timely investment decision on Jubilee,” said Marinychev. “It is essential for maintaining steady operations at the Aikhal Mining and Processing Plant. Delays are not an option.”
The decision comes as Alrosa grapples with a deepening crisis in the diamond industry, compounded by sanctions from the G7 nations. In March, the company announced the suspension of production at several low-margin mines, citing unsustainable market conditions. Its 2024 net profit nosedived by 77%, falling to just $223 million.
Marinychev also addressed plans for the revival of the Mir mine, which has remained closed since a catastrophic flooding incident in 2017 that claimed eight lives. Alrosa is working on the design for a $1.26 billion replacement project at the site, although progress has slowed amid broader company-wide cost-cutting efforts.
Meanwhile, Alrosa is pushing ahead with its diversification strategy, exploring opportunities in the gold sector. According to Russian news agency Interfax, the company is actively surveying potential gold reserves and is also considering acquisitions of existing gold mining operations.
With the diamond sector in flux and key decisions looming, Alrosa’s next steps could shape not only its own future, but also the outlook for Russia’s precious minerals industry.
