The investment of Severalmaz will boost the company’s production to an annual five billion tons of ore, newspaper Business Class reports. The company, a subsidiary of Russian diamond major Alrosa, in 2008 invested 2,5 billion RUB in the mines, the biggest in Northwest Russia. Sevralmaz started diamond production in Arkhangelsk Oblast in 2005. Since then 3,76 million tons of ore has been extracted. The new investments will be in the second development phase of the field. The company has until now alone ruled the ground in the Arkhangelsk diamond business. Now, however, the company will get competition from global diamond producer number one, De Beers, which together with Lukoil-subsidiary Arkhangelskgeoldobycha will start developing the Verkhotinskaya field. The Lukoil-De Beers deal was signed this year after a long period of corporate conflict between the companies. Arkhangelsk has an estimated 25 percent of Russia’s diamond reserves.
