Official: Mir mine flood delays further privatization of ALROSA

MOSCOW, Jan 26 (PRIME) -- The Russian government has delayed further privatization of uncut diamond mining giant ALROSA due to a recent flood at the Mir mine, Deputy Finance Minister Alexei Moiseyev told reporters on Friday.

“Taking into account the situation with the mine, it is obvious that we will have to deal with it before selling anything to investors, it is our top priority now,” Moiseyev said. “That is why all issues connected with privatization have become insignificant.”

In July 2017, the government sold 10.9% in ALROSA, cutting its stake in the company to 33%. Russia’s 2017–2019 privatization plan sees the government reducing the stake further to 29% plus one share. But on Thursday ALROSA CEO Sergei Ivanov said that the government did not suppose and did not discuss any sales of shares in the company in 2018.

Other shareholders include the republic of Yakutia with 25% plus one share and eight districts of the republic with a combined stake of 8%. Free float is 34%.

The Mir mine was flooded in August 2017, killing eight miners and flooding the well that accounted for about 10% of the company’s diamond output. The Federal Service for Environmental, Technological, and Nuclear Oversight estimated financial damage from the flood at 10.216 billion rubles.

(55.9288 rubles – U.S. $1)

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