Reinsurer sees financial damage from Mir mine flood at 16 bln rbl

MOSCOW, Feb 8 (PRIME) -- Financial damage from a flood at the Mir mine of uncut diamond giant ALROSA has exceeded 16 billion rubles, according to a report of the Russian National Reinsurance Company seen by PRIME late on Wednesday.

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 at 10.216 billion rubles.

All property of the mine was insured in insurer Sogaz, and the maximum insurance payment stands at 10 billion rubles. Under the law, insurance companies have to transfer 10% of all their reinsurance risks to Russian National Reinsurance Company.

ALROSA said earlier that the company expected to receive the insurance payment until the end of June 2018.

(56.9533 rubles – U.S. $1)

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