US$531M contract for 5.6M t/yr diamond treatment plant

Bateman Engineering has been selected as the contractor for the design, engineering, supply, construction and commissioning of a 700 t/hr diamond treatment plant to be built in the Arkhangelsk region of Russia for OJSC Severalmaz (“Severalmaz”).

The principal shareholders of Severalmaz are AK “ALROSA” with 92.3 % and the Committee for the State Property Management in the Arkhangelsk region with 5.1 %.

The US$531 million is part of an overall project to increase the capacity of the Lomonosov Mine to 5.6 million t/yr. The plant will treat material from three of the six identified Kimberlite ore bodies within the lease area. The project is scheduled for completion within 35 months from contract signing. The Lomonosov diamond deposits were discovered in 1980 and their probable reserves are estimated at US$12 billion.

In a statement issued by the Russian Interfax agency, ALROSA Investment Group (RTS: ALRS) said: “Bateman has proposed the best technical conditions, as well as its participation in finance facilitation for the project.”

Commenting on the award, Dr Sivi Gounden, Bateman Engineering’s CEO said: “We are delighted to have been selected for executing this most prestigious project which is one of the largest ever won by Bateman Engineering. As well as confirming our leadership in diamonds, it reflects our ability following the successful AIM listing to bid for and win much larger contracts than had previously been possible. It also improves client, geographic and currency diversification.”

For further information, please contact James Nieuwenhuys, Bateman Engineering Managing Director, Diamonds on +27-11-899-9111 or email Diamonds@BatemanEngineering.com.