In 2013 Micon completed an independent review and valuation of the ALROSA Group of Companies’ principal diamond assets in Russia. This included visits to the majority of the ALROSA operations, an audit of the ALROSA reserve statements and preparation of mineral resource and reserve statements classified according to the definitions of the JORC Code for each of the mining divisions. ALROSA is one of the largest diamond companies in the world with a 25% share of the global diamond market, in terms of total value of production. The company accounts for 97% of all rough diamonds produced in Russia and it is among the top 10 companies in Russia in terms of profitability. The production capacity of the ALROSA Group is based on 19 mines comprising both primary hard-rock and alluvial types, grouped into several mining and processing divisions or subsidiaries. The assets covered by the Micon assessment comprised 12 kimberlite pipes and five placer deposits, including the Yubileynaya (Jubilee) pipe where, in 2013, a 235.16 carat diamond was recovered valued at between US$1.5 and US$2 million. The Udachnaya Pipe, mined by the Udachny GOK, is the largest source of diamonds in the Russian Federation in terms of value of diamonds recovered. Currently, the Udachny GOK mines the Udachnaya and the Zarnitsa kimberlite pipes and the Udachnaya pipe is the largest in terms of total contained carats of all the ALROSA assets. Processing of ore from all the mining operations is currently undertaken at a central processing plant, Plant No. 12, which was commissioned in 1971 and is located in Udachny. The Udachny open pit started production in 1971 and is currently 640 m deep. An underground mine has recently been brought into production to replace the open pit reserves at Udachnaya. The pipe is located in the Daldyn-Alakit diamondiferous district and is traced as a consistent ore body to a depth of 250 metres, below which it divides into Eastern and Western ore bodies separated by a block of Upper Cambrian sedimentary rocks. Access to the underground reserves of the Udachnaya pipe will be provided by three vertical shafts located to the south of the open pit. The mining method is expected to be uphole longhole retreat stoping and bottom ore mucking. Diesel LHD units will be used on draw levels and electric LHDs will be used on main haulage levels. Continuous miners will be used for the development mining in ore and the raises between levels for ventilation and second egress will be raise-bored. It is estimated that the mine will reach its full capacity of 4.0 million tonnes per year by 2019.