Alrosa Commits 20B Rubles to Extend Life of Udachnaya Diamond Mine to 2055

In a bold move to secure its long-term production capacity, Russian diamond giant Alrosa has approved a 20 billion ruble ($240 million) investment to extend the life of its famed Udachnaya mine in Yakutia through 2055. The deep-level development will ensure the continued productivity of one of the world’s richest diamond deposits — at a time when several of the world’s major mines are winding down operations.

Located in the Mirny district of western Yakutia, the Udachnaya (meaning “lucky”) pipe was discovered in 1955 and became a cornerstone of Russia’s diamond industry. Open-pit mining began in 1967, and by 2014, Alrosa had transitioned to underground operations to access deeper ore reserves. Today, Udachnaya accounts for more than 10% of Russia’s total diamond output, producing millions of carats of gem-quality stones each year.

Under the newly approved project, mining will reach depths of 1.13 kilometers below the surface — some 450 feet deeper than previously planned. Construction and mine development will proceed in tandem until 2040, with annual output projected to exceed 4 million tons of diamond-bearing ore. According to Alrosa CEO Pavel Marinychev, the extended plan will generate nearly 6 billion rubles in annual profits, supporting more than 1,200 jobs at the site.

The Udachnaya expansion comes as a rare bright spot amid a series of mine closures that have reshaped the global diamond landscape. Australia’s Argyle mine — once the world’s leading source of pink diamonds — was permanently closed in 2020. In Canada’s Northwest Territories, three active diamond mines are also nearing the end of their productive lifespans: the Diavik Mine is scheduled to close in early 2026, the Ekati Mine by 2029, and the Gahcho Kué Mine around 2030. As these operations wind down, the global supply of natural diamonds is expected to tighten considerably.

Russia, however, remains a powerhouse. In 2024, the country produced 37.3 million carats of rough diamonds, representing about 32% of global supply and generating $3.335 billion in revenue. With the Udachnaya project ensuring decades of additional production, Alrosa is reinforcing its position as the world’s largest producer of rough diamonds by volume.

Digital innovation will play a key role in the mine’s future. Alrosa has already implemented AI-driven systems to monitor ore conveyors, assess truck loading, and remotely control rock crushers — part of a broader push toward safer and more efficient deep-mining operations.

Credit: Image courtesy of Alrosa.