ALROSA  is in the process of  converting  boiler-houses and power plants, owned by it at its various facilities, to make them conducive to the use of alternative fuels.

“As expected, it will allow ALROSA to reduce operating expenses by more than RUB 5.3 billion over the next 10 years,” the Company said while making the announcement.

This year,  ALROSA plans to  build a gas boiler-house in the Almazny settlement in the Mirny district of Yakutia, where it has negated the use of oil-fired boilers. At the Nyurba Mining and Processing Division, the Company is  modifying  its  diesel power plant so that it can  run on cheaper oil.

“Moreover, by the beginning of the year the Company had completed the reconstruction of three boiler houses serving Nyurba Mining and Processing Division, converting their boilers from diesel fuel to oil,” the Company stated. Also, in the Arylakh settlement of Mirny district, ALROSA built a gas boiler house, rejecting the use of  electric boilers. This has reduced the annual electrical energy consumption by more than 40 million kWh.

“Today, the cost of diesel fuel required to produce a unit of heat (gigacalorie), taking into account its delivery to remote areas, is more than double the cost of oil produced in Yakutia and about 10 times more than the cost of natural gas,” said Igor Zherdev, Head of ALROSA Production Performance Improvement Department “The cost of electrical heating is also very high. According to our estimates, conversion of boiler houses and power plants to alternative fuels will reduce the Company’s operating expenses by more than RUB 5.3 billion over the next 10 years.”

 ALROSA has also launched a feasibility study for what is calls “a promising initiative” regarding the gasification of facilities in Udachny Mining and Processing Division and Udachny town. “It provides for the replacement of the generation resource (electrical heating) with cheaper natural gas,” ALROSA said. “Should the effectiveness of this project be confirmed, it will be implemented in 2019-2021.”

Upgrading heat, water and power supply systems of the Company’s industrial facilities is part of the large-scale programme being implemented by ALROSA to improve operational efficiency and reduce operating costs, the Company revealed.