(PRESS RELEASE) ALROSA, the world’s leading diamond miner by volume in carats, released its first ever Impact Report covering the period 2010-2020. The report summarises the company’s social and economic progress in Yakutia, Russia’s largest and coldest region, which is home to 90% of ALROSA’s operations.
ALROSA’s diamond mining activities in Yakutia have significantly contributed to the region’s development, as the company strives to create better living conditions for its local communities. At the heart of ALROSA’s social mission in Yakutia is to increase access to housing, medical care, education and cultural activities, and provide local communities with improved infrastructure.
Yakutia is one of the world’s richest regions in terms of natural resources. However, it faces extreme weather conditions and all the infrastructure and public facilities need to be renovated on a regular basis. ALROSA is committed to ensuring the sustainable development and welfare of communities in the regions in which it operates, including working to improve local schools, hospitals and other key infrastructure in Yakutia.
Impact Highlights
- Economic Impact. From 2010-2020, ALROSA contributed around RUB 939 billion (USD 22 billion[1]) to Yakutia’s local economy. The Republic receives most of its funding from diamond mining and sales in the form of taxes and dividends. In addition to direct impact disclosed in the report, the company is also seeking to help local communities through the procurement of variety of goods and services from small & medium sized enterprises.
- Regional Support. The сompany contributed a total of RUB 408.3 billion (USD 8.4 billion) in taxes to the Republic’s budget and local budgets, while the total dividends paid to Yakutia and its eight administrative districts amounted to RUB 94 billion (USD 1.7 billion).
- Payroll Programme. The сompany’s salary contributions totaled RUB 334 billion (USD 7.2 billion). Over the past decade, ALROSA has strengthened its payroll programme by introducing a three-fold increase in the average salary of its local employees.
- Social Investments. Between 2010-2020, ALROSA invested RUB 103.9 billion (USD 5 billion) in social development, infrastructure, housing, and utilities in the region. On top of this, the сompany also makes annual pension contributions which amount to around RUB 3-4 billion (USD 29-38 million). In 2020 alone, ALROSA contributed a total of RUB 10.2 billion (USD 141 million) to social investments and pensions.
Sergey Ivanov, CEO of ALROSA, said: “We are pleased to publish our very first Impact Report. This is an important milestone that demonstrates our commitment to transparency and implementing our long-term sustainable development strategy. Looking ahead, our key focus remains ensuring the wellbeing of our people whilst leveraging our long-standing presence in the region to sustainably unlock its full potential. We are therefore creating jobs, guaranteeing our workers a competitive salary and benefits, and helping build schools, hospitals and sports facilities. Much work remains to be done, and we look forward to continuing to build on our progress to ensure a sustainable future for generations to come.”
Learn more about its 2010-2020 progress by reading the Impact Report.