Svedala receives SEK 50 M order from Russia€s largest diamond mine

Svedala receives SEK 50 M order from Russia's largest diamond mine Svedala Industri has received an order worth approximately SEK 50 M from Alrosa, the largest and most important diamond mining company in Russia. Alrosa is also Russia's largest exporter of uncut diamonds to countries throughout the world. The quality of its diamonds - which carry the "jewelry" classification - is exceeded only by Botswana's diamonds. The Alrosa mine is located in the Yakutia diamond field, the largest in the world, in Sakha province in Siberia. The order is for a complete diamond-recovery system. It includes equipment used in crushing, grinding and separating diamonds, as well as dressing. Svedala's broad system know-how was decisive factor According to Peter Kohle, Senior vice president Svedala, responsible for systems, Svedala's complete know-how pertaining to all processes for extracting minerals was what earned the company the order. "Alrosa has also had great confidence in Svedala as a supplier of mining equipment earlier," Mr. Kohle said. "About three years ago we delivered a sorting plant that consisted of more than 50 screens, and in 1998 we received an order worth SEK 75 M for a mill and milling equipment. The mill has been installed and is operating full-time". The diamond field in Yakutia was discovered in the early 1950s and the operating standards in the mines are relatively good, with heavy emphasis on service and maintenance. To guarantee the customer maximum availability of our equipment, we have our own people in Alrosa who check and service. Svedala's equipment continuously." Increased exports of diamonds from Russia Alrosa, which works with some of the world's largest companies in the diamond trade, has received permission from the Russian government to increase its diamond exports. As a result, additional investments are planned throughout the mining area. Peter Kohle: "We have for a number of years had very fine cooperation and exchanges of experience with many of the Russian diamond mines in Siberia, and we hope to obtain additional business in the area." Complicated transport arrangements All of the Svedala equipment will be shipped by boat to St. Petersburg, from where it will then be flown to Mimii, approximately eight hours by air. Helicopters will carry the equipment the final 300 kilometers up to the mine in Nyurbinskoya. Diamonds from volcanic eruptions Diamonds are formed originally by a meteor or by a combination of extreme heat and extreme pressure. The diamonds mined in the Yakutia field resulted from a volcanic eruption and are found in an extinct volcanic "pipe," the fissure where the lava escapes. The raw diamonds are imbedded in rocklike kimberlite, which is mined and treated. The mining takes place by first blasting and creating roads in the fissures, which are about 300 meters deep. The material is then transported by truck to the plant for further processing. Svedala Industri AB Information Services & Market Communications Tel. No. +46 40 24 58 47 Mobile +46 705 24 58 47 Svedala Industri is the world's leading manufacturer of equipment and systems for construction and mineral processing industries and materials handling. Annual sales of the Svedala Group, which has subsidiaries in more than 40 countries, amount to approximately SEK 15 billion, with about 11,000 employees. Operations outside Sweden account for slightly more than 95%. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/12/19990212BIT01040/bit0001.doc http://www.bit.se/bitonline/1999/02/12/19990212BIT01040/bit0002.pdf