Russia’s diamond mining monopolist Alrosa has dug up a 468-carat amber-coloured diamond, the largest diamond it has ever found, after it reopened its Mirny diamond mine in Yakutia that has been closed for seven-years. The diamond has been named “New Sun” and Alrosa intends to put it up for auction.

"It is symbolic that it [the diamond] was found in the year of the 80th anniversary of the Great Victory. Therefore we decided to name it in honour of such a significant event for our entire country," said Pavel Marinychev, CEO of Alrosa.

The mine in the frozen tundra of the Republic of Sakha (Yakutia) in depths of Russia’s interior was closed in 2017 after flooding halted production and killed eight workers. The reopening of the mine, one of the largest in Russia and which has been working since Soviet-times, is expected to boost Russia’s diamond production.

The Mirny mine, once one of Russia’s largest sources of rough diamonds, has been reconstructed and Alrosa has resumed operations with a capacity target of 2mn carats annually.

"Today we are resuming production at the legendary Mir mine," said Alrosa chief executive Pavel Marinychev during the launch ceremony, Vedomosti reported on May 8. "This is an important step for the company and for the entire industry. It is important for the economy of the republic and the whole country."

Marinychev also noted that restarting the mine will ensure employment in the region and support Russia’s position as one of the world's top diamond producers. Alrosa holds a 99.6% share of Russia’s diamond output and accounts for nearly 30% of global supply, Vedomosti reported.

Alrosa stated that it expects Mirny to reach full design capacity by 2030, with the life of the mine projected to last until 2048. The total investment in restarting the mine stands at RUB70bn ($762mn). The company said it has implemented new safety measures and modernised its infrastructure following the 2017 incident.

The return of the Mirny mine comes as diamond sanctions are being imposed on Alrosa to crimp its business. Russia is one of the world’s biggest producers of diamonds, but due to lobbying by Belgium’s Antwerp, the home of European diamond trading, it was exempted from sanctions until the twelfth round and now these are only being phased in gradually. The diamond industry in Belgium has thrived for centuries and accounted for over half of Russia's total diamond exports of 28.2mn carats, worth approximately $2.5bn, in 2021. In response, the company has shifted its focus to markets in Asia and the Middle East. As bne IntelliNews reported, Russian exports of diamonds to Hong Kong were up 18-fold in the first last of last year. Dubai has also emerged as a major alternative market for diamond trading.