Focus on Innovation

ALROSA’s strategic guidelines clearly provide for innovation as one of its development thrusts, and the reporting period has shown that we have made the correct choice of development priorities and direction. The senior management of ALROSA have created all conditions for and laid down the foundations of a systematic approach toward seeking out innovative ideas and developments in and outside the company, i.e. in small business, university and academic R&D centres, and in cooperation with foreign partners. Today, more than ever, the company is open to innovations. 

In accordance with the government’s objective of raising the technological level of the company to technological leadership in the world diamond mining business and to find a systematic solution to problems in the field of innovative development, key goals and milestones in developing and deploying new technologies, innovative products and services, innovations in management, and modernization of existing technologies were: 

  • raise economic efficiency of diamond mining;
  • raise energy efficiency, industrial and environmental safety of core production.

Innovation development activities in the company are pursued in accordance with the ALROSA Programme of Innovation Development and Technological Modernization for 2011-2018, which was designed with due consideration of the results of the ALROSA technical audit performed by Ernst & Young (CIS) B.V. and SRK Consulting (UK) Limited, and approved by the ALROSA Supervisory Board.

Key Goals of the year

Key goals and objectives in developing and deploying integrated measures aimed at the promotion of research and engineering work and implementation of innovative projects were defined as follows:

  • implementation of the ALROSA Programme of Innovation Development jointly with R&D divisions, functional services of the company's administration, core business units, subsidiaries and affiliated companies;
  • promotion of joint programmes with development institutes, institutions of higher education and scientific organizations, innovative small and medium-sized businesses in the Republic of Sakha (Yakutia);
  • creation of new economically viable technologies for developing deposits with low diamond grades, industrial deposits and deposits in remote areas away from production infrastructure;
  • improved efficiency of geological exploration and prospecting activity. 

 

Changes in ALROSA corporate governance structure for innovations management in 2012  

1. Position of ALROSA VP for Innovations introduced. 

2. ALROSA Regulations of Innovations Activities designed.   

3. A concept and Expert Council under the President of ALROSA were designed and introduced, with participation of leading scientists of the Russian Academy of Sciences, and Russian and foreign universities. Key objectives of the Expert Council are as follows:  

  • full assessment of incoming promising proposals in the field on innovation and technological modernization of ALROSA;
  • expert review of engineering proposals coming from Russian and foreign R&D centres;
  • development of recommendations on follow-up work with regard to specific proposals and preparation of expert reviews.  

ALROSA corporate governance structure in the field on innovative development and technological modernization 

Major Events of the ALROSA Programme of Innovation Development and Technological Modernization in 2012

Summarizing the results of the reporting period, specialists of the ALROSA Centre of Innovations and Technology prepared a progress report on the implementation of the Programme of Innovation Development and Technological Modernization for 2012.

The report provides systematized information on all activities in the field of innovation development and technological modernization as well as key performance indicators showing the high level of efficiency of the actions taken. 

Deployment of new technologies

Deployment of new production technologies

Programme to improve energy  efficiency

Programme to improve environmental performance

Technology thrusts of the 2012 Programme of Innovation Development

Number of projects

Key deliverables

Scientific research and engineering developments and deployment of the results thereof.  

Geological exploration & prospecting

2

Deployment of high-production drilling equipment 

Innovative product (service) launch on the market.

Diamond mining 

7

Deployment of technology to open mineral deposit with near-vertical cross-overs and steep slopes.

Development and deployment of new methods of forming workspace of deep open-pit mines. 

Remote-controlled mining during open-pit clean-up operations.  

Efforts to create and develop a research infrastructure and bench-to and testing facilities. 

Efforts to improve management of innovation development and business processes. 

Processing & sorting

11

Construction of recycling water supply facility at Processing Plant No. 16 Nyurba MPD

Beginning of the deployment of a multi-stage scheme of ore concentration at Processing Plant No. 3.  

Manufacturing and deployment of modernized automatic diamond sorters by colour.

Research and engineering community engagement. 

International cooperation and foreign economic activity. 

Energy efficiency & energy conservation

3

ALROSA Energy Conservation & Improved Energy Efficiency Programme up to 2012 developed.

Use of energy efficient LED sources of light. 

 
 

Construction

1

Pilot application of basalt-plastic fittings. 

36 projects

38 research topics

178 studies

47 deployed R&D developments

Informatization & automation 

7

Deployment of automated control systems of mining and transportation works at the Nyurba and Botuobinskaya pipes of the Nyurba MPD.  Completion of Phase One of deployment of a centralized system of monitoring motor transport operations.  

Environmental protection

2

Completion of Phase One of deployment of environmental management system. Environmental audit.

Development of an efficient reclamation method taking into account the specifics of natural and climatic conditions of the northern region. 

 

Scientific research and engineering work

3

Completion of Phase One of deployment of CAD system and development of a plan for transition to BIM technologies.

2012 Key Results

The implementation of the Innovation Development Programme helped to deliver key performance indicators that exceed the 2012 planned deliverables, which are set forth in the ALROSA Long-Term Development Plan up to 2021.   

Key Performance Indicators of the ALROSA Innovation Development and Technological Modernization Programme 

 

2010

2011

2012

2012

Actual data vs. planned values, % 

actual data

actual data

planned

actual data

1. Indicator of R&D efficiency vs. financing 

 

 

 

 

 

Size of R&D financing, % of revenues  

0.18

0.23

0.33

0.38

+15.2%

Number of R&D projects completed and deployed in production, pcs.  

23

27

29

47

+74.1%

2. Technological leadership performance indicator 

 

 

 

 

 

Number of patents and other titles of protection to improvement and innovations over the year, pcs. (received). 

10

14

12

17

+41.7%

3. Innovation performance indicator

 

 

 

 

 

Innovation deployment performance indicator, rouble/rouble.

0.92

0.87

0.39

1.19

+305.1%

R&D deployment performance indicator, rouble/rouble. 

0.92

1.11

1.13

1.37

+21.2%

As part of the programme implementation the company received state support in the form of subsidies to the amount of RUB 65.0 million.

The economic effect from the implementation of the Innovation Development Programme in 2012 is RUB 743.0 million. According to estimates, the economic effect from the deployment of innovative developments in the reporting period will be at least RUB 565 million.

Advanced engagement with external innovation development community 

The qualitative performance indicators of the programme include, above all, the creation of multiple modes of efficient cooperation and engagement with different participants in the innovation development process. The company cooperates with an increasing number of universities, research organizations, and small and medium-sized businesses in implementing innovation-driven projects in various spheres of operations. 

ALROSA Modes of Engagement in the Field of Innovations in 2012 

Engagement

Results

Engagement with small and medium-sized businesses in Omsk and Novosibirsk Regions, and the Republic of Sakha (Yakutia). 

Preparing and signing long-term partnership agreements aimed at joint development and deployment of innovative technologies.  

Participation in the work of the Russo-Austrian working group on technological cooperation. 

Official submission to the Austrian side of a memorandum on cooperation in the field of innovation development with Austrian organizations that possess mining know-how.  

Scientific conference organized jointly with the IPKON Institute of the  Russian Academy of Sciences on Clean-up of the Mir Diamond Pipe Located under the Depth of Metegero-Ichersky Aquifer System

Representative of the following government agencies and industry associations were invited to participate in a discussion of hydrogeological problems with the aim of developing operational risk mitigation measures at the Mir Mine, i.e. the Federal Service of Environmental, Technical and Nuclear Supervision (Rostekhnadzor); the Russian Union of Mineral Surveyors; the Russian Union of Mineral Miners; as well as leading institutes of the Russian Academy of Sciences, mining institutes, and Russian and foreign companies.   

Cooperation with the State Committee on Innovations and Science of the Republic of Sakha (Yakutia) 

Promotion of cooperation aimed at creating a territorial cluster for innovation development, designing a concept and a road map of the regional Yakutia Technology Park. 

Other types of external partner engagements  

Cooperation with universities in the field of training, research and development, agreements on technical cooperation with international, foreign and Russian companies, participation in the work of the IR&D Directors’ Club, cooperation with Skolkovo, technological platforms, partnership programmes with small and medium-sized businesses active in the field of innovation development, etc.  

In the reporting year, we made a major step forward toward further improvements in the corporate management system in the field of innovation development and organization of business processes. ALROSA created for the first time an integrated management system and deployed new mechanisms for planning and accounting for innovation development costs. In addition, the system provides for the introduction of tools for cost and benefit analysis.  One such instrument was the creation of a reporting system for the operating management system that on a quarterly basis reflects planned and actual values of performance indicators for cooperation of structural units with the R&D sector (contracts with research centres, universities and other academic institutions);  target university training of specialists; monitoring of the implementation of the Innovation Development Programme, which provides for the collection and processing of information and data from all structural units of the company. 

A number of important innovation projects of ALROSA in 2012 won recognition by professional communities, becoming a source of inspiration and pride for the company. 

In 2012, the first open contest of innovation projects was held as part of the implementation of the ALROSA Innovations Development Programme. The main objectives of the contest were: 

  • innovation profiling and promotion of their deployment in the company’s operations;
  • encouragement and motivation of creative activity, talent spotting and support of gifted innovators from different parts of the Russian Federation and their projects aimed at solving sustainability issues facing ALROSA.  

Six out 35 projects submitted to the contest passed the primary review stage, and the authors of these projects received awards and cash prizes.  

ALROSA Key Results and Achievements in the Field of Innovations, 2012 

 Projects/events

Our results and achievements 

A three-year-long project Creation of an Integrated Environmentally Safe Innovative Technology for Mining and Processing Diamantiferous Ore in Arctic Conditions in cooperation with the M.K. Ammosov North-Western Federal University (Yakutsk), said cooperation being a form of state subsidy.   

The project was submitted to the St. Petersburg Technical Fair and Contest for the best innovation project and the best R&D work of the year. 

Joint development and deployment of efficient technologies and innovation projects.

ALROSA and Ammosov University received a Certificate, First Degree and a Gold Medal for their design of an integrated environmentally safe innovative technology for mining and processing diamantiferous ores in the Extreme North at the St. Petersburg Technical Fair. The award was given under the category Efficient Deployment of Innovations in Industrial Processes & Modernization of Production.

A three-year-long business (enterprise) management project with the use of the self-evaluation EFQM model in the ALROSA R&D branch Yakutniproalmaz Institute.

The project was submitted to the 8th International Quality Contest of Central and Eastern European countries. 

At the General Assembly of the European Organization for Quality (EOQ), held in Chisinau, Moldova, ALROSA represented by its R&D arm, the Yakutniproalmaz Institute, received a certificate in the First Prizewinner Category of the 8th International Quality Contest of Central and Eastern European Countries. The company was recognized for high business excellence and the appropriate awards were presented at a ceremony attended by the leaders of national organizations for quality of European countries.  

Participation in the ХV Moscow Archimedes International Show of Innovation Technologies 

ALROSA received gold, silver and bronze medals at the fair. 

Participation in the International Innovations and Development Forum 

ALROSA was awarded a Diploma for Innovations and Development – 2012