AGD, Grib Diamonds Parent, bankrupted – JCK
AGD Diamonds, owner of Grib Diamonds, which sells rough from Russia’s only non-governmental diamond mine, has been declared bankrupt by VTB Bank, the latter confirmed to JCK.
According to an article in a Russian newspaper Kommersant, Moscow-based VDB, which is considered AGD Diamond’s main creditor, has now effectively taken over the company. The newspaper added that local lawyers believe this is the reason VDB forced the diamond miner out of business.
The bank, meanwhile, claimed by email that “VTB has initiated bankruptcy proceedings against AGD Diamonds in order to protect its financial interests as a creditor.
“This procedure will not affect the current operational and financial activities of AGD Diamonds. The bankruptcy process will in no way affect the company’s work with counterparties, customers and end customers. AGD Diamonds works closely with VTB Bank, and the company maintains all continuous production and mining processes aimed at achieving diamond production goals as a full cycle mining enterprise – exploration, production, processing , sale – while maintaining the basic principles of customer policy.
In addition, Grib Diamonds CEO Igor Prokhorenko has left the company, according to a report on the Russian industry website Rough and polished. He will be replaced by Gennady Piven, who was previously AGD’s first deputy managing director, according to the publication.
AGD did not respond to a request for comment at the time of posting.
AGD sells the output of the Grib diamond pipeline in northwest Russia, which is one of the largest diamond mines developed in the past 10 years. The pipe was discovered in 1995 and was named after Russian geologist Vladimir Grib.
The mine was first developed in 2008, with its first diamonds produced in 2014. The surface mine is said to have possible reserves of 52 million carats.
Top: A piece of rough from Grib Diamonds (photo courtesy of Grib Diamonds)
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