OREANDA-NEWS. On September 05, 2008 the Executive Board of ALROSA held its regular meeting under the chairmanship of President Sergey Vybornov in Mirny, Republic of Sakha (Yakutia), reported the press-centre of ALROSA.

The Board discussed commencement of prospecting in Namibia to detect and identify primary diamond deposits.

Based on the report by ALROSA Chief Geologist Sergey Mityukhin, the Board acknowledged prospectivity and viability of diamond prospecting in the Vryheid-Ritfontein kimberlite field in Namibia. Given the available geological data and experience acquired by ALROSA geologists in 2007 in the course of similar prospecting carried out in the Warmbad area, the Board resolved to give its go-ahead to begin work in order to establish the diamond-bearing potential of the above field.

The works are to be carried out by geologists from the St. Petersburg Division of ALROSA’s Yakut Scientific and Research Center of ALROSA (CNIGRI). Preconcentration of samples would be made on site with subsequent sample concentrate delivery to Russia. Follow-up analysis would be carried out by ALROSA’s specialized exploration divisions.

The Board was reported on the proposed termination of the OJSC Severalmaz shareholding trust agreement, under which since 2003 92.34% of that company’s equity had been held in trust by CJSC IK SOLEX, subsidiary of OJSC IG ALROSA.

According to the independent expert analysis by Ernst&Young, in 2003 - 2008 the market value of the shares increased 15-fold, which proves that the trust management has been effective and the terms of the agreement have been fulfilled. Such factors as the construction of the OJSC Severallmaz Lomonosov Mining and Ore Treatment Complex and beginning of regular production and sales had a major material effect on the share value increase.

Taking into consideration the above, and also the fact that due to the changes in the Russian legislation some of the terms of the trust agreement have been rendered ineffective, it was resolved that the agreement on trust management of OJSC Severalmaz shares should be deemed performed and was to be terminated.

Having heard as next issue on the agenda the proposal on the financing scheme optimization for Luo- Camatchia-Camagico mining project, the Board resolved to submit the above proposal for approval of the ALROSA Supervisory Board.

One of the other issues on the agenda was the implementation of the Hydrochicapa Project in Angola. Based on the report by Vice-President Galina Klimenko, the information on the status of the hydropower project on the Chicapa River was taken note of by the Board.

Also other issues related to ALROSA current and potential operations were reviewed.