OREANDA-NEWS. On December 10, 2008 the ALROSA Executive Board held its meeting in Mirny, Republic of Sakha (Yakutia), under the chairmanship of ALROSA President Sergey A. Vybornov, reported the press-centre of ALROSA.

The main issue on the agenda was adjustment of economic and financial targets for 2008 and 2009.

In connection with a downturn in the world diamond market and subsequent reduction in diamond sales in Q4 of 2008, higher borrowing costs, and some other factors of material effect, the Board approved the proposed adjustment of ALROSA economic and financial targets for 2008. However the diamond production target will be retained as previously approved.

In line with the adjustment plan the expected net profit may shrink to RUB 1. 422 billion.

Based on its estimate of the current state of the diamond market the Board sees as its key priority maintaining production targets at previously planned levels.

The tentative targets for 2009 were discussed and approved. Production would be maintained at the 2008 level. Allocations for underground mine construction would be increased by RUB 835. The plan provides for reduction in spending on capital construction (except underground mine construction), exploration, sponsor aid and charity, regional development, other projects that are not related to the core activity, management of RUB 4.588 billion.

ALROSA has no plans to cut down employee remuneration.

The adjusted 2008 targets and tentative targets for will be submitted to the Supervisory Board for final approval.
   
The Board reviewed the status of the Mir, Aikhal and Udachny underground mines construction now in progress in line with the diamond production goal-oriented programme "ALROSA Co. Ltd. Development Guidelines for 2006-2015".  The following main underground mine construction related objectives were approved for 2009:

- commissioning of Phase 1 of the first start-up facility at the Mir Mine (with a capacity of 150, 000 tons of ore p.a.); 

- completion of construction works and pre-commissioning of the second start-up facility at the Aikhal Mine (with a capacity of 250, 000 tons of ore p.a.);

- completion of the skip shaft sinking works at the Udachny Mine.
At present the works at the above sites are being carried out ahead of schedule.

The Board approved the ALROSA energy capabilities development strategy for Western Yakutia and fuel and energy balance for years until 2015.

The following new internal regulations were approved: "On ALROSA R &D Budget Planning and Accounting", amended "On Retirement Benefits for ALROSA Co. Ltd. employees".

Other issues related to the Company’s day-to-day activities also were discussed.