OREANDA-NEWS. January 12, 2009. The Supervisory Board of ALROSA held its meeting in Moscow, reported the press-centre of ALROSA.

The Supervisory Board voted to approve the proposal of the Company’s Executive Board that the Company's major economic and financial targets for 2008 be reviewed and adjusted – in connection with a downturn in the world diamond market and subsequent lower efficiency of diamond sales in Q4 of 2008, higher borrowing costs, and some other material factors. The rough diamond output in 2008 is planned at USD 1796.2 m, core product sales at USD 2330.7 m, including USD 157.2 m from sales of polished diamonds, with net profit at year end amounting to RUB 1422.4 m.

The Supervisory Board discussed and approved ALROSA tentative targets for 2009 and measures to overcome payments deficit in 2009:

- consolidated rough diamond production (including production by OJSC ALROSA-Nyurba) - USD 2   363.2 m.;

- rough diamond production by ALROSA Co. Ltd. - USD 1 869.3 m.;

- diamond sales by ALROSA Group, total - USD 2 683.9 m.;

including:
- sales by ALROSA Co. Ltd., total -     USD 2 300.9 m.;
- rough diamonds - USD 2 061.5 m.;
 - polished diamonds - USD 239.4 m.;
- sales by OJSC ALROSA-Nyurba, rough diamonds - USD 383.0 m.;

- ALROSA Co. Ltd. revenues from sales of products (works and services)- RUB 80 234.5 m.;

- ALROSA Co. Ltd. profit from sales of products (works and services) - RUB 23 027.6 m.;

- ALROSA Co. Ltd. net profit - RUB 3 874.5 m.;

- capital expenditure - RUB 15 128.3 m.;

- prospecting & exploration expenditure - RUB 3819.7 m.;

- r&d expenditure - RUB 748.0 m.

The approved tentative targets for 2009 provide for maintaining production at the 2008 level. Allocations for underground mine construction would be increased by RUB 835 m, compared with 2008. The plan provides for reduction in expenditures 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 costs  - altogether by RUB 4.588 billion.

At the same time the Supervisory Board instructed the Executive Board to improve the Company’s tentative targets for 2009 in order to increase the expected net profit.

Major elements of the Program for Energy Saving and Efficiency at ALROSA production facilities, structural divisions and subsidiaries for 2009-2011 presented by the Company's Executive Board were approved and an instruction issued to bring the program in line with the procedural guidelines of the RF Energy Ministry and submit it to the Supervisory Board in March 2009 for final approval.

The Supervisory Board endorsed its work schedule for 2009.