OREANDA-NEWS. May 19, 2010. A regular meeting of the ALROSA Supervisory Board took place in Moscow, reported the press-centre of ALROSA.

The Board resolved on convening the next annual general meeting of ALROSA shareholders (GMS) on June 26, 2010 in Mirny, Republic of Sakha (Yakutia), and approved the agenda of the GMS. The agenda, inter alia, includes approving the Company’s annual report, financial statements, including the P&L statement for 2009, profit distribution, and the amount of dividends to be paid based on the 2009 performance results, as well as the timeframe and mode of dividend payment.

It was recommended to the GMS to approve dividend payments for 2009 in the amount of RUB 916. 3 per share.

Also the Board recommended that the GMS approve distribution of the net profit for 2009 as follows:

The net profit total of RUB 2,348.4 million will be allocated for:

    - investments in non-financial assets (construction of underground mines, exploration, implementation of social programs) - RUB 1,910.3 million;

    - long-term financial investments - RUB 70.5 million;

    - provisions for the reserve fund - RUB 113.7 million;

    - dividends - RUB 249.9 million.

The Board reviewed development guidelines for ALROSA for 2010-2012, including, in particular, ALROSA financial model for the next three years proposed by the Company’s Executive Committee.

The model provides for the production by the ALROSA Group of companies of 102,321 thousand carats of rough diamonds over the projection period. The aggregate proceeds from rough diamond sales are expected at USD 9,548.1 million. The allocations for the construction of underground diamond mines will amount to USD 24,728.4 million. In 2012 the underground diamond mines of Aikhal and Mir are scheduled to begin producing at their design capacity (500 thousand and 1 million tons of ore, respectively), and the Udachny underground mine is planned to produce its first 25 thousand tons of ore.

ALROSA net profit is projected to reach RUB 22,050.5 million. The allocations for prospecting and exploration will amount to up to RUB 6,236 million. Some RUB 1,977 million will be allocated for construction of social facilities. Financial provisions of RUB 1 billion are also planned.

The Board, among other things, commissioned to the Executive Committee to ensure lower credit and loan service costs. According to the proposed financial model, by 2012 the Company’s aggregate liabilities should not exceed USD 3,013.5 million.

Gennady F. Piven’s and Valery K. Kolodeznikov’s mandates as members of the ALROSA Executive Committee were terminated due to the termination of their employment contracts with ALROSA. The Board approved the appointments of Vice-Presidents Sergey N. Pushkin and Vassily B. Grabtsevich as new members of the Executive Committee.