OREANDA-NEWS. February 25, 2011. The ALROSA Executive Committee held its regular meeting in Moscow under the chairmanship of President of ALROSA Fyodor Andreev, reported the press-centre of ALROSA.

The Executive Committee reviewed and voted to approve the development strategy of ALROSA for the period up to 2018, in which the strategic objectives for the Company in the mid-term are defined as strengthening its leadership position on the world market, advanced replacement of depleting reserves and achieving an increase in the Company’s  market capitalization.

Before 2018 the Company is to complete the construction of and place into operation the underground mines at its Mir, Aikhal and Udachnaya pipes, considerably scale up its prospecting and exploration efforts, implement the core production facilities modernization program, complete the formation of its customer network, based on the principles of geographical diversification of sales and entering into long-term sales contracts with the largest rough diamond consumers, ensure the implementation of social partnership programs and environmental protection programs in the areas where its main operations are located.

The major targets of the ALROSA strategic development program up to 2018:

- rough diamond production by the ALROSA Group to be increased by 2018 to 39.6 million carats, as compared to 32.8 million carats in 2009;

- the projected sales of rough diamonds to amount to circa USD 35,132 million;

- investment budget in 2009-2018 to amount to RUB 215,302.5 million, including:

- long-term investments of RUB 32,140.8 million;

- investments into non-financial assets of RUB 148,201.5 , including those in construction of RUB 147,151.4 million;

- investments into technical modernization and replacement of run-down equipment of RUB 34,960.2 million;

- exploration budget in 2011-2018 to amount to 25,594 million;

- net profit for this period to reach RUB 93.87 billion;

- ALROSA’s long-term debt by the end of 2018 not to exceed USD 1.9 billion.

This is a framework program to be further adjusted in accordance with the technical decisions which have been adopted in order to increase the efficiency of mining at the Jubilee and Komsomolskaya pipes, and the construction of the Udachny underground mines.
The ALROSA development model up to 2018 is also to be adjusted subject to the basic model selected for the development of Timir, the iron ore project in Southern Yakutia, after the project feasibility study is approved and the negotiations with potential investors are finalized.

The Executive Committee reviewed the results of the implementation of the package of measures aimed at improving the environmental situation in the areas of the Company’s operations for the period from 2006 to 2010. During this period the Company’s allocations for nature conservation and environmental protection totaled RUB 2,721.98 million.

The Executive Committee approved “The Program of Real-Estate Lending to ALROSA Employees for 2011-2018” and “The Regulations on Compensating the Company’s Employees for Interest Expenses Incurred under Mortgage Loans”.

This Program and Regulations are aimed at providing corporate support to the Company’s employees wishing to buy housing, and creating an appropriate financial and legal mechanism of compensating the company employees for their mortgage expenses.

The Executive Committee also reviewed the implementation of ALROSA’s corporate integrated information system.

Along with that, the Executive Committee considered a few other issues pertaining to the Company’s current and future activities.