OREANDA-NEWS. February 06, 2012. The Executive Committee of the Company chaired by ALROSA's President Fyodor Andreev met at the Company's head office in Mirny. The Executive Committee discussed implementation of the exploration program up to 2018 and the results of the exploration complex in 2011. The Company's expenditures on exploration and onsite exploration in 2011 amounted to approximately RUB 4 billion, in 2012 it is planned to allocate over RUB 5 billion 358 million for these purposes. The aggregate increment in diamond reseOn February 3, 2012, the Executive Committee of the Company chaired by ALROSA's President Fyodor Andreev met at the Company's head office in Mirny, reported the press-centre of ALROSA.

The Executive Committee discussed implementation of the exploration program up to 2018 and the results of the exploration complex in 2011. The Company's expenditures on exploration and onsite exploration in 2011 amounted to approximately RUB 4 billion, in 2012 it is planned to allocate over RUB 5 billion 358 million for these purposes.

The aggregate increment in diamond reserves for 2011 amounted to some 30 million carats, the forecast resources of Р1 category-to some 47 million carats, primarily, resulting from the exploration of the Nyurbinskaya placer and upper levels of the Zarya pipe. Over the reporting period, the licenses for exploration and mining of five new diamond deposits (Verkhne-Munskoye, the pipes Dalnyaya, Mayskaya, the alluvial mines Ebelyakh and Gusinaya) were obtained, exploration projects were drawn up and their implementation commenced.

In November 2011 the Company received a state certificate establishing the discovery of a new diamond deposit-the Zarya pipe. The Executive Committee discussed a reform of ALROSA's aviation assets. The key tasks of reforming the Mirny Aviation Division are to ensure the year-round transport accessibility in Western Yakutia, connection with the near-by regional centers (Yakutsk, Irkutsk, Novosibirsk, Khabarovsk, and Krasnoyarsk), with the Russia's central regions and resort zones, meet the Company's internal demands (aerosurveying, cargo transportation, supply deliveries to exploration expeditions, etc.). Besides, within the scope of the reform, the air fleet is to be replaced and modern energy-efficient aircraft are to be bought, flight safety being a major priority.

The Executive Committee found it expedient to establish a detached affiliate to handle the Company's aviation operations, and to preparing the relevant documentation for the Supervisory Board to examine the gratuitous transfer of the Company's airport assets to the federal ownership. Besides, the proposals on the replacement of the aircraft will be prepared within a month. Also, the Program of optimizing the structure of ALROSA's subsidiaries and controlled companies up to 2021 was approved. It is planned to cut down the number of the Company's subsidiaries and controlled companies by 2021. ALROSA is planning to retain the subsidiaries and controlled companies that are directly involved in the core production, in implementation of the sales policy and carry out social functions.

The Executive Committee discussed the development strategy of CJSC Geotransgaz and LLC Urengoy Gas Company in the framework of the Company's liabilities to repurchase these assets from VTB Group. The plans for joint development, together with OJSC Zarubezhneft, of three gas and gas-condensate fields - Beregovoy, Ust-Yamsoveysky and Urengoysky - in the north-west of Purovsky District, Yamalo-Nenets Autonomous District. The license-holders are CJSC Geotransgaz and LLC Urengoy Gas Company. To become a part of the project, Zarubezhneft intends to purchase from ALROSA blocking stakes in the authorized capital of the companies-license holders.

The relevant agreement of intent was signed by ALROSA's President Fyodor Andreev and General Director of Zarubezhneft Nikolay Brunich. Besides, the Executive Committee considered the reform of ALROSA's cutting and polishing facilities, approved the list of candidates proposed in 2012 to be nominated for election to the management and governance bodies of the subsidiaries and controlled companies, and approved alterations and amendments in some of ALROSA's regulatory documents.rves for 2011 amounted to some 30 million carats, the forecast resources of Р1 category-to some 47 million carats, primarily, resulting from the exploration of the Nyurbinskaya placer and upper levels of the Zarya pipe.

Over the reporting period, the licenses for exploration and mining of five new diamond deposits (Verkhne-Munskoye, the pipes Dalnyaya, Mayskaya, the alluvial mines Ebelyakh and Gusinaya) were obtained, exploration projects were drawn up and their implementation commenced. In November 2011 the Company received a state certificate establishing the discovery of a new diamond deposit-the Zarya pipe. The Executive Committee discussed a reform of ALROSA's aviation assets.

The key tasks of reforming the Mirny Aviation Division are to ensure the year-round transport accessibility in Western Yakutia, connection with the near-by regional centers (Yakutsk, Irkutsk, Novosibirsk, Khabarovsk, and Krasnoyarsk), with the Russia's central regions and resort zones, meet the Company's internal demands (aerosurveying, cargo transportation, supply deliveries to exploration expeditions, etc.). Besides, within the scope of the reform, the air fleet is to be replaced and modern energy-efficient aircraft are to be bought, flight safety being a major priority.

The Executive Committee found it expedient to establish a detached affiliate to handle the Company's aviation operations, and to preparing the relevant documentation for the Supervisory Board to examine the gratuitous transfer of the Company's airport assets to the federal ownership. Besides, the proposals on the replacement of the aircraft will be prepared within a month. Also, the Program of optimizing the structure of ALROSA's subsidiaries and controlled companies up to 2021 was approved. It is planned to cut down the number of the Company's subsidiaries and controlled companies by 2021. ALROSA is planning to retain the subsidiaries and controlled companies that are directly involved in the core production, in implementation of the sales policy and carry out social functions.

The Executive Committee discussed the development strategy of CJSC Geotransgaz and LLC Urengoy Gas Company in the framework of the Company's liabilities to repurchase these assets from VTB Group. The plans for joint development, together with OJSC Zarubezhneft, of three gas and gas-condensate fields - Beregovoy, Ust-Yamsoveysky and Urengoysky - in the north-west of Purovsky District, Yamalo-Nenets Autonomous District. The license-holders are CJSC Geotransgaz and LLC Urengoy Gas Company. To become a part of the project, Zarubezhneft intends to purchase from ALROSA blocking stakes in the authorized capital of the companies-license holders.

The relevant agreement of intent was signed by ALROSA's President Fyodor Andreev and General Director of Zarubezhneft Nikolay Brunich. Besides, the Executive Committee considered the reform of ALROSA's cutting and polishing facilities, approved the list of candidates proposed in 2012 to be nominated for election to the management and governance bodies of the subsidiaries and controlled companies, and approved alterations and amendments in some of ALROSA's regulatory documents.