OREANDA-NEWS. May 25, 2012. On May 25, 2012, the Executive Committee of the Company met in Mirny chaired by ALROSA’s President Fyodor Andreev.

The Executive Committee discussed the report on ALROSA’s production program for the 1Q 2012. Rough diamond production by ALROSA Group over this period amounted to 8,088.4 thousand carats. Members of the Executive Committee considered the investment program for modernization of ALROSA’s Mirny Aviation Division aircraft fleet. The Executive Committee resolved to create ALROSA Airline, a subsidiary aviation company, and to include subsequently in the authorized capital the property of the aircraft complex of the Mirny Aviation Division. This matter will be submitted for consideration to the Supervisory Board of the Company.

The Executive Committee discussed and approved the medium-term development strategy for ALROSA’s projects in Africa. To expand and increase efficiency of evaluation of new areas on the African continent and in the European part of Russia, it was resolved to establish within the structure of ALROSA’s NIGP (Specialized Geo-Scientific Research Enterprise) a specialized Department for evaluation of new areas located in Saint Petersburg. The strategy also provides for the support of export of advance technology products (X-ray machines), manufactured by Burevestnik Scientific and Production Enterprise, the Company’s subsidiary. Besides ALROSA the buyers of this equipment today are the diamond mining companies operating on the African continent, in Angola, the South-African Republic, Botswana, and Lesotho. According to experts’ estimates, more than one third of rough diamonds produced worldwide are recovered from ore with the X-ray machines manufactured by Burevestnik.

The Executive Committee discussed and approved the concept of development of the ALROSA Group cutting and polishing complex up to 2021. The major object of Brillianty ALROSA branch is to obtain the information on the current state of the polished diamond market and its influence on development of the rough diamond market. The Executive Committee approved optimization of the cutting and polishing complex with the preservation on a mid-term horizon of the volumes and range of rough diamonds for cutting and polishing in the terms of 2012. The Executive Committee considered other issues, including introduction of the risk management system, improvement of investment activities, and preparation to navigation supply, as well as the results of purchases in the first quarter of 2012 and the procedure of using voluntary mechanisms of environmental responsibility under international standards.