OREANDA-NEWS. December 24, 2013. ALROSA’s Supervisory Board approved the Company’s budget for 2014.

According to the preliminary estimates of the management statements, in 2013 diamond mining by ALROSA Group will exceed 36 million carats as compared with 34.4 million carats in 2012. The purchase of OJSC Nizhne-Lenskoe, the increased diamond grade on Yubileynaya pipe and the increased diamond mining on Mir underground mine are among the major growth drivers.

In 2014 ALROSA Group is planning to preserve its diamond mining at the level of 2013. The Company’s forecast is a stable balance between demand and supply on the rough diamond market with a potential gradual growth in rough diamond prices by 2-3% throughout 2014.

The priority target of ALROSA Group for 2014 is to keep its world’s leading position in terms of rough diamond mining and develop its production facilities and mineral resource base. ALROSA’s plans for 2014 include:

– to complete the construction of the open-pit mine on Botuobinskaya pipe, Nyurba Mining and Processing Division, where diamond mining is to start in 2015;
– to put into operation the first start-up complex of the Udachny underground mine;
– to put into operation the Ebelyakh and Ruchey Gusiny placers, OJSC Almazy Anabara;
– to launch at full capacity, 3 million tons of ore per year, the second module of the processing plant of Lomonosovsky Mining and Processing Division, OJSC Severalmaz.

The capital investment by ALROSA Group is to amount to RUB 39 billion, remaining at the level of 2013, with the investment in underground mines increased by 30% as against 2013, up to RUB 14 billion. The bulk of the investment will go into the construction of the Udachny underground mine, where the most extensive works are planned in 2014 before putting it into operation.

In 2014 ALROSA will start preparing for the new contract period 2015-2017. Long-term agreements with major manufacturers of polished diamonds and jewelry remain ALROSA’s key priority, and the Company expects this number to grow in the new contract period. Making up the customer list, ALROSA will take into account its experience of cooperation and amount of previous work with the customers under long-term agreements and spot transactions.

Focusing on the core diamond business and pursuing the program of exit from non-core assets, increasing the operating efficiency and optimizing the corporate management model, as well as increasing the number of independent directors in the Supervisory Board of ALROSA, are among the priorities of ALROSA Group for 2014.