ALROSA Executive Committee Meeting

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On October 20, 2010 the Executive Committee of ALROSA held its regular meeting under the chairmanship of ALROSA President Fyodor Andreev.

One of the items on the agenda was the corporate program of innovative development for the period up to 2018 developed by a few of the Company’s functional departments in collaboration with the Yakutniproalmaz design and research institute. The Committee resolved that the program should be further elaborated in its key aspects to ensure innovative development of the company and include estimates of the required investments and feasibility analysis of the proposed projects.

The Executive Committee considered the preliminary results of implementing «The Program of Energy Saving Measures at the Enterprises, Divisions and Subsidiaries within the Structure of ALROSA in 2009 — 2011».

It was pointed out that, in general, the costs of the implementation of the corporate energy saving program totaled RUB 81.9 million, with the net economic effect from its implementation estimated at RUB 177.4 million. In the course of the implementation a few energy saving technologies, new equipment and measuring devices have been introduced, primarily funded from allocations for the capital construction of mines, natural gas-heated boiler plants, heating units and other production facilities.

The Committee voted to give a go-ahead for the termination of the activities of the wood-processing division within the structure of the ALROSA-Lena shipping subsidiary. In spite of the implementation in 2009–2010 of a package of anti-crisis measures (including the optimization of the staff, cost reduction, reorganization of workshops, closure of unprofitable facilities), the subsidiary continues to be operating at a loss and manufacture uncompetitive products.

The Executive Committee also reviewed the implementation of the 2010 capital investment budget. To achieve the 2010 capital investment targets and uphold the key figures of the investment budget in 2010–2011, a set of special measures was approved, among which there is, in particular, advancing the beginning of the hoist engine erection and installation works at the Udachny underground mine, and installation of a grinding roller at Processing Plant No. 3 of the Mirny Mining & Processing Division.

Also a few other issues relating to the company’s current and future activities were discussed.

This page was last updated on 20 October 2010 at 09.47