At its meeting on 25 September, the ALROSA Executive Committee considered matters relating to the Company’s current operations, in particular, approving the draft adjusted consolidated budget of ALROSA for 2014, and measures to improve performance of the company’s cutting and polishing operations.
The ALROSA Executive Committee considered the draft adjusted consolidated budget of the Company for 2014. Adjustments were made to address the positive market trends in H1, and fluctuations in the USD to Ruble exchange rate. The adjusted budget will be subsequently put for approval of the Company’s Supervisory Board.
The agenda also included a discussion on measures for improving the performance of the ALROSA cutting and polishing facilities.
The Company’s diamond manufacturing capacities are composed of the Moscow-based subsidiary Brillianty ALROSA (ALROSA Diamonds), the Barnaul-based “Barnaul Kristall Cutting and Polishing Factory” LLC (100%) and the Orel-based “Orel-ALROSA” LLC (51%).
In 2013, to improve performance of its cutting and polishing facilities ALROSA launched a scheme of re-allocating rough supplies among its cutting factories depending on costs and margin in different categories of rough diamonds. The preliminary results of the trial were found satisfactory.
To advance the development of the company’s polished diamonds business a merger of the current diamond manufacturing operations is proposed, with the main production facilities based in Barnaul. Along with that, the company contemplates inviting large international jewellery manufacturers as strategic partners in this business.
The factory in Moscow will continue to specialize in large and fancy-colour diamonds to be offered for sale through international auction houses under the ALROSA marketing program.
The Executive Committee also approved draft ALROSA Policy on Sustainable Development and Corporate Social Responsibility.
Currently, principles of sustainable development are incorporated into management processes by a host of different documents – Social Policy, Collective Treaty with the Profalmaz Trade Union, Environmental Policy, ALROSA ALLIANCE Guidelines on Responsible Business Practices, etc. The single document systematizes basic principles and approaches of corporate social responsibility that comply with best international practices.
The Policy embraces main features of the Company’s activities in the sphere of sustainable development and corporate social responsibility: environmental responsibility, industrial safety, human resources management, charity and support for local communities, economic efficiency.
The Executive Committee also considered the results of procurement activity in H1 2014.