ALROSA Supervisory Board Meeting

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On December 29, 2009 the Supervisory Board of ALROSA held its meeting in Moscow under the chairmanship of Alexey Kudrin, Vice Premier of the Russian Federal Government and RF Finance Minister.

The Board elected Alexander A. Akhpolov, Director of the RF Finance Ministry Administrative Department to serve as Vice-Chairman of the Board.

The Board resolved on changes in the ALROSA Executive Board membership.

The resignations from the Board for the reason of termination of their labour contracts with ALROSA of Alexey Veselkov, former Managing Director, Galina Klimenko and Anatoly Popov, former vice-presidents, were endorsed. Also the resignation of Pavel Tretyakov, ex-Chaiman of the ALROSA employees Interregional Labour Union, who stepped down for the reason of his transfer to another appointment, was accepted. It was resolved to approve the appointment as a new member of the Board of Yuri Okoyomov, Vice-President of ALROSA.

The agenda also included the review of the anticipated financial and production results of ALROSA for 2009, and the financial budget and key targets for 2010.

By year end of 2009 the aggregate rough diamond production by ALROSA Group in terms of value amounted to USD 2 244.1 m, the rough and polished diamond sales amounted to USD 2187.2 m. The net profit of RUB 3 182.6 m is expected.

The following key targets for 2010 were approved:

Rough diamond production by ALROSA Group — USD 2 314.4 m;

Rough diamond production by ALROSA Co. Ltd. — USD1 723.5 m;

Revenues from core product sales of ALROSA Group, total USD 3 302.3 m:

including:

  • ALROSA Co. Ltd., total — USD 2 618.2 m;
  • rough diamonds — USD 2 493.3 m;
  • polished diamonds — USD 124.9 m;

Revenues from sales of products (work and services) of ALROSA Co. Ltd. — RUB 92 373.9 m;

Earnings before tax — RUB 6 436.1 m;

ALROSA Co. Ltd. net profit — RUB 2 655.7 m;

Investment budget — RUB 20 117 m;

Prospecting and Exploration Budget — RUB 2 710 m;

Capital investment — fixed assets construction — RUB 11 195 m.

The Board discussed the Company’s borrowings policy for 2010. The proposal of the Executive Board on a ruble bond issue in Q2 2010 for the total amount of RUB 44 b was approved.

The Board endorsed the decision to terminate the activities of the ALROSA-Pomorye division and reorganize it into an integrated geological and geophysical team within the structure of the Mirny Exploration Expedition to be based in Arkhangelsk.

The sales policy for 2010 — 2012, and the development of ALROSA projects in Africa were also discussed.

Finally, the plan of activities of the Supervisory Board for 2010 was approved.

This page was last updated on 30 December 2009 at 14.49