On December 28, 2010 the Supervisory Board of ALROSA held its regular meeting in Moscow, chaired by Vice Chairman of the Russian Federal Government and Minister of Finance of the Russian Federation Alexey Kudrin.
The Board discussed and approved ALROSA’s consolidated budget for 2011.
In 2011 the ALROSA Group targets to produce a total of 34,438 thousand carats of rough diamonds.
The targets for the sales of diamonds have been approved as follows:
- USD 3,526.00 million, for the ALROSA Group;
- USD 2,470.00 million, for ALROSA Co. Ltd;
- USD 160 million, for sales of polished diamonds.
The cost of goods and services sold is projected at RUB 62,943.9 million.
The company’s consolidated investment budget is planned at RUB 13,471.9 million.
The consolidated exploration budget, including allocations for on-mine-site exploration, is fixed at RUB 3,651.6 million.
A net profit of RUB 10,542.3 million is expected.
The Company’s consolidated credit and loan portfolio, as of January 1, 2012, is projected to total RUB 82,964.00 million, as compared with RUB 98,560.6 million on January 1, 2011. Thus, the Company aims to fulfill one of its priority objectives for next year, bringing down its aggregate debt to below USD 3 billion and converting practically as much as 90% of its obligations into long-term loans.
The Supervisory Board considered the implementation of measures to convert ALROSA from a closed to an open joint stock company. The Board approved draft amendments to the Company’s Charter and endorsed a set of measures to complete the conversion of ALROSA into an OAO, i.e., an open joint stock company.
The Board reviewed the operations of the subsidiaries and controlled companies of ALROSA Co. Ltd. and resolved to withdraw from the capital of eleven companies.
The Board endorsed membership changes in the ALROSA Executive Committee. The Board resolved to relieve Sergey Oulin and Yuri Ionov, both former vice-presidents of ALROSA, and Alexander Efimov, former chief engineer of ALROSA, of their duties as members of the Executive Committee, following the termination of their employment contracts with the Company. Andrey Pismenny, ALROSA’s recently appointed chief engineer, was approved to take a seat on the Executive Committee.
The Supervisory Board approved its work schedule for 2011.