On September 14, 2012, the Executive Committee of the Company met in Udachny chaired by ALROSA's President Fyodor Andreev. The Executive Committee considered the results of ALROSA's budget implementation and the performance results of ALROSA Group for the first half-year 2012.
According to the interim management statements, in January-June 2012 ALROSA Group sold some USD 2.4 billion worth of rough diamonds. The Company has noted a slumping demand for rough diamonds that started in March; it was conditioned by a number of macroeconomic and intrasectoral factors that influenced the current state of the rough diamonds market. On a long-term horizon the fundamental factors, such as the growing demand for diamond jewelry and the reducing global diamond mining, will affect the market development.
With due consideration of the requisite sales dip in March-August aimed at preserving the price stability on the market, the Company forecasts the sales by ALROSA Group to reach USD 4.5 billion summarizing the results of 2012.
The rough diamond output by ALROSA Group in the first six months of the year was about 16.4 million carats. The rough diamond production measured by volume falls within the target range, following the results of 2012, the expected rough diamond output by ALROSA Group is comparable with that in 2011, whereas a slight drop in the diamond production is a planned factor conditioned by technological features of implementation of the Company's investment program for the underground mines construction.
The Executive Committee also considered the development of the Lomonosov Mining and Processing Enterprise within OJSC 'Severalmaz', in particular the feasibility study of its development providing for the increase in its capacity from one to four million tons of ore per year.
The Executive Committee discussed and approved in principle the development plan of OJSC 'Almazy Anabara' up to 2021. Pursuant to the plan, the diamond mining by OJSC 'Almazy Anabara' can reach some 28 million carats of gem quality diamonds by 2021. The production program includes both exploitation of existing and development of the new diamond deposits, 'Ruchey Ebelyakh' and 'Ruchey Gusiny'.
Other matters related to the Company's operations were discussed at the meeting.