On the meeting held on December 18, 2012, in Moscow ALROSA Supervisory Board approved the Company’s consolidated budget for 2013.
The Company forecasts stable demand and supply balance on the global diamond market in the first quarter 2013 with subsequent moderate growth. In this connection, ALROSA expects rough and polished diamond sales by the Group to remain at the level of 2012 — some USD 4.5 billion, which corresponds to the Company’s fair market share in the current pricing environment.
According to the plan, the rough diamond output by ALROSA Group in 2013 is to reach 34.5 million carats, 10 million carats will be produced from underground mines.
The planned investments in construction at the main production areas in 2013 are RUB 17.8 billion that is 4% above the index of 2012. ALROSA’s strategic objective is construction and support of underground mines, more than half of total capital investments will be allocated for these purposes in 2013. Construction of Udachny underground mine will require the largest investments (some RUB 6.3 billion) in 2013.
Investments in technical re-equipment in 2013 will grow almost twice as against 2012 and will exceed RUB 7 billion.
ALROSA Supervisory Board also approved the updated long-term development plan of OJSC ALROSA for 2012–2021, the concept of ALROSA’s sales policy for 2013–2015, and the Regulations on purchases.
The Supervisory Board made a decision to terminate the powers of Mr. Yury Doynikov, ALROSA’s Executive Committee member.