Alrosa’s board talks about the future

Alrosa’s supervisory board held a meeting yesterday in Moscow.  The board sat down to consider and approve Alrosa’s development plan up to 2021.

Highlights include:

• The growth of production volume from 34 million carats to an average of 38-40 million by 2021.
• Share of rough diamonds from open-pit mines will be systematically reduced from 72.8% to 40% in 10 years.  Additionally, the volume of rough diamonds from underground mines will grow from 27.2% to 60%
• Alrosa intends to implement its ‘non-core assets strategy’ which includes a move to divest from the Timir iron ore project and the gas production projects of Urengoy Gas Company and Goetransgaz.
• Total volume of rough diamond reserves forecasted for 2022 is to exceed 1,190 million carats.
• The Supervisory Board approved Alrosa’s intentions to purchase new diamond-mining assets within the Russian Federation.
• Dmitry Mostovov’s role as Executive Committee member was terminated; Ilya Ryashchin, Alrosa’s Vice President, was elected as an Executive Committee Member.

This meeting comes in wake of Russia’s on-and-off-again plans to sell its 91% stake in Alrosa in attempt to triple its revenue from the sale of state owned enterprises as it moves forward with its drawn out privatization programme.

Read more on Russia’s decision to sell its stake in Alrosa >>