OREANDA-NEWS. On March 27, 2007 The ALROSA Executive Board held its regular meeting in Mirny, Republic of Sakha (Yakutia), under the chairmanship of ALROSA President S.A. Vybornov.

The Board reviewed and approved the materials for discussion at the meeting of the Company’s executives and trade union activists to be held in Mirny on March 29th.

The Board reviewed industrial security at ALROSA production sites, based on the results of the 2007 performance, and discussed objectives for 2008. The efforts to ensure accident prevention, industrial and road safety were found satisfactory. ALROSA Chief Engineer Alexander Yefimov was instructed to begin before 1st of June, 2008 the practical implementation of "The ALROSA Regulation on Material Incentives and Collective Responsibility in the Field of Industrial Safety".

The Board also discussed "The Concept of Further Development of the Nakyn Diamond Field". On the basis of feasibility analysis, comparative assessment of several mining options and investment effectiveness it was resolved to approve in principle the draft of The Concept providing for the use of open pit mining method at the Nurbinskaya, Botuobinskaya and Maiskaya pipes. It will ensure maximum efficiency of the Nakyn diamond field development.
The relevant divisions and executives were instructed within a monthly period to specify and optimize basic technical and economic performance indicators pertaining to the development of the above deposits – with due account for capital expenditure and mining targets for 2009 and other years – and submit them for review and approval of the Company’s Technical and Economic Panel.

The Board also considered streamlining operations of ALROSA construction divisions. Having heard a report by Director of Capital Construction Division I.V. Sobolev on the implementation of ALROSA Supervisory Board instructions in respect of attaining higher efficiency of operations by the Company’s construction divisions, the Board granted its approval to the proposed Programme to Improve Efficiency of the Construction Divisions.

The three-year programme provides for the establishment, inter alia, of an investment planning division which will also supervise investment projects implementation, the main objectives of the programme being as follows:
- reduction of construction costs by the Company’s own construction divisions,
- more important role the client service unit, formation of project management elements,
- development of contract construction,
- development of up-to-date corporative legal framework regulating the implementation of investment projects.

Also the implementation of "The Comprehensive Programme Aimed at Improvement of the Environmental Situation in the Areas of ALROSA Operations for 2006 -2010" was discussed. The Board took note of the management information report and gave instructions to its engineering units, Yakutniproalmaz Scientific, Research and Design Division to ensure the implementation of environmental protection measures.

It was resolved to amend the Company Regulation on Employee Remuneration, under which from now on all the Company employees will be entitled to bonus payments, subject to the efficiency of economic performance and net profit indicators. Earlier bonuses had been paid only to the managerial personnel.

The Executive Board also discusses a number of other issues pertaining to the Company’s day-to-day operations.