OREANDA-NEWS. December 27, 2010. The ALROSA Executive Committee held its regular meeting in Mirny, Yakutia, chaired by its President Fyodor Andreev.

The Executive Committee voted to approve the corporate program for innovative development for 2011–2018 drawn up on the basis of recommendations of the Russian Federation Governmental Commission for High Technologies and Innovations dated August 3, 2010.

The purpose of the program is to improve the Company’s economic efficiency through introducing innovative production and energy-saving technologies, and up-to-date methods ensuring environmental safety of production. The document contains projections of investments to be made and economic effect to be attained from innovative technologies to be introduced in mining, ore processing, development of low-grade deposits, diamond sorting, cutting and polishing, etc.

In the projection period a total of RUB 532.8 million would be invested in scientific research projects, and RUB 4,551.4 million would be allocated for capital expenditures. The economic effect is projected at RUB 12,897.7 million.

The Program, in particular, provides for a technological audit to be performed in H12011, the creation of a center for innovations within the structure of the Yakutniproalmaz Institute, and streamlining of the system of planning for R&D.

The Executive Committee considered the feasibility study of the Aikhal underground mine construction project. The investment plan of the project was adjusted to accommodate measures for the reduction of diamond breakage during ore treatment, and, in particular, in the process of diamond extraction at Plant No.8 of the Aikhal Mining & Processing Division.

In general, over the projection period of 2010 — 2030 the proceeds (estimated in basic prices) from the sales of diamonds produced by the Aikhal underground mine would amount to over RUB 72 billion. The original capital expenditure program, to be implemented from January 1, 2010, would amount to RUB 13 billion, of which up to RUB 3.5 billion would be investments required for the mine to reach design capacity.

The Company’s Engineering Service, the Aikhal Mining & Processing Division, the Capital Construction Division were instructed to carry on efforts to reduce the cost of construction and working costs in the Aikhal underground mine construction phase.

The Executive Committee approved "The Regulations on Procurement of Goods and Services by ALROSA Co. Ltd". It was resolved that the Regulations would be applicable to procurement procedures to be launched after January 11, 2011.

The Executive Committee also considered a few other matters, including the approval of the list of ALROSA nominees for election to boards of directors and auditing commissions of subsidiary companies, and the Executive Committee work schedule for 2011.