Meeting of ALROSA Executive Committee Held
OREANDA-NEWS. March 25, 2013. Meeting of ALROSA Executive Committee was held in Mirny (Republic of Sakha (Yakutia).
Members of the Executive Committee discussed the Company’s geological complex performance in 2012. ALROSA’s aggregate reserves increment in 2012 amounted to 35.8 million carats, firstly due to exploration of Ebelyakh and Gusiny placers. The Company started exploration of Dalnyaya pipe and continued operation of Verkhne-Munskoe, Mayskoe and Zarnitsa deposits. Diamond prospecting and valuation of the potential of explored areas were carried out on 25 facilities.
The Executive Committee also considered reforming of the ALROSA’s cutting and polishing complex, including its production facilities in Moscow (Brillianty ALROSA), and those in Barnaul and Oryol.
The key task of the ALROSA’s cutting and polishing complex is to obtain the information on the current polished diamond market situation and the way it affects the rough diamond market development.
A gradual transfer of polishing facilities for small and medium-size rough diamonds from Moscow to Oryol and Barnaul is suggested to optimize the cutting and polishing complex. Technical upgrade and advanced training for cutting staff programs will be worked out for Oryol-ALROSA and Barnaul Kristall Factory. Another suggestion is to consider the possibility of engaging a strategic investor in the operation of Barnaul Factory.
Brillianty ALROSA Branch will concentrate upon manufacturing of high-quality and fancy colored polished diamonds.
The Executive Committee considered satisfactory the results of procurement in 2012. Last year the Company purchased goods, works and services for the total amount of over RUB 43 billion. More than half of the purchases were made through auctions held on open trading platforms, including electronic platforms. Almost RUB 3.5 billion were saved due to reduced prices as against initial commercial offers.
The reports on the implementation of the Innovation Development and Technological Upgrade program for 2012, the Power Saving and Energy Efficiency programs for 2009-2012, and a new draft of ALROSA’s Social Policy were approved at the meeting. The meeting considered other matters related to the Company’s current and future activities.