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RAPAPORT... ALROSA's supervisory board approved, in principle, the company's production development plan through the year 2021. The key objectives are to ensure that ALROSA’s growth is primarily driven by its core-business of diamond-mining; retain leadership in the world market; anticipate mineral replenishment needs; raise the company’s market value and implement investment projects to fund new facilities. The long-term plan also stipulates growing production volume from 34 million carats at present to an average annual target of 38 million to 40 million carats. ALROSA anticipates that carat volume growth will follow as it develops underground mines and attains full capacity from OJSC Severalmaz. The share of rough diamonds from open-pit mines will be systematically reduced from 72.8 percent of the total in 2011, to 40 percent by 2021. However, ALROSA noted certain risks to this plan, which are contingent upon market forces, the quality of rough produced, geological features of the diamond deposits and some possible changes in conditions at the mines currently under construction. The planned incremental rough diamond reserves during this period will exceed 451 million carats. The total volume of rough diamond reserves is forecast to be 1.19 billion carats as of January 1, 2022. Additionally, ALROSA is considering buying diamond-mining assets, but primarily in the territory of the Russian Federation, according to the firm's statement. Within the framework of ALROSA's non-core asset business, it plans strategic investments with the Timir iron ore project and the gas production project (Urengoy Gas Company and Geotransgaz). The supervisory board also terminated Dmitry Mostovov, the former director of the Mirny Mining and Processing Division, from ALROSA's executive committee and appointed Ilya Ryashchin, ALROSA’s first vice president to the post. The supervisory board approved ALROSA's participation and partnerships with EnergoAuditEkspertiza (Moscow); RF Technological Platform Hard Mineral Resources (Moscow) and R&D Directors Club (Moscow).
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