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RAPAPORT... ALROSA's supervisory board approved the company's budget for 2014, expecting to maintain the same level of spending and production for the year ahead. ALROSA's preliminary production estimates for 2013 suggest it will have mined more than 36 million carats compared with 34.4 million carats in 2012. ALROSA's board approved an investment of $1.2 billion (RUB 39 billion) during 2014, the same amount it had this year, on capital projects, with a 30 percent year-on-year spending increase for underground mines, the bulk of which will be for construction of the Udachny underground mine. The board stated that it foresees a stable balance between rough diamond supply and demand, with a potential for a 2 percent to 3 percent increase in prices during 2014. During the year ahead, ALROSA expects to complete construction on its open-pit mine on the Botuobinskaya pipe so it may begin mining in 2015 through Nyurba mining and processing division. It will also phase in the Udachny underground mine complex as well as the operations on the Ebelyakh and Ruchey Gusiny placers, through Almazy Anabara. In 2014, ALROSA expects to prepare for the 2015 to 2017 contract period by securing long-term rough agreements to supply major manufacturers of polished diamonds and jewelry, according to the supervisory board's meeting minutes.
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