ALROSA to invest 4 billion rubles to geologic exploration in 2012

This year AK ALROSA will allocate a total of 4.1 billion rubles for financing of geologic prospecting and exploration works, according to a statement by Head of press office of President of Republic Yakutia Afanasiy Yegorov to Interfax, cited by Finmarket.ru.
Yegorov noted that previously in 2011 ALROSA approved a concept of geologic prospecting and exploration works and will proceed with diamond prospecting. “In case of diamond discoveries ALROSA will be able to become the operator of these areas without auctions for concessions,” – Yegorov said.
He added, that following geologic prospecting works ALROSA anticipates an accretion to its registered resource base.
In 2011 the total financing of geological prospecting works in Yakutia amounted to 18 billion rubles, which exceeded the planned figure by 17%. It is reported that a total of 1.6 billion rubles were allocated for exploration from the federal budget, 121 million rubles were provided by the Republic Yakutia and 16.3 billion rubles were invested by the subsoil users from their own funds.
The main part of funds was allocated in 2011 for exploration aimed at expansion of resource base for AK ALROSA, OJSC Almazy Anabara, OJSC Nizhne-Lenskoye and OJSC ALROSA-Nyurba.
The aggregate volume of financing of geologic prospecting and exploration in Yakutia is planned at 13.469 billion rubles for 2012, including 1.45 billion rubles coming from the federal budget, 159 million rubles from the budget of Republic Yakutia and the remaining 11.86 billion rubles – at the account of subsoil users’ funds.