ALROSA views three options for its development strategy

ALROSA is delineating a long-term development strategy, according to Ilya Yuzhanov, Chairman of the company’s Supervisory Board, who disclosed this in his interview to the Vesti 24 TV Channel, later cited by www.spb.rbc.ru.
"The previous managers received and bought a number of licenses for non-core assets from the point of view of the diamond business – for gas and iron ore. Now the company is facing a big question: to implement these huge investment projects you will need funds, which are scarce. Besides, you will need appropriate staff," he explained.
Therefore, according to Ilya Yuzhanov, the company is considering three potential scenarios while choosing its strategy. The first scenario, tentatively called the “Bengal Fire,” is focused on the diamond business only. "The company will develop the existing diamond deposits and perhaps will buy some core assets abroad," he said.
The second option is diversified and in particular includes the development of non-core assets (gas, iron ore, etc.). "The third option reviewed under the code name of “Rentier” is conservative. It provides for the development of diamond assets and gradual disposal of non-core assets," Ilya Yuzhanov said adding that personally he leans more toward the latter scenario. "We should not engage in non-core activities," Ilya Yuzhanov summed up.