Supervisory Board of ALROSA approved consolidated budget for 2013

The Supervisory Board of ALROSA approved the company’s consolidated budget for 2013 at a meeting in Moscow on December 18. This was stated in the diamond miner’s press release issued on Tuesday and received by Rough&Polished.
ALROSA forecasts a stable supply-demand balance in the global diamond market for the first quarter of 2013 with a view to further moderate growth. In this regard, ALROSA suggests that sales of rough and polished diamonds in the group are expected to remain at the level of 2012 or about $ 4.5 billion, which is in line with the company’s fair market share at current price movements.
According to the plan, ALROSA Group’s diamond output is expected to reach 34.5 million carats in 2013. Next year, about 10 million carats will be yielded by the company’s underground mines.
ALROSA intends to invest RUB 17.8 billion in major construction projects in 2013, an increase of 4% over 2012. The miner sees its strategic objective in continuing construction and maintaining the production capacity of its underground mines allocating for these purposes more than half of its total capital investments earmarked for the next year. The ongoing construction of the Udachny Mine will require the biggest funding in 2013 - about RUB 6.3 billion.
Next year, ALROSA will spend twice as much money for technical retooling compared with 2012, beefing up this kind of financing to over RUB 7 billion.
The Supervisory Board also endorsed the revised long-term plan of ALROSA for 2012-2021, the miner’s marketing policy concept for 2013-2015 and the procurement regulations.
The Board has decided to terminate the powers of Yuri Doinikov, the member of ALROSA’s Executive Committee.
ALROSA is the world's largest producer of diamonds by carat. In 2011, the company produced 34.6 million carats, while ALROSA Group sold $ 4.454 billion worth of diamond goods.