ALROSA President says no fundamental changes expected

Summarizing the results of the Annual General Meeting of Shareholders, the President of ALROSA Sergey Ivanov announced that the company is planning to adjust the development strategy, although no fundamental changes are expected. The company will still be focused on strengthening its leadership in diamond mining and building market strength.

“We see a lot of potential in our infrastructure projects, including those in Angola. We have already signed documents on the establishment of a joint venture company for the development of Luele pipe – the largest discovered over the past 60 years. ALROSA also plans to increase its share in Catoca Ltd Mining Co up to 41 percent.”

He also noted that, “the Company will continue its work on the implementation of our investment projects in Yakutia, including those related to the establishment of a diamond mining facility at Verkhne-Munskoe deposit”.

In the meantime, ALROSA will gradually reduce its costs and improve efficiency, making structural and staff changes in the company if the situation so requires. “The Company needs to be reformed inside to have greater manageability and transparency. I can give an upbeat assessment of the operation of our production facilities in Yakutia. We are also facing changes in the administrative staff with a view to improve the company’s internal efficiency. We will modify business processes, improve quality of managerial decisions and performance discipline, and, of course, optimize costs. Quality of management in ALROSA must comply with the best world practices,” said Sergey Ivanov.