ALROSA Supervisory Board Approves 2016 Budget
At its meeting held on December 22, ALROSA Supervisory Board reviewed and approved the budget of the Company and ALROSA Group for 2016.
The 2016 mining operations plan is drawn up in accordance with ALROSA's Long-term Development Program. Diamond production by ALROSA Group is expected at up to 39 million carats. The key objectives of the 2016 production program is to reach the design capacity of the Mir underground mine and put the second start-up complex of the Udachny underground mine into operation in the second half-year.
Rough diamond sales by ALROSA Group in 2016 are planned at the level of USD 3.5 billion taking into account a minimal demand growth.
The budget caters for the anti-crisis measures with the cumulative effect of RUB 12 billion due to optimization of operating, investing and financial activities.
The Supervisory Board also considered matters pertaining to the non-core assets disposal program including ALROSA gas assets, and approved a number of transactions. All agenda items were decided.
ALROSA is the world's largest producer of rough diamonds in carats. ALROSA is engaged in exploration, mining and sales of diamonds. The Company's operations are located in the Republic of Sakha (Yakutia) and the Arkhangelsk region of Russia. In 2014, the Company produced 36.2 mln carats of rough diamonds; 2014 revenue was RUB 207.2 bn.