In a press release summarizing the results of the Annual General Meeting of Shareholders, President of Alrosa Sergey Ivanov said that the mining company is planning to adjust its development strategy, “although no fundamental changes are expected”. Additionally, Alrosa “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%. Needless to say 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”, Ivanov said.
In the same press release, Alrosa announced that it will also reduce its costs, including “structural and staff changes”. Ivanov commented: “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”.
