2012 Results and Goals

The ALROSA Extended Leadership Team at its meeting on February 28, 2012 recommended that the Executive Committee approve the following measures to be taken by the company to achieve 2012 deliverables.

ALROSA 2012 Deliverables and Levels of Realisation 

ALROSA 2012 Deliverables

Completion stage 


Reasons for Underperformance

Continue implementation of the Programme for Exploration, Prospecting and Replacement of Mineral Resources to ensure an increase in diamond reserves by 35.0 million carats.  


In 2012, 35.8 million carats were added to the diamond reserves. 


Mining 34.4 million carats of diamonds across the ALROSA Group. 


Total volume of diamonds mined across the ALROSA Group in 2012 amounted to 34.4 million carats.  


Implement strategic capital projects – construction of underground mines: bring the Aikhal Mine to rated capacity of 500,000 tonnes of ore, increase production at the Mir Mine to 750,000 tonnes, and begin preparatory mining works at the Udachny Mine. 

Partially completed

In 2012, the Aikhal Mine reached its rated capacity of 500,000 tonnes

Ore mining at the Mir Mine increased from 340,000 to 497,000 tonnes.

The site of underground mining was fully staffed and necessary mining equipment was deployed.  A shaft lift and maintenance site was organized. Phase One was put into operation at the first start-up complex of the Udachny Mine. 

Underperformance at the Mir Mine was due to a hydro-geological situation and the need for stabilization thereof.  

Ensure implementation of technical modernization and renewal of fixed assets programme. 

Partially completed

Investment programme of technical modernization and renewal of fixed assets – 96.8% completion against projected deliverables. 

Underperformance was caused by late delivery of equipment that needs assembly and installation, cheapening of equipment, and extension of commissioning dates of some facilities. 

Achieve planned economic effect from implementation of innovative technological modernization projects. 


Economic effect achieved in 2012 from measures taken as part of the innovative development programme are estimated at RUB 743 million, total investments in R&D being RUB 542 million.

Economic effect of investments in R&D increased to RUB 1.37 on one rouble invested. 


Design a system of incentives for line managers to reduce the industrial injury occurrence rate. 


The rules governing target and comprehensive reviews of line (operating) personnel employed at underground mining facilities were prepared and approved in the current year. Based on review results, a special scheme to assess line managers’ health and safety activities. The assessment will affect monthly bonuses, depending on the seriousness of discovered violations.  


Diagnostics of an effective employee payment scheme. 


Specialists from R&D Labour and Social Insurance, and the Ministry of Labour were invited to participate in a diagnostic review of ALROSA’s employee payment scheme. Personal business qualities coefficients for the 2007-2011 period were rated as part of this exercise. Recommendations were made on the basis of the performed analysis and review. 


Approve and begin implementation of the ALROSA Framework Development Strategy and Corporate Social Policy. 


The Framework Strategy was designed and adopted by the ALROSA Executive Committee on February 27, 2012 as the basis for ALROSA’s long-term social policy. 


The ALROSA Extended Leadership Team at its meeting on March 23, 2013 in Mirny outlined the company’s goals and objectives for 2013 as follows. 

ALROSA Goals and Objectives for 2013

2013 Goals and Objectives

Draft ALROSA’s development strategy. 

Ensure the mining of 34.5 million tonnes of diamonds across the ALROSA Group. 

Continue implementation of the Programme for Exploration, Prospecting and Replacement of Mineral Resources to ensure an increase in diamond reserves by 22.0 million carats.  

Implement capital projects – construction of strategic industrial facilities.  

Ensure implementation of technical modernization and renewal of fixed assets programme. 

Improve the company’s innovation capacity. Achieve the planned economic effect from implementation of innovative production modernization projects.  

Tighten control over the observance of industrial health and safety rules, introduce a bonus scheme for the observance of safe labour conditions in order to reduce the industrial injury occurrence rate. 

Design and commence implementation of measures aimed at improving labour productivity. 

Map out a concept aimed at improving payment and remuneration schemes. 

Ensure the implementation of the ALROSA Social Policy. 

Commence the design and construction of a kindergarten in Mirny, Republic of Sakha (Yakutia).

Further optimize the corporate structure and organization. 

Support the decision of the shareholders to preserve state ownership of the controlling block of shares in the company. 

Rating and Awards

Credit Ratings. In July - October 2012, international rating agencies Standard & Poor’s and Fitch confirmed ALROSA’s rating at ВВ-, with a stable outlook, while the Moody’s agency confirmed the ALROSA Group’s rating at Ва3, but changing the outlook from stable to positive.

Based on the results of an evaluation by the Expert-RA agency, ALROSA has improved its position in the Expert-400 rating and moved one step up to 47th place among the 400 largest Russian companies.

Senior Management Ratings and Awards. In the TOP-1000 best Russian managers rating for 2011, which is annually prepared by the Association of Russian Managers and published in the Kommersant business daily, ALROSA President Fyodor Andreev was ranked among the top three best top managers in the metals industry.

In 2012, Ilya Yuzhanov, Chairman of the ALROSA Supervisory Board, and Sergey Dubinin, Member of the ALROSA Supervisory Board and VTB Board Chairman, received awards in the category Board Chairman: Contribution to Corporate Governance within the framework of the 7th National Director of the Year Award. The award is given by the Independent Directors Association (IDA) and the Russian Union of Industrialists and Entrepreneurs (RUIE) in partnership with PriceWaterhouseCoopers. 

The chief executives of two ALROSA subsidiaries won the Top 1000 CEOs of Regional Companies award: Matvei Yevseev, Almazy Anabara Co., and Aleksey Ivanishchev, OJSC ALROSA-Gaz.

Innovation Awards. ALROSA and FSAED HPE North-Eastern Federal University received a Certificate, First Degree, and a Gold Medal for their design of an integrated environmentally safe innovative technology for mining and processing diamantiferous ores in the extreme North at the St Petersburg Technical Fair. The award was given in the category Efficient Deployment of Innovations in Industrial Processes & Modernization of Production.

ALROSA also received a Certificate for Innovation and Development 2012 at the International Innovation and Development Forum in Moscow.

Quality Awards. At the General Assembly of the European Organization for Quality (EOQ) held in Chisinau, Moldova, ALROSA represented by its R&D arm, the Yakutniproalmaz Institute, received a certificate in the First Prizewinner Category of the 8th International Quality Contest of Central and Eastern European Countries. The company was recognized for a high level of business excellence and the appropriate awards were presented at a ceremony attended by the leaders of national organizations for quality of European countries. 

Ratings of Subsidiaries. The Expert RA rating agency assigned insurance company SK ALROSA a reliability rating of A+ ‘very high reliability’, with a stable outlook. The SK ALROSA high rating is a result of the company’s strong current liquidity position.

In the reporting year, the Expert RA agency raised the rating of the private pension fund Almaznaya Osen (Diamond Autumn) by ten points on average according to several performance indicators (average client account size, volume of pension savings, number of participants, etc.).