Report: Alrosa to Diversify
September 19, 06
In an attempt to protect itself from fluctuations in the diamond industry, Russian diamond miner Alrosa has said that it plans to diversify into gold, oil, gas, and coal mining. The news comes on the heels of President Alexander Nichiporuk's declaration that the miner is expecting another good year, with Russian mined rough diamond sales of about $2.8 billion.
“Although market conditions have worsened, we expect our net profit to be no worse than last year's," Nichiporuk told reporters. Last year Alrosa made a net profit of 15 billion rubles ($559.7 million). The statement was somewhat surprising, as prices of rough diamonds have soared in the past year.
On the subject of Alrosa's diversification plans, Nichiporuk said, “The diamond market has many risks threatening those involved just in this one kind of activity. Our task is to minimize these risks and to achieve maximum profits.”
Alrosa plans to develop oil and gas fields in Yakutia and build an oil refinery in the CIS republic.
Nichiporuk also said that the company is considering a number of gold projects in