ALROSA-Nyurba
ALROSA-Nyurba was incorporated in 1997 as a subsidiary of ALROSA for the purpose of industrial exploitation of the new diamond deposits of the Nakyn kimberlite field – the Botuobin and Nyurbinskaya pipes, located in the Nyurbinsky region of the Sakha Republic (Yakutia).

The authorized capital of ÎÀÎ ALROSA-Nyurba is currently 20 million rubles.
ALROSA owns 87.5% of ÎÀÎ ALROSA-Nyurba shares, and the administration of the Nyurbin settlement owns 10%.

The core business of ÎÀÎ ALROSA-Nyurba is extraction and sales of natural diamonds in Russia and abroad.

Diamond mining
ÎÀÎ ALROSA-Nyurba is the holder of the license to OAO ALROSA-Nyurba is the holder of the license to use subsurface resources of the Botuobin pipe for the purpose of geological research and diamond extraction at the world class diamond deposits of the Botuobin, Nyurbinskaya and allied eponymous deposits.
ALROSA-Nyurba’s diamond-mining operations include the full cycle of mining and beneficiation associated with production of rough diamonds.
The Nakyn beneficiation complex is equipped with highly productive mining equipment for open development and highly efficient, environmentally safe beneficiation equipment, which facilitate significantly high growth rates of extraction of natural diamonds.
ALROSA-Nyurba’s annual production volume is 23% of the diamond mining volme in the Russian Federation. In terms of the size of its earnings and its profitability level, ÎÀÎ ALROSA-Nyurba is on par with the best units of AK ALROSA (ZAO) and is one of the top five companies in the Sakha Republic (Yakutia).

Geological exploration
ALROSA-Nyurba is actively involved in advanced geological research and exploration and spends 400 million rubles annually for these purposes. The geological exploration operations include various stages of the geological research of subsurface resources and regional operations before operational exploration, including monitoring of ground waters and the geological environment, searches for diamond deposits, barrenness assessments of areas for the purpose of the subsequent construction of the infrastructure of the operational mining and beneficiation mill, search operations not associated with mining operations to find structures for the underground disposal of drainage brines from mining of deposits under development, exploration of primary and placer diamond deposits for the purpose of  replenishing the raw material base and operational exploration within the limits of the mining claim.
Geological exploration and extraction work is performed on a rotational basis with the involvement of ALROSA units according to owner-contractor agreements, including the Nyurbinsky mining and beneficiation mill and the Botuobinskaya and Mir geological exploration expeditions.

Diamond sales

The company’s principal product is sold on domestic and foreign markets. In 2006, ALROSA-Nyurba was issued a five-year quota on domestic-market diamond sales. Since the start of extraction, diamond sales have grown 7.9 times and reached $670 million in 2007.
ALROSA-Nyurba’s product is profitably sold through ALROSA sales outlets in Belgium, Hong Kong, Israel and the United Arab Emirates.

In 2006, the company was one of the top companies in Russia according to the results of a survey of industrial companies conducted by the Russian Union of Industrialists and Entrepreneurs.

OAO Severalmaz

The Joint Stock Company Severalmaz was founded in 1992 for development of the largest European diamond deposit named after M.V. Lomonosov situated in Arkhangelsk region. 
ÎÀÎ Severalmaz principal types of activity are the extraction, processing and sale of the rough diamonds.
 
ÎÀÎ Severalmaz has been issued the license to develop the diamond deposit named after M.V. Lomonosov. This deposit was discovered in 1980. The cost of the deposit exploitable reserves up to the depth of 460 meters exceeds $12 bln. Over 60% of the diamonds fall into the jewelry range. The diamond deposit named after M.V. Lomonosov consists of six kimberlite pipes: the Arkhangelsk one, the one named after Karpinsky-1, the one named after Karpinsky-2, the Pionerskaya one, the Pomorskaya one and the one named after Lomonosov.
The principal milestones of the company history: 1992 – establishment of the Closed Type Joint Stock Company Severalmaz; 1994 - Severalmaz is issued the license to exploit the subsurface resources of the deposit named after Lomonosov; 1997 - ALROSA becomes a member of the Severalmaz shareholders; 2002 - ALROSA becomes the major shareholder of Severalmaz; 2003 - start of the mining works at the diamond deposit named after M.V. Lomonosov, the ÎÀÎ Severalmaz shares are transferred in trust by ALROSA to ÎÀÎ Investment Company Solex; 2007 - Severalmaz is issued the general license for export of diamonds; 2008 – the millionth carat of diamonds is produced at the beneficiating plant No. 1 of the Lomonosovsky mining and beneficiation complex.

The prospects of ÎÀÎ Severalmaz development are connected with development of the diamond deposit named after M.V. Lomonosov and construction of the mining complex with the annual output of 5.6 mln tons of ore, including the complete technological cycle from the extraction of ore to the sorting out of diamonds. The mineral raw materials are mainly comprised of crystals of rhombic-dodecahedron and tetrahexahedron habitus accounting for 80%; at the same time there is a tendency of increase of such morphologic type stones level from smaller to larger classes. 75% of diamonds are transparent and about 60% are colorless.

The structure of the Company authorized capital (as of the beginning of 2009): Joint Stock Company ALROSA (CJSC) – 95.03%; including held in trust by CJSC Investment Company SOLEX – 92.36%; minority shareholders – 0,60%; nominal shareholders – 4.37%.
The geological survey works for ÎÀÎ Severalmaz are performed by the subsidiary in the city of Archangelsk ALROSA Pomorie. In 2008 there were performed the geological survey works for operational exploration of the Archangelskaya pipe, for search and exploration of the construction materials deposits, for search of the diamond deposits with the purpose of expanding of the mineral resources base at the Kepinskaya and Verkhnekepinskaya areas adjacent to the deposit.
To sell ÎÀÎ Severalmaz products, the Company branch – the Sales Company Severalmaz – has been operating in Moscow since 2007, which sells the rough diamonds produced by the Company on its behalf on tender basis. 

The trade in diamonds may be held in the form of a tender with the closed form of the price offer submission (both with announcement of the minimal price and without it), in the form of direct sales and in the form of an auction for diamonds larger than 10.8 carats. During the tender the product is offered to both Russian and foreign buyers.
ÎÀÎ Severalmaz holds measures aimed at lowering of the impact on the environment while exploiting the diamond deposit named after M.V. Lomonosov. The control of the environmental condition is maintained in accordance with the production environmental monitoring project.
Within the framework of the production monitoring in 2008 there were performed the hydrological, hydrochemical, ichthyological and hydrobiological surveys of the water streams flowing in the deposit region.
The condition of the near-tundra forests, soils and vegetation, populations of rare and specially-protected kinds of animals, atmospheric air and subsurface waters is regularly inspected.

OAO Almazy Anabara

The Open Joint Stock Company Almazy Anabara (Diamonds of the Anabar) was founded in 1998 and at present is one of the largest mining industry enterprises of the Republic Sakha (Yakutia). It conducts its activity in the Anabarsky, Olekminsky, Lensky, Oleneksky, Mirninsky, Neriungrinsky regions and in the city of Yakutsk.  
At present the annual turnover of ÎÀÎ Almazy Anabara exceeds 5 bln roubles. The number of employees is over 3,500 people.
Nowadays 100% of ÎÀÎ Almazy Anabara shares belong to the ALROSA company. ÎÀÎ Almazy Anabara has three branches: the Yakutsky city branch, the Olekminsky branch and the Lensky branch.

Extraction of diamonds
The extraction of diamonds is the principal sphere of activity of ÎÀÎ Almazy Anabara. The Company performs extraction of rough diamonds at the alluvial diamonds’ deposits Mayat and Morgogor. 

Exploration of rough diamonds
Starting from 1999, the volumes of the geological survey and extraction works on the plots increase each year. An annual program of the geological survey works includes the performance of a whole range of the searching, estimation and exploration works at the most promising objects of the subsurface resources exploitation. The works are performed on account of the enterprise own funds. The searching and estimation works are carried out with the use of a wide range of the modern geophysic, geochemical, aerospace methods of searching for new potentially diamondiferous objects. 

Timber processing complex AlMas  
In 2004, following the order of the president of the Republic Sakha (Yakutia) V.A. Shtyrov, the General Director of ÎÀÎ Almazy Anabara M. N. Evseev undertook reorganization of the republic timber processing complex.
In April, 2004 the Sakhales enterprise with all its structural subdivisions, production plots and liabilities was bought from the state into private ownership. Only for the year 2005 ÎÀÎ Almazy Anabara invested over 300 mln roubles in development of the timber sphere. And it paid off. The renewed timber processing complex was called AlMas. Nowadays it owns timber industry enterprises in the Lensky and Olekminsky regions where the timber logging is rapidly growing. 
The Company owns woodworking plants in Yakutsk and Lensk.

Agricultural production
In August, 2006 LLC Agrofirma Olekminskaya, being 100% subsidiary of ÎÀÎ Almazy Anabara, was founded on the base of the former State Unitary Enterprise Agrofirma Olekminskaya property complex. Within the framework of the ‘Accelerated development of cattle breeding’ project, it is planned to build in 2007-2011 the cattle breeding complex in the village of Yunkiur of the Olekminsky region for 800 dairy cattle. 
The principal types of activity of LLC Agrofirma Olekminskaya are: production of dairy-and-meat products, crop growing and forage production.

The Catoca ore mining company
 
The Catoca Ltd. joint-venture ore mining company was founded in 1992 in Angola by the Yakutalmaz amalgamation (Russia), Angola’s national diamond extraction company Endiama and the Brazilian company  Odebrecht Mining Service, Inc. for the extraction and sale of diamonds from the Catoca kimberlite pipe.

ALROSA and the state company Endiama each currently own 32.8% stakes in Catoca Ltd. The Brazilian consortium Odebrecht owns 16.4% of shares in the project, and the remaining 18% belong to the Daumonty financial group.

The Catoca pipe that the joint venture exploits is one of the largest kimberlite pipes in the world. The pipe’s area of discharge to the surface is 657,000 square meters. As the result of a series of geological surveys to a depth of 600 meters, the Catoca pipe’s capacity is estimated at 271 million tonnes of ore, of which 189 million carats of diamonds with a value of around $11 billion may be extracted in the next 40 years.

ALROSA started construction of the company’s facilities in 1995. The first diamonds were extracted in September 1997. The mining and beneficiation system is based on Russian technology.

The Catoca ore mining company is developing rapidly. Its ore processing volume increased from 1.6 million tonnes in 1998 to 4.3 million tonnes in 2004. Diamond extraction accordingly rose from 1.2 million carats to 3.6 million carats. Catoca’s second stage, with processing capacity of four million tonnes per year, was built with internal financing. Catoca’s current aggregate is 7.5 million tonnes of ore processing per year.

The company’s development prospects are very promising. Extraction is projected at around eight to nine million tonnes per year, with annual profits of not less than $400-450 million.

Concurrently with the development of raw materials reserves from the deep horizons of the opencast mine, Catoca and ALROSA are conducting geological exploration on Catoca’s concessionary area in order to find new kimberlite pipes.

Catoca currently employs 170 ALROSA professionals in Angola. Despite the detrimental influence of the global economic crisis, Catoca has been able to avoid personnel cutbacks.

Luo-Camatchia-Camagico

In 2003, ALROSA joined the Portuguese firm Escom Mining, Inc. in implementation of the Luo-Camatchia-Camagico ore mining company project, located in Angola, between the towns of Lucapa and Saurimo.

The company Escom-Alrosa Ltd., which was established for financing the project, owns 45% of the authorized capital of the Luo-Camatchia-Camagico ore mining company. The remaining 55% belong to the local companies Endiama, Hipergesta and Angodiam.

The Camatchia-Camagico kimberlite pipe is one of the largest in the world and contains top-quality diamonds that are renowned in the world and are the most expensive in Angola. In accordance with a feasibility study, it was initially intended to build the second stage with processing volume of three million tonnes per year, with intended total capacity of four million tonnes per year.

In May 2005, the first stage of Luo-Camatchia-Camagico was commissioned and diamond extraction started. The capacity of the beneficiation mill was one million tonnes of rock per year. At this stage, 800 personnel were employed on the project. Despite the bright prospects and rather ambitious plans of the Portuguese partners to achieve an extraction rate of 180,000 carats per month by July 2010, as well as bringing the project to capacities of six to seven million tonnes of rock per year, which would have made the project one of the 10 largest in the world, the economic crisis negatively impacted the project’s profitability. ALROSA’s Portuguese partner Escom is currently researching ways to increase the project’s profitability; in particular, reduction in capacity of the ore processing facility under construction.