On July 9^th, 2003Chaiman of the Russian federal government Mikhail Kasyanov visited Mirny as part of the program of his working visit to Sakha (Yakutia). The day before he had flown to Yakutskto attend the meeting of the Council on the Development of the Territories of the Far North under the Government of  the Russian Federation.

Prime Minister Kasyanov arrived in the capital of the DiamondProvinceat the head of a delegation of ministers and government officials supervising the diamond industry. Vyacheslav Shtyrov, President of Sakha  (Yakutia), and Vladimir Kalitin, President of ALROSA, accompanied the Premier on his trip. The Arkhangelsk Governor Anatoly Yefremov was also present.

Mr. Kasyanov was taken to the famous Mir kimberlite pipe where open pit mining has been stopped and a new underground mine is under construction now. He also visited the premises of the Mirny Diamond Sorting Centre where he was shown a collection of rough and polished diamonds and told how sorting and valuation of diamonds is done.

At the office of ALROSA Mr. Kasyanov chaired a meeting on prospects of the development of the Russian diamond industry with CEOs of Severalmaz and Uralalmaz also attending.

The main speaker ALROSA President Vladimir Kalitin briefed the meeting on his company’s main goals and prospects of development. He pointed out to a number of outstanding problems – licensing, severance tax reform, diamond trade certification as required by the Kimberly Process.

The discussion also focused on diamond development in Sakha (Yakutia) and the Arkhangelsk Region, prospects of diamond manufacture in Russia, economic and financial aspects of business in the gems and jewellery market. Some regional issues were raised as well, such as the construction of the Tommot-Yakutsk motorway and sales of rough to Yakutian polishers.

The Premier was keen to know the current figures of rough and polished production. The prospects of diamond mining and diamond manufacture in Russia’s other regions, social programs under implementation by ALROSA were also of interest for Mr. Kasyanov.

The meeting was constructive with a few likely solutions suggested.

The event was followed by Mr. Kasyanov’s news conference. Speaking on the national policy aimed at strengthening the ruble and its benefits for extractive export companies which account for a considerable share of budget receipts, the Premier said that ‘every government aims to strengthen its own currency, but sometimes a strong currency might result in economic problems. Now we can state that the reasonably strong ruble has not entailed any negative trends.’

‘Diamond reserves in Yakutia are enough to continue mining for next 40 years. ALROSA has acquired a rich scientific research and technological potential, as well as well-trained personnel, which will be in demand even when diamond deposits are depleted. Then it will be possible for the whole region to smoothly switch onto oil and gas production, and ALROSA might well become a base for new development,’ Mr.Kasyanov remarked.