ALROSA’s President Vladimir Kalitin visited Angola on November 11-13 for talks with the Angolan government and business community on prospects of further co-operation with ALROSA.

On 11 November the foundation stone was laid for the new hydroelectric power plant to be built on the Chicapa River in the Lunda Sul Province of Angola. Construction of the new power plant will be carried out by ALROSA, a shareholder in Hydrochicapa, a joint venture with Angola.

The project is expected to promote the social and economic development of Lunda Sul and the expansion of ALROSA’s diamond projects in Africa.

The guests of honour were Minister of Petroleum Engineer Desiderio Costa, Governor of Lunda Sul Marcelo Migi Etengo, Russian Ambassador to Angola Andrey Kemarsky, ALROSA President Vladimir Kalitin.

After the ceremony the guests were taken on a tour of the Catoca mine, first industrial diamond mining operation in Angola.

On the same day ALROSA’s President V. Kalitin chaired a meeting of top administrators of Catoca Ltd., Hydrochicapa and ALROSA-Vneshstroy, contractor of the hydro construction project, in order to outline priorities of organizational, logistical, and transport support of the construction works.

The meeting also focused on the Catoca Ltd. performance in 2003 and progress in the construction of the 2d stage of the mine, which will enable Catoca Ltd. to increase its ore extraction volumes and net profits and yield higher dividends to its shareholders.

On November 12 Mr. Kalitin was received by the Angolan President Jos? Eduardo dos Santos. During the meeting held in a friendly and business-like atmosphere the sides discussed the implementation of join projects and expansion of bilateral co-operation. Mr. dos Santos praised ALROSA for its efforts aimed at establishing new enterprises in Angola employing advanced state-of-the-art technologies. He also stressed that this co-operation was mutually beneficial.

On November 12 a meeting of the shareholders in Hydrochicapa was held in Luanda to consider the company’s first priorities for the short term.

Mr. Kalitin also met with the Angolan Minister of Energy and Water Mr. Jos? M. Botehlo de Vasconcelos to discuss the construction of the hydroelectric power plant on the Chicapa River and ALROSA’s possible involvement in energy development in Angola.

Besides, on the same day Mr. Kalitin had a meeting with Vice Ministers of Geology and Mines Mssrs. Mankenda Ambroise and Samuel Tito Armando, and Chairman of the Administrative Board of the Angolan state-controlled diamond producer Endiama Mr. Manuel Arnaldo de Sousa Calado.

Angola’s top-ranking government officials were briefed on the preparatory work under way to build the power plant on the Chicapa River, on the progress with the second stage of the Catoca mine and plans to develop the Camatchia and Camagico diamond deposits.

Mr. Kalitin told the Angolan officials about designing mining and other industrial facilities to be built in Angola, geological exploration in that country and new vistas for co-operation with his company. Among new prospects there is ALROSA’s involvement in setting up the local cutting industry and the development of alluvial diamond deposits in Angola. Mr. Kalitin mentioned those possibilities to the Angolan side which evoked understanding on the part of the Angolans.

The leaders of Angola’s mining industry expressed their appreciation of ALROSA’s contribution into the development of this sector.

‘Now the civil war is over there are no more obstacles for the expansion of co-operation with Angola’, said Mr. Mankenda Ambroise. The successful performance of Catoca is evidence of ALROSA’s high efficiency. We intend to discuss new forms of partnership. We hope that projects of which ALROSA is part of will be implemented in the designated time, dynamically and yielding high social and economic dividends for the Republic of Angola.