On July 2004 the Rosbalt Information Agency reported that shortly after the inspection in the Arkhangelsk Region the Department of State Control and Prospective Development in Natural Development and Environmental Protection for the North West Federal Region of the RF Ministry of Natural Resources initiated cancellation of ALROSA’s exploration licence there.

The ALROSA press service wishes to clarify the situation as the report by Rosbalt has already lead some of the media to spread allegations about the recall of ALROSA’s mining right in the Arkhangelsk region.

The above-mentioned inspection by the Department of the RF Natural Resources Ministry of Severalmaz, ALROSA subsidiary involved in the development of the Lomonosov diamond field in the Arkhkangelsk region, established that all the work connected with the use of the subsoil was conducted there in full compliance with the existing government regulations and requirements.

As to the five-year exploration licence for the Yursko-Dvynsky area earlier issued to ALROSA, the inspectors of the Department stated that the license had to be issued by the Ministry itself, and not by its regional department as was done before. It is a simple procedural issue that will not result in a change of the leaseholder. Therefore all the allegations that ALROSA’s exploration and mining licenses have been revoked are not true.