On 30^th July in his Moscow office president of ALROSA Vladimir Kalitin received Gary Nash, Assistant Deputy Minister, Minerals and Metals Sector, Natural Resources Canada.

ALROSA Co. Ltd. has a long and successful record of co-operation with Canada. For a few years it has been purchasing machinery and equipment adjusted for harsh climatic conditions of the North direct from Canadian manufacturers. In 2003 a US $15 million credit line for the term of 5 years was open for ALROSA by EDC (Export Development Canada), which will enable the company to secure shipments of Canadian machinery and equipment on favorable terms and help restructure the company’s loan portfolio.

ALROSA experts share their expertise and know-how in exploration, mining and ore treatment with their Canadian peers on a regular basis. In their turn Canadian diamond miners give a high appraisal of the use of ALROSA experience in the development of Canadian diamond deposits.

Mr. Nash stressed that the Canadian government had a clear interest in the further expansion of the country’s diamond industry as it meant new jobs and investment into the economic development of the country’s northern aboriginal territories. Also one of the priorities was maintaining healthy competition in the industry.

Having all the above in mind Mr. Nash proposed that ALROSA contemplate entering into exploration and development of new diamond deposits in Canada. In his opinion ALROSA is one of the world’s major diamond producers and a recognized leader in geological exploration and diamond mining in the Far North, which is especially important for Canada.

Vladimir Kalitin thanked Mr. Nash for his proposal to expand co-operation and expressed his willingness to consider it.