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Russian diamond giant set to buy coal, gas assets

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MOSCOW, December 16 (RIA Novosti) - The president of Russian state-owned diamond giant Alrosa said Friday that as part of its diversification plan, the company would buy coal and natural gas assets.

Alexander Nichiporuk said Alrosa, co-owned by the federal government and the government of the diamond-rich northern Russian republic of Yakutia, was primarily interested in buying local non-core businesses, specifically the coal mining company Yakutugol and Yakutgazprom, a subsidiary of the Russian natural gas monopoly Gazprom.

Yakutia's government is expected to sell a 5% stake in Yakutugol next year and Alrosa said it may be among the bidders.

Nichiporuk said Alrosa would build an oil refinery in the Yakut town of Mirny next year to reduce dependency on outside fuel supplies. The refinery will have an annual capacity of 250,000 metric tons of oil.

Alrosa is Russia's largest and the world's second largest producer of unrefined diamonds.

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