Russia's state-owned diamond producer, Alrosa, plans to increase its budget for mine construction and will spend over $250 million on underground diamond mines in 2011, the company has announced following a meeting of its Executive Committee.

In addition to investing in diamond mine infrastructure, Alrosa also plans to put more money into prospecting for diamonds and expects to spend over $128 million on diamond exploration this year.

Alrosa expects its 2011 sales of rough and polished diamonds to hit $4.7 billion, and the company is seeking to reduce its consolidated debt to $2.73 billion, compared to its 2010 debt of $3.13 billion.

The Executive Committee also examined Alrosa's iron ore project in South Yakutia and looked into ways of optimizing the management structure of its projects in Africa.