Russian diamond monopoly ALROSA and one of the biggest mining companies - Rio Tinto conducts talks with Karelia government on establishing a joint venture for searching diamonds in Karelia, sources in Korelian government told RIA Novosti correspondent.

All the necessary documents will be drawn up by the mid 2001. ALROSA share to amount 51%, Rio Tinto - 24% and Korelian Government - 25%. By the end of 2001 ALROSA is to invest $1 mln in the project.

According to assessment of Natural Resources Committee of Karelia diamond reserves are worth $650 mln to $1 bn.

ALROSA share of world diamond production is 20%, in 2000 the company mined $1.5 bn diamonds.