GEOPROMINING TO MAKE ADDITIONAL INVESTMENTS IN ACMC CJSC
PanARMENIAN.Net
04.02.2010 13:39 GMT+04:00
/PanARMENIAN.Net/ GeoProMining Company is planning to invest
additional resources in modernization of Agarak Copper Molybdenum
Combine CJSC (ACMC). The volume of investments is not specified
yet and the final sum will be known after reconstruction of the
processing plant supposed to be finished within a 2-year period,
the company said in a press release.
Global prices for copper and molybdenum have started to increase
recently, boosting the income of the company, as well as its
attractiveness for investments. Investments include also the RA
government’s USD 14 million loan, provided in 2009.
On June 26, the RA government decided to grant a USD 14 million
budget loan to ACMC CJSC, for a 4-year period. The loan was granted
to ACMC for investment project, including procurement of machinery
and reconstruction of the plant. Part of the funds was used for
purchase of mining machinery, which have already been delivered and
set in operation. Specifically, 5 BelAz mine dump-trucks of 55 ton
carrying capacity. At the end of 2009, the company obtained BelAz
wheel-loaders, two TK wheel-tractors and one tractor with bulldozer
and ripper. Purchase of mining machinery and reconstruction of the
processing plant constitutes the component part of the Company’s
anti-crisis program, directed on increase of mining volumes and
competitiveness of the company’s production.
Other part of the loan amount was used for purchasing of flotation
equipment Metso Minerals, delivered at the beginning of 2010. The
machinery operated at ACMC for many years were morally and physically
outdated, because since the establishment of the company no major
investments have been made, and for that reason the costs for mining
activities have been constantly growing. The new mining machinery
provide an opportunity to increase the mining volumes and raise
the effectiveness of mine operation. Total loan amount, received in
September of the last year will be used in 2010. In December 2009,
the company started payment of interests.
Taking into account the large-scale program goals, GeoProMining plans
completion of reconstruction process by the end of 2011.
Reconstruction shall be carried out without stopping of production
activities. Further replacement of equipments, which have already been
purchased and currently undergoing customs clearance shall continue.
For 6 months of 2009 ACMC CJSC processed around 1.3 million tons of
ore, which is more for 5% as compared to the 6 months of 2008 results.
As anticipated, during this year mining and processing volumes will
increase up to 3-3,5 million tons.
GeoProMining Group obtained the shares of Agarak Copper Molybdenum
Combine in December of 2007. GeoPromining specializes in mining and
processing of metaliferous ores (copper, molybdenum, antimony) and
precious metals (gold, silver). The Group has a diversified production
structure and markets. Deposits and processing plants of the Group
are in Russia, Armenia, Georgia and Vietnam.