Agarak Copper Molybdenum Combine Plans To Increase Production Volume

AGARAK COPPER MOLYBDENUM COMBINE PLANS TO INCREASE PRODUCTION VOLUMES IN 2010

PanARMENIAN.Net
03.02.2010 18:37 GMT+04:00

/PanARMENIAN.Net/ Agarak Copper Molybdenum Combine CJSC processed
around 1.3 million ton of ore in the first half year of 2009, exceeding
2008 results (second half year) by 5%. As predicted, the volumes of
ore mining and processing shall increase up to 3-3,5 million ton in
the current year.

In 2009 the Company produced about 248 ton molybdenum concentrate and
13.500 ton copper concentrate. In February of 2009, because of the
impact of global economic crisis the Company stopped its production
activities and resumed its full scale operation starting from June 30.

Since the end of 2008 ACMC’s operation became instable and starting
from the month of October it started to accumulate losses, which were
covered at the expense of investments of the shareholders. From the
moment of stoppage of the Company 500 employees out of 900 continued
renovation-recovery works and received full salaries, and 400 employees
were on downtime vacation, and received 2/3 of their salaries. After
the Company restarted it operation all the employees were reinstated.

Increase of the processing volumes last year was achieved due to
the anti-crisis program, which was aimed at technical re-equipment,
which resulted in increase of mining and production effectiveness. The
program suggests a systematized approach, including capital investments
for modernization of production, raising of qualification of junior
staff, as well as changes of organizational structure of the Company.

In 2010 the Company is planning to increase mining and processing
volumes up to 3-3,5 million ton, and reach the volumes of stripping
works up to 2.2 million cubic meters. Growth shall be obtained due to
technical re-equipment and, particularly due to modernization of the
processing plant. In the result of such re-equipment ore processing
capacity of the plant and the extraction level of useful matter will
increase. Due to modernization of the plant the self-cost of the
production will considerably reduce, because the costs for electric
power, photoreagents and other components will decrease.

For mining of 3,5 million ton ore it is important to increase the
number of mining machinery and vehicles. Increase of ore mining will
bring about increase of stripping works.

Social issues are one of the most important problems for
the management. Salaries are regularly paid and all social
responsibilities are being carried out. City-formation policy is one
of the Companys priorities. It is actively cooperates with the Agarak
city administration, and to the extent of its abilities participates
in realization of social projects.

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.