Press releases / Investment Programs have ensured 75% growth - Shareholders Meeting of the Zangezur Copper Molybdenum Combine CJSC
The results of the 2011 operations and the further production growth perspectives have been discussed during the Annual Shareholders Meeting of the Zangezur Copper Molybdenum Combine (ZCMC) CJSC that took place on May 14-15, 2011 in Kajaran, Armenia. The shareholders of the ZCMC are German CRONIMET Mining AG with 60% of shares, Plant of Pure Iron OJSC with 15% of shares, Armenian Molybdenum Production Ltd. and Zangezur Mining Ltd. with 12.5% of shares each.
The German shareholders have been represented at the Meeting by Mr. Guenter Pilarsky, the Founder and the Chairman of the CRONIMET Group of Companies and the Honorary Council of the Republic of Armenia in Baden-Wuerthemberg, Mr. Juergen Pilarsky, the Board Member of the CRONIMET Mining AG, Mr. Thomas Heil, the Executive Director, other managers of the company.
Together with the Shareholders and with the German delegation, the manager of the globally known ThussenKrupp AG, Dr. Frank Ehrenberg has also visited Kajaran. ThussenKrupp AG is one of the largest worldwide consumers of the ZCMC products, conducting its operation in about 80 countries around the globe with its 670 subsidiaries and 180,000 employees. In accord with the 2011 fiscal results, the annual sales volume of ThussenKrupp exceeded 49 billion EURO.
The members of the delegation have visited the Kajaran mine and familiarized themselves to the production process and facilities, newly built and renovated workshops completed as a result of the recently accomplished investment programs. Particularly, special attention has been paid to the recently completed auto park with its technical maintenance and renovation division, processing plant equipped with totally new flotation line, copper drying workshop with newly installed Outotec driers, two power substations equipped with ALSTOM equipment, steam production station with BUDERUS equipment, air pumping station, etc. Recently ore processing mill complex was launched in the combine, which is the biggest in the region. The overall volume of the investment in these area exceeded USD 100 million.
The delegation has further visited the modernized truck and car park, which now has new equipment for drilling and blasting workshop; the transportation and loading division equipped with the 135 and 90 tons Cterpillar and Belaz trucks with GPS-navigation, thus replacing 55-tons old trucks.
The main issues included in the Agenda and discussed during the Shareholders Meeting of the ZCMC were the presentation of the 2011 operations results and definition of future growth and production expansion perspectives. Summarizing the annual operations results, the shareholders have approved the procedure of paying the 5% of annual net profit the ZCMC employees as a bonus.
Currently, the main priority of the CRONIMET Mining AG policy in Armenia is the further expansion of the ZCMC production facilities. More than USD 500 million has been invested in the ZCMC since the privatization and as a result of this extensive investment programs carried out the production has grown by more than 75%. Today, the annual volume of ore extracted totals to 16 million tons while the production facilities of the Combine now allow processing about 20 million ore per year.