Modernization of Agarak Copper-Molybdenum Combine will in 2012 reach the production volume of 3.5 million tons
15.02.2011,
17:21
ARKA News Agency exclusive interview with the General Director of Agarak Copper-Molybdenum Combine Sergey Polovinkin
ARKA News Agency exclusive interview with the General Director of Agarak Copper-Molybdenum Combine Sergey Polovinkin
ARKA –Mr.Polovinkin, what production indicators are achieved in 2010 at Agarak Copper Molybdenum Combine (ACMC)?
Polovinkin - In 2009, the plant was idle for six months, and, of course, the year 2010 in this regard is different for the better. We have become stable since January the1st, and began to carry out the plan, and up to December met the main performance indicators. Truly, it is not easy, and there is no large over-fulfillment of the plan, but nevertheless we have implemented our plans. This applies to stripping, mining and processing, as well as production of metals.
Thus, in 2010 the volume of production and processing amounted to 3 million tons of ore. Production of copper concentrate exceeded the 2009 indicator by 133 tons and amounted to 28,600 thousand tons. Production of molybdenum concentrate is 530 tons.
Volume of stripping operations form 2.2 million cubic meters. This is a very serious growth, because in terms of 2009 the figure 1,8 million cubic meters was established. In other words, the mining operations in 2010 recorded considerable growth of production.
ARKA - What profit was able to form Agarak copper-molybdenum plant at the end of 2010?
Polovinkin - We have profit, but official figures will be published later, in accordance with Armenian legislation.
ARKA - What are the plans for the current 2011 year indicators?
Polovinkin - The volume of production and processing remain in the former regime, and growth in 2011 is expected only in stripping works. In the existing factory we simply are not physically able to process larger volumes.
If now the plan of stripping is 2.2 million cubic meters, then in 2011 we plan growth for stripping work to 2.5 million cubic meters. This is due to the fact that starting from 2012 we will increase mining volumes, and for this we need to, first, carry out stripping and make stocks.
I must say that we started reconstruction of the factory, and in this sense, 2011 we will be the most decisive. By the end of the year we have to come close to completing the reconstruction - according to the plan, the works must be completed in February 2012, but the bulk of the work is planned for 2011.
Thus, the expected growth in mining depends on reconstruction. The fact is that the mining operations are very inert. In order to get 3.5 million tons of ore in 2012, and we just so plan taking into account the fact that by 2011 this figure is planned at the level of 3 million tons, we must start stripping works now.
ARKA - What works are planned within the framework of reconstruction of ACMC?
Polovinkin-Equipment of ACMC was in a worn-out condition and therefore the production cost was very high, we had to implement a series of measures to reduce production costs and, in the result, enhance its competitiveness. The situation was aggravated at Agarak during the global crisis due to falling of metal prices, which necessitated taking of anti-crisis measures.
We have already prepared the feasibility task, which is prepared by the International Institute Mekhanobr and which is based on an integrated approach to designing new and modernizing existing plant. The project includes the development of efficient technologies, modern design and engineering solutions and the use of technological equipment with high technical and economic indicators.
The project is actively undergoing the last stage of expertise, the so-called "compulsory part." Drawings have already been issued, the construction work is underway. We conducted a tender for selecting the general contractor, who have already launched construction works since December 2010, in particular, the earthmoving work and works inside the factory, reconstruction of metal structures and concrete slabs.
After reconstruction, we will consume less electricity and chemicals. Reconstruction aims at not only increasing the extraction of metals from ore, but also reduction the materials in the production. We plan to increase the volume of recovery by 3-5%.
ARKA - What are the investments needed?
Polovinkin - The total amount of the project will be about $ 22-24 million. This is a preliminary assessment, I cannot name final figures, because prices are rising day by day. Everything becomes more expensive, including metal and concrete.
To date, we have used about $ 12 million. It was spent on project development, construction works, as well as the purchase of mining and flotation equipment.
ARKA - In fact, these works are carried out within the framework of the provided by the Government of Armenia stabilization loan of $ 14 million?
Polovinkin - Yes, and means are almost fully used. We are actively repaying the State credit since December 2009, and this process goes as planned.
Of the $ 14 million loan funds some part was spent on reconstruction of the factory, as well as on purchase of mining equipment and flotation equipment.
ARKA - How many workers are now employed at the factory, and whether will there be created additional jobs after the reconstruction of the factory?
Polovinkin - We now have approximately 900 employees. The fact is that the new equipment is automated and requires only raising the level of the skills of the employees.
Today is difficult to forecast about additional employees. At least we will try to keep the number of previous workers.
ARKA - Will the reconstruction matters regulate nature protection issues?
Polovinkin - Absolutely. First, accident rate will fall. In addition, if all goes according to plan, the modernization of the factory involves providing a closed production cycle. In other words, discharge of waste will be completely excluded. This includes the creation of pools, ponds, requiring constant cleaning, the water of which will be returned to the factory. I hope that by the end of the year we will be able to completely solve this problem, although it will require significant investments.According to the project $ 3 million is intended for environmental protection.
ARKA - Given the fact that ACMC is the main city-forming enterprise, what is its participation in social life of Agarak?
Polovinkin - I can say that in Agarak there is no any family, whose members are not the employees of our factory. About 80% of the population of the city works at ACMC.
We are doing everything possible to maintain Agarak. Under the agreement with the city-hall, we fill the city budget deficit. Considering the problem of raising the prosperity of our workers a priority, we continually invest in the development of socio-economic infrastructure of the city, investing, for example, in the field of fire protection, energy and water supply, renovation of hospitals, schools, kindergartens, house of culture.
ARKA - What is the amount of funds that ACMC allocates for implementation of social activities?
Polovinkin - The budget for social investment in 2010 amounted to at least $ 200 thousand. In 2011 the Social Investments officially will amount to $ 150 thousand. I think that every mono-production company must have a sense of corporate social responsibility. –0--
ARKA –Mr.Polovinkin, what production indicators are achieved in 2010 at Agarak Copper Molybdenum Combine (ACMC)?
Polovinkin - In 2009, the plant was idle for six months, and, of course, the year 2010 in this regard is different for the better. We have become stable since January the1st, and began to carry out the plan, and up to December met the main performance indicators. Truly, it is not easy, and there is no large over-fulfillment of the plan, but nevertheless we have implemented our plans. This applies to stripping, mining and processing, as well as production of metals.
Thus, in 2010 the volume of production and processing amounted to 3 million tons of ore. Production of copper concentrate exceeded the 2009 indicator by 133 tons and amounted to 28,600 thousand tons. Production of molybdenum concentrate is 530 tons.
Volume of stripping operations form 2.2 million cubic meters. This is a very serious growth, because in terms of 2009 the figure 1,8 million cubic meters was established. In other words, the mining operations in 2010 recorded considerable growth of production.
ARKA - What profit was able to form Agarak copper-molybdenum plant at the end of 2010?
Polovinkin - We have profit, but official figures will be published later, in accordance with Armenian legislation.
ARKA - What are the plans for the current 2011 year indicators?
Polovinkin - The volume of production and processing remain in the former regime, and growth in 2011 is expected only in stripping works. In the existing factory we simply are not physically able to process larger volumes.
If now the plan of stripping is 2.2 million cubic meters, then in 2011 we plan growth for stripping work to 2.5 million cubic meters. This is due to the fact that starting from 2012 we will increase mining volumes, and for this we need to, first, carry out stripping and make stocks.
I must say that we started reconstruction of the factory, and in this sense, 2011 we will be the most decisive. By the end of the year we have to come close to completing the reconstruction - according to the plan, the works must be completed in February 2012, but the bulk of the work is planned for 2011.
Thus, the expected growth in mining depends on reconstruction. The fact is that the mining operations are very inert. In order to get 3.5 million tons of ore in 2012, and we just so plan taking into account the fact that by 2011 this figure is planned at the level of 3 million tons, we must start stripping works now.
ARKA - What works are planned within the framework of reconstruction of ACMC?
Polovinkin-Equipment of ACMC was in a worn-out condition and therefore the production cost was very high, we had to implement a series of measures to reduce production costs and, in the result, enhance its competitiveness. The situation was aggravated at Agarak during the global crisis due to falling of metal prices, which necessitated taking of anti-crisis measures.
We have already prepared the feasibility task, which is prepared by the International Institute Mekhanobr and which is based on an integrated approach to designing new and modernizing existing plant. The project includes the development of efficient technologies, modern design and engineering solutions and the use of technological equipment with high technical and economic indicators.
The project is actively undergoing the last stage of expertise, the so-called "compulsory part." Drawings have already been issued, the construction work is underway. We conducted a tender for selecting the general contractor, who have already launched construction works since December 2010, in particular, the earthmoving work and works inside the factory, reconstruction of metal structures and concrete slabs.
After reconstruction, we will consume less electricity and chemicals. Reconstruction aims at not only increasing the extraction of metals from ore, but also reduction the materials in the production. We plan to increase the volume of recovery by 3-5%.
ARKA - What are the investments needed?
Polovinkin - The total amount of the project will be about $ 22-24 million. This is a preliminary assessment, I cannot name final figures, because prices are rising day by day. Everything becomes more expensive, including metal and concrete.
To date, we have used about $ 12 million. It was spent on project development, construction works, as well as the purchase of mining and flotation equipment.
ARKA - In fact, these works are carried out within the framework of the provided by the Government of Armenia stabilization loan of $ 14 million?
Polovinkin - Yes, and means are almost fully used. We are actively repaying the State credit since December 2009, and this process goes as planned.
Of the $ 14 million loan funds some part was spent on reconstruction of the factory, as well as on purchase of mining equipment and flotation equipment.
ARKA - How many workers are now employed at the factory, and whether will there be created additional jobs after the reconstruction of the factory?
Polovinkin - We now have approximately 900 employees. The fact is that the new equipment is automated and requires only raising the level of the skills of the employees.
Today is difficult to forecast about additional employees. At least we will try to keep the number of previous workers.
ARKA - Will the reconstruction matters regulate nature protection issues?
Polovinkin - Absolutely. First, accident rate will fall. In addition, if all goes according to plan, the modernization of the factory involves providing a closed production cycle. In other words, discharge of waste will be completely excluded. This includes the creation of pools, ponds, requiring constant cleaning, the water of which will be returned to the factory. I hope that by the end of the year we will be able to completely solve this problem, although it will require significant investments.According to the project $ 3 million is intended for environmental protection.
ARKA - Given the fact that ACMC is the main city-forming enterprise, what is its participation in social life of Agarak?
Polovinkin - I can say that in Agarak there is no any family, whose members are not the employees of our factory. About 80% of the population of the city works at ACMC.
We are doing everything possible to maintain Agarak. Under the agreement with the city-hall, we fill the city budget deficit. Considering the problem of raising the prosperity of our workers a priority, we continually invest in the development of socio-economic infrastructure of the city, investing, for example, in the field of fire protection, energy and water supply, renovation of hospitals, schools, kindergartens, house of culture.
ARKA - What is the amount of funds that ACMC allocates for implementation of social activities?
Polovinkin - The budget for social investment in 2010 amounted to at least $ 200 thousand. In 2011 the Social Investments officially will amount to $ 150 thousand. I think that every mono-production company must have a sense of corporate social responsibility. –0--
