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Development Strategy

Mission Statement

The mission of JSC Atomredmetzoloto is to ensure the competitiveness of long-term supplies of raw materials for the development of Russian technologies, primarily in nuclear energy.

The business vision of ARMZ is based on the status of a national producer, which guarantees the supply of raw materials to its main shareholder, Rosatom State Corporation, at a competitive cost and without geopolitical risks.

The following are the basic competitive advantages of the company:

the raw materials base, unique in scale, enabling a profitable extraction of valuable components (uranium and other strategic metals);
high-tech production assets, modern scientific potential and a qualified team with many years of experience in the mining industry;
a full range of competencies for managing the life cycle of development and operation of deposits, including in complex natural and climatic conditions.

Corporate Values of JSC Atomredmetzoloto

Corporate Values

Implementation in JSC Atomredmetzoloto;

“One Step Ahead”

leveraging the potential of the core markets;
adoption of modern Russian and world practices and technologies in geological exploration, production, corporate governance and social policy;
implementation of projects to diversify the business, ensuring its growth and sustainability.

“Responsibility for Result”

uninterrupted and stable supply of Russian and foreign consumers with products that meet the quality standards;
doing business in a socially responsible manner, emphasis on the development of territories of presence.

“Efficiency”

implementation of the principles of the Rosatom Production System (RPS) in production and in day-to-day operations;
an optimal management system that strikes a balance between initiative and control, responsibility and resources;
transparent procurement system that improves the efficiency of spending;
sustainable and responsible use of production and financial resources.

“One Team”

continuous professional development, increasing motivation and welfare of staff;
organization of cultural, sports and charity events.

“Respect”

building long-term trust relationships with customers, suppliers and local communities;
openness to public authorities, investment and industry communities, partners, employees and other stakeholders.

“Safety”

ensuring a high level of industrial safety and labor protection, which guarantees the protection of workers’ health and the well-being of the environment;
compliance with process standards for the extraction and processing of natural uranium, including standards for nuclear and radiation safety;
compliance with regulatory requirements and enhancing environmental safety of production.

Strategic Vision and Goals

In the reporting year, the Mining Division made a significant contribution to strengthening the market positions of the Russian nuclear industry and a secure supply of raw materials for its needs, which are growing along with the increase in the long-term portfolio of orders. Work was continued to improve efficiency: in 2017, the full cost of uranium at the enterprise of the Division was reduced by 10% relative to the target.

The development of uranium assets was accompanied by an increase in the mineral resource base (in JSC Dalur) and further work to develop new uranium deposits (at the sites of JSC Khiagda and JSC Dalur). Priargunsky Industrial Mining and Chemical Union, PJSC, the Division’s largest production site, maintained in 2017 a break-even level of operations and fully implemented the program for the implementation of the project “Mine No. 6”.

The activity in the development of new business lines allowed the Mining Division, in addition to fulfilling the targets set by the Rosatom State Corporation, initiate new mining projects. The fruitful and persistent work of the team in these and other areas allowed the creation of conditions for further sustainable development of the company’s business.

Strategic Objectives of the Company

In the implementation of its long-term strategy, ARMZ is guided by the strategic goals set by the Rosatom State Corporation. Their reflection in the company’s activities predetermines its strategic objectives

Contribution to the Implementation of the Strategy of the Rosatom State Corporation

In developing uranium mining, ARMZ proceeds from the needs of the Rosatom State Corporation and from the market conditions. Russian enterprises do not have the task of producing uranium “at any cost”, what is placed front and center is ensuring security and competitive cost price. This approach is complemented by the search and implementation of innovative design and technical solutions and cost optimization, which allows maintaining the sustainability of the business under any external conjuncture.

The the following remain main areas of development of uranium mining in Russia:

commencement of construction of mine No. 6 in Priargunsky Industrial Mining and Chemical Union, PJSC (its launch in 2023 will support the uranium production volumes once the existing mines are retired);
maintenance of economically viable uranium mining in JSC Dalur and building up uranium production in JSC Khiagda as part of achievement of full operational capacity.

Important groundwork has been laid in these areas:

in Priargunsky Industrial Mining and Chemical Union, PJSC, the work program for the project “Mine No. 6” was completed in full in 2017 with a view to commencing its construction in 2018, in the year of the 50th anniversary of the enterprise;
at the site of JSC Khiagda, experimental work on the refinement of the development mode at the Istochnoe deposit was conducted. In addition, the physical start-up of the mining complex and auxiliary facilities at the Vershinoye deposit was carried out. These works were performed with the purpose of bringing the enterprise to projected capacity (1000 tpa of uranium);
JSC Dalur obtained a license for the Dobrovolnoe uranium deposit in 2017.

Other promising uranium projects, including the Elkon project, are in strategic reserve until there is a steady improvement in the external environment. They are not projected for commissioning until 2030 at the earliest.

In the specified period, uranium production will remain the principal business of JSC Atomredmetzoloto. Work on the development of existing enterprises will be supplemented by the implementation of new projects in the mining and related areas, which will ensure a multiple growth in the Division’s scale of business, as well as increase its social and financial stability.