ARMZ Uranium Holding Co. released annual report for 2016

JSC AtomRedMetZoloto released public annual report (hereafter-report) being the ninth report of the ARMZ Uranium Holding Co. at the corporate website.

2016 became the most successful over 10 years’ history of the Mining Division despite unfavourable macroeconomic conditions and falling of the market quotations for the company’s production lasting for the recent years. The key challenge of the Holding remains to be stable provision of The State Corporation Rosatom with strategic raw materials preserving competitiveness of the Russian uranium. In this regard “Ensuring competitiveness of the Russian uranium: results and prospects” became the priority theme.

The report was prepared for the first time using up-to-date Standard in the sphere of sustainable development GRI Sustainability Reporting Standards. Moreover, a section dedicated to the strategy in the sphere of sustainable development appeared for the first time in the report. Marina Liborakina Deputy Director General for strategy and business development noted: “Corporate social responsibility and sustainable development are the essential parts of ARMZ Uranium Holding’s strategy. This year we have tried to analyse the interconnection of the United Nation’s sustainable development goals and activity of the Holding in our report.”

The Holding has succeeded in further reduction of uranium production cost in 2016 (by 2% in comparison with 2015). Moreover, PJSC PIMCU has reached breakeven point thanks to hard work on enhancement of the efficiency, which has become the most significant achievement of the whole team lately.  

Works on mineral recourses base absorption forming the image of the Russian uranium mining throughout the whole XXI century are in active process.  Project for Mine No. 6 construction by PJSC PIMCU has successfully passed expert review. General construction work has been completed on the site of JSC Khiahda, infrastructure development aiming to start some new uranium deposits and to reach design capacity production of the enterprise is continued.

Business diversification projects have substantially developed what is one of the priorities of the State Corporation Rosatom. JSC AtomRedMetZoloto is actively evolving projects for production of the strategic metals. The fist of them, the project Scandium (JSC Dalur) is the start of commercial procurements of the products scheduled for 2017. Development of other projects for the benefit of effective raw material supply for the Russian high technologies is conducted in cooperation with the Russian companies. 

Field geological exploration at the Pavovskoye deposit on Novaya Zemlya (with recognition of zink and lead reserves) is entirely completed.  It is important that sales of products of the future enterprise has already been confirmed by preliminary agreements with customers. The project Pavlovskoye is one of the drivers of the Russian Arctic development and promising arena for possible cooperation both with other enterprises and with foreign partners.  

Long but fundamentally important work on designation the city of Krasnokamensk as Priority Social and Economic Development Area was crowned with success, what will give the possibility to broaden opportunities of The Zabaikalye Territory in attracting potential investors and developing new productions. A number of them have already affirmed their readiness to work in the new uranium capital of Russia.

JSC AtomRedMetZoloto aims to ensure high level of publicity and transparency of its activity maintaining communication with all the interested parties (stakeholders) and realizing them in preparation of the public reports. Remote dialogue devoted to discussion of the report concept took place in November 2016. Two dialogues devoted to the priority theme of the Report took place on the 9th of February, 2017. Public consultations on the Report discussion took place on the 19th of April, 2017.

Stakeholders also took part in the key aspects definition procedure and public verification of the Report.