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Implementation of JSC PIMCU programme for reaching break-even operation and production diversification discussed during working trip of Vladimir Verkhovtsev, Director General of JSC Atomredmetzoloto, to Krasnokamensk
According to the Chief Executive Officer of Rosatom State Atomic Energy Corporation’s mining arm, attracting external investors to Krasnokamensk is one of top-priority objectives. Representatives of potential investors, accompanied by senior managers from JSC Atomredmetzoloto and JSC PIMCU, inspected tentative sites for location of industrial facilities. “The first step towards creating a mining and metallurgical cluster with a centre in Krasnokamensk is the Cooperation Agreement between Rosatom and Norilsk Nickel. Our task is to attract as many investors as possible to the south-east of the Trans-Baikal Territory. Krasnokamensk possesses all resources for it to become an area of advanced economic growth. It has a perfectly developed infrastructure, abundant energy capacities, high-quality human resources and is located in proximity of the Trans-Siberian railway and the Chinese frontier. We are planning to organize in Krasnokamensk new production facilities such as a pyrite cinder treatment plant, an explosive manufacturing site, a plant for processing non-ferrous metals concentrates, etc. Implementation of this project will contribute to the region’s socioeconomic development, additional job creation and people’s living standard enhancement,” noted Vladimir Verkhovtsev.
Taking into consideration the current situation on the uranium market, characterized by overproduction of this metal and drop in prices, diversification seems to be of particular importance for JSC PIMCU. Today, the enterprise is unprofitable, with production costs growing and the level of product output per person decreasing. On the Briefing Day, traditionally held for the Industrial Union’s employees and the Krasnokamensk city residents, JSC Atomredmetzoloto Director General told them about decisions that had been made. He said that for JSC PIMCU to reach break-even operation it is necessary to reduce expenses by 3 billion rubles in 2014 and 2015, i.e. by 1.5 billion rubles annually. “Major focus areas include optimizing costs, lowering investment spending, cutting purchase volumes and optimizing the staffing level. Herewith, it is to be noted that the personnel number optimization is in the fourth position, while greater emphasis shall be placed on less sensitive methods for cost reduction. In the course of meetings with JSC PIMCU senior management we have already determined main process activities and aligned the procurement programme. Our sales volumes of coal and other products on foreign markets are increasing. We will definitely continue downsizing the administrative staff, because the management system at JSC PIMCU is excessive and inefficient. At the same time, we have to maintain the uranium chain, the production of the raw material that is strategically important for our country, with simultaneous productivity enhancement by at least 5% per year,” explained Vladimir Verkhovtsev.
Special attention during the working trip was paid to the projects aimed at reducing and eliminating impact on the environment. In particular, these involve preparing for the construction of a new ash dump at the Thermal Power Station; reclaiming post-mining area at the Urtuiskoye Open-Pit Brown-Coal Mine and keeping the Leach Plant’s warehouses in a good working order. “Our environmental policy is based on such major principles as environmental responsibility, strict compliance with environmental safety requirements and prevention of adverse effects,” highlighted ARMZ Uranium Holding Co. Director General.