GeoProMining Company is planning to invest additional resources in modernization of Agarak Copper Molybdenum Combine CJSC (ACMC). The volume of investments is not specified yet and the final sum will be known after reconstruction of the processing plant supposed to be finished within a 2-year period, the company said in a press release.

Global prices for copper and molybdenum have started to increase recently, boosting the income of the company, as well as its attractiveness for investments. Investments include also the RA government’s USD 14 million loan, provided in 2009.

On June 26, the RA government decided to grant a USD 14 million budget loan to ACMC CJSC, for a 4-year period. The loan was granted to ACMC for investment project, including procurement of machinery and reconstruction of the plant. Part of the funds was used for purchase of mining machinery, which have already been delivered and set in operation. Specifically, 5 BelAz mine dump-trucks of 55 ton carrying capacity. At the end of 2009, the company obtained BelAz wheel-loaders, two TK wheel-tractors and one tractor with bulldozer and ripper. Purchase of mining machinery and reconstruction of the processing plant constitutes the component part of the Company’s anti-crisis program, directed on increase of mining volumes and competitiveness of the company’s production.

Other part of the loan amount was used for purchasing of flotation equipment Metso Minerals, delivered at the beginning of 2010. The machinery operated at ACMC for many years were morally and physically outdated, because since the establishment of the company no major investments have been made, and for that reason the costs for mining activities have been constantly growing. The new mining machinery provide an opportunity to increase the mining volumes and raise the effectiveness of mine operation. Total loan amount, received in September of the last year will be used in 2010. In December 2009, the company started payment of interests.

Taking into account the large-scale program goals, GeoProMining plans completion of reconstruction process by the end of 2011. Reconstruction shall be carried out without stopping of production activities. Further replacement of equipments, which have already been purchased and currently undergoing customs clearance shall continue.

For 6 months of 2009 ACMC CJSC processed around 1.3 million tons of ore, which is more for 5% as compared to the 6 months of 2008 results. As anticipated, during this year mining and processing volumes will increase up to 3-3,5 million tons.

GeoProMining Group obtained the shares of Agarak Copper Molybdenum Combine in December of 2007. GeoPromining specializes in mining and processing of metaliferous ores (copper, molybdenum, antimony) and precious metals (gold, silver). The Group has a diversified production structure and markets. Deposits and processing plants of the Group are in Russia, Armenia, Georgia and Vietnam.