Agarak Copper Molybdenum Combine CJSC processed around 1.3 million ton of ore in the first half year of 2009, exceeding 2008 results (second half year) by 5%. As predicted, the volumes of ore mining and processing shall increase up to 3-3,5 million ton in the current year.

In 2009 the Company produced about 248 ton molybdenum concentrate and 13.500 ton copper concentrate. In February of 2009, because of the impact of global economic crisis the Company stopped its production activities and resumed its full scale operation starting from June 30. Since the end of 2008 ACMC’s operation became instable and starting from the month of October it started to accumulate losses, which were covered at the expense of investments of the shareholders. From the moment of stoppage of the Company 500 employees out of 900 continued renovation-recovery works and received full salaries, and 400 employees were on downtime vacation, and received 2/3 of their salaries. After the Company restarted it operation all the employees were reinstated.

Increase of the processing volumes last year was achieved due to the anti-crisis program, which was aimed at technical re-equipment, which resulted in increase of mining and production effectiveness. The program suggests a systematized approach, including capital investments for modernization of production, raising of qualification of junior staff, as well as changes of organizational structure of the Company.

In 2010 the Company is planning to increase mining and processing volumes up to 3-3,5 million ton, and reach the volumes of stripping works up to 2.2 million cubic meters. Growth shall be obtained due to technical re-equipment and, particularly due to modernization of the processing plant. In the result of such re-equipment ore processing capacity of the plant and the extraction level of useful matter will increase. Due to modernization of the plant the self-cost of the production will considerably reduce, because the costs for electric power, photoreagents and other components will decrease.
For mining of 3,5 million ton ore it is important to increase the number of mining machinery and vehicles. Increase of ore mining will bring about increase of stripping works.

Social issues are one of the most important problems for the management. Salaries are regularly paid and all social responsibilities are being carried out. City-formation policy is one of the Companys priorities. It is actively cooperates with the Agarak city administration, and to the extent of its abilities participates in realization of social projects.

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.