Tuesday, April 10 2018 11:25

Andrei Siniakov : We believe that ACMC was “born” with a silver spoon in his month

Andrei Siniakov : We believe that ACMC was “born” with a silver spoon in his month

Agarak copper-molybdenum Combine (ACMC) is one of the key enterprises of the mining industry in Armenia. Since 2009 the plant is an important asset of GeoProMining (GPM) diversified international group of companies, which also owns the Sot gold mine and Ararat gold digging plant. Since 2017 the plant launched a new stage of large-scale works on further modernization, regarding technical re-equipment, production capacities expansion and productivity growth, which should lead not only to the uninterrupted operation of the enterprise itself in conditions not very favorable in international price environment, but also to the strengthening of the enterprise's position as a reliable employer, making a significant contribution to the social and economic development of the region. Andrei Siniakov, the general director of ACMC told about the enterprise tasks and future plans to the correspondent of ArmInfo.

Andrei Siniakov - General Director of Agarak copper-molybdenum Combine CJSC since January 2017. Candidate of Technical Sciences. Mining engineer, informatics - economist. He graduated Yakutsk State University Technical Institute (branch) in Neryungri, the Republic of Sakha (Yakutia), by "Open mining" and "Applied Informatics in Economics" professions. In the period 1997 - 2011 Andrei Siniakov passed through interesting career, starting from excavator driver assistant up to technical director deputy - the head of prospective management unit, technologies and development of mining works at "Yakutugol" CJSC. In the course of 2011 - 2014 Andrei Siniakov worked as a chief engineer deputy - head of Timir CJSC technical management, engaged in the extraction of iron ore in Yakutia. In 2014 he became director of Tekhstroykontract OJSC by mining and construction equipment sale and leasing section. From 2014 to 2016 Andrei Siniakov  worked as Deputy of Industry Minister, in  the Republic of Sakha (Yakutia).

Mr. Siniakov, a large investment program for capacity expansion is being realized at ACMC. In compliance with it, in the course of some years, a substantial investment in the technical re-equipment of the plant, modernization of such processes as flotation, grinding, are to be invested. The combine must expand production and increase work places number. What are the program realization terms and at what stage are you today?

To be short, in the scopes of development, upcoming prospective of production capacities enhancement is planned in ACMC CJSC. First of all, it is enrichment plant with 3,5 million tons up to  4,1-4,5 million tone iron ore annually. Today we have concluded contracts with the project institutes regarding the technical project development, and the question on necessary equipment delivery, is under consideration.

And yet, by what extend, the production capacity of ACMC will  increase? How much will the production efficiency increase at the factory? Has the company reached the planned figure of 3.5 million tons of ore by the results of 2017? When will the company reach the planned 6 million tons? To what level of profitability will this be possible for an enterprise to leave?

The year 2017 for the ACMC as was productive in general, even despite 2015-2016 crisis events. In the first half of the year, we carried out the necessary measures in current equipments repairing direction. It’s fame is restored, and in May we started launching a program of technical re-equipment. 13 dump trucks MT-86, track laying bulldozer Shantui SD-32 and two excavators Komatsu PC-400 were purchased. Overall, equipment worth more than 2.5 million US dollars was purchased. As a result of made work, since mid-2017, production volumes have begun to grow. Now the plant challenges of achieving level on ore processing in the amount of 4.1-4.5 million tons in 2019 and in the long run prospective, up to 6 million tons. I should state that with the  output of 4.1-4.5 million tons annually will allow ACMC to reduce the specific self cost to the level at which ACMC can remain profitable even at very low prices for metals, it the way it was in the years of 2015- 2016.

What are the financial results of the work of ACMC for 2017 and plans for the medium term prospective?

The financial results were in 2017 were much better than that of 2015-2016. In 2018, we will claim for even more positive results. The main directions of development in financial plan are: credit load reduction at the expanse of borrowed means ratio to own capital stock, financial expanses limitation at the cost of increasing in portfolio law interest rate loans, as well as obtaining preferential credits from the main suppliers with grace period payments for the purchase of raw materials. Taking into account ACMC of the financial condition improvement these plans are feasible

What is your attitude towards the British international initiative EITI (Extractive Industries Transparency Initiative – as by editor.), to which Armenia has joined?

Extractive Industries Transparency Initiative (EITI) – is a worldwide standard, that contributes to open management and accountability in the sectors of oil, gas and mineral resources. Natural resources belong to the citizens of the country. Extraction of these resources can lead to economic growth and social development. However, natural resources poor management, often led to corruption and conflict. For all Armenian citizens to take benefit from natural resources,  greater openness and public control over how the richness of the country's extractive sector is used, in accordance with RA legislation, is required. The EITI standard implies, first of all, the public's access to financial statements, both the extractive industry and the state's reporting on the revenues received from the current sphere. It goes without saying, the public should be informed about the real tax and social load of extracting enterprises. So that I treat the initiative quite positively.

AMCM is a mono-production enterprise. What kind of social activities does the company implement in Meghri and Agarak communities? To what extend you have succeeded in being integrated in the town social life, and how is the sunny South of Armenia to you, after northern Yakutia?

A great part of my life is connected with Yakutia, I was born there, I got my education and got married there, passed through the way from an excavator driver assistant up to  the deputy of industry minister, Republic of Sakha (Yakutia). Now, by fate, I came to this fertile region - the Republic of Armenia. I really like it here, it's wonderful, hardworking, sympathetic and hospitable people. There is a mild climate and very interesting work. For that reason I made up my mind to stay here for a long time in order to invest all my knowledge, skills, and abilities  for bringing to life all the projects of the company "GeoProMining"  at the plant of Agarak town too,  together with local residents.

In 2018 ACMC marks the 55th anniversary of the plant's launch. How does the company plan to celebrate the anniversary?

Yes, in May 2018, it will be 55 years since the launch of our company. A long way is passed, the enterprise works, but there is undoubtedly much more to be done. We believe that ACMC was "born" with a silver spoon in his month, and today the enterprise do not only operate but is also being modernized, and in near future there will be an increase in productivity, which will naturally affect both the increase in workplaces and the growth in financing programs for social responsibility of the enterprise in front of the Meghri community. As by today, ACMC CJSC employees number is 996 people. Due to modernization and increase in production capacity at least 50 additional workplaces are planned to be opened.

In honor of this significant date, the company is planning a number of celebrations at the end of May. We will not reveal secrets, but we are organizing a traditionally good holiday for our home city, dear employees and veterans of our plant.

 

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