The FINANCIAL — Joint Stock Company Madneuli, winner of Golden Brand award, plans to maintain its 2009 production volumes in 2010, do significant investments in exploration and development to the amount of 2.6 million USD and continue technical and financial feasibility studies for modernization projects.
“Chinese market is one of very attractive avenues for JSC Madneuli, given China’s economic growth and demand of our supply with this growth,” said Giorgi Devadze, General Director of Madneuli.
Madneuli’s copper concentrate output in 2009 was 65,307 tonnes.
“It was less than in 2008 but more than any previous year’s production. Production varies year by year based on available ores for the period, based on the fact that Madneuli deposit is very complex and mineralization is different in different directions.”
Devadze says that copper price decline had a significant impact on the company’s copper revenue but the advantage of having gold as a byproduct in concentrate and the measures taken by the management cost cutting, process optimization, helped the company to overcome the market decline and maintain stable operations.
The amount of copper ore mined was 2.6 million tonnes in 2009, slightly lower than in 2008 and higher than 2007, 2006, and 2005. Copper content was 0.47% less than in 2008 – 0.51%.
The company spent 1.3 million USD on Capex, mainly mining machinery and equipment. General and administrative costs reduced by 35% in 2009 and cash cost per tonne of concentrate by 19%, from 803 USD to 654 USD in 2009.
Q. A year has passed since you were hired at the position of General Director of Madneuli. How can you estimate your management?
A. I had to manage Madneuli during the most difficult time in the history of the company. During the global economic downturn I had to take important steps in order to support the employees; so that 1,500 workers could keep their jobs.
I managed to accomplish my main task successfully. So you can determine the quality of management.
All the decisions made by us in 2009 were important. But most important among them was creating a proper mining plan and optimization of expenses.
Q. How have the recent economical challenges changed your marketing and strategic plans for further development?
A. The global recession made us activate the strategy of our development more. As the result of that, we heightened implementation of search-quest works of Kvemo Bolnisi.
Besides mining operations JSC Madneuli is involved in many social programmes and charity activities. Besides this Madneuli is one of the leading companies, with a large number of employees and a main tax payer. Madneuli is the largest exporter amongst the Georgian company.
Q. What are the main factors that can support further development of your company?
A. Economic stability inside the country; stability of prices of concentrated products of copper on the global market; and high professionalism of our employees are the main factors that can support further development of our company.