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Chelyabinsk branch of resource base expands Altai zinc

To expand the raw material base of the Chelyabinsk zinc factory has its own reasons. Now Chelyabinsk branch, owned the shares in UMMC and RMK UCP busy buying Garbalinski deposits in the Altai. Officially held the transaction to explain the need of expanding the raw material base of the enterprise, since the plant relies on the supply of UMMC. However, some sources claim that the Chelyabinsk branch ready for sale.

Representatives Zinc plant recently reported that 100% of the shares will acquire JSC «Garbalinski mine.» The mine assets include 26 million tons of ore. The content of zinc is over 6%, also has copper, silver, gold and lead. The annual production volume could reach 1 million tons of raw materials. In previous plans UMMC annual processing capacity of the field was 1.5 million tonnes of ore. The annual output of zinc and copper concentrate is expected to reach 120 000 and 16 000 tons, respectively. To reach full design capacity of UMMC was going to 2021.

Coming the deal the representatives of the Chelyabinsk branch explain existing plans to increase annual production to 500,000 tons of zinc. In 2014, the number of received zinc only amounted to 168 000 tonnes. For this reason, it is necessary to expand raw material base. The measures will contribute to reduction in imported raw material, which is usually more expensive than domestic ones by 10−15%. In late April, analysts UMMC estimated the project at 18 billion RUB. To date, the company has invested 3.5 billion RUB. Moreover, the representatives of Chelyabinsk branch did not report the size of the investment by the plant, not misleading and the size of the loan from banks. A similar mystery is explained by details of the investment programme, which will be known after the completion of the transaction. Its terms were not disclosed.

As to the sale of the Chelyabinsk plant, such a possibility does exist. On potential buyers information not available. In December last year, UMMC, which owned 47% shares of NF Holdings, has left the Dutch company. Who currently decorated stake, Chelyabinsk branch does not indicate, however, some sources claim that the owner is still the UMMC.

Last year the consolidated income Chelyabinsk plant amounted to 16.5 bln RUB. Profit reached RUB 2.35 billion, EBITDA amounted to 3.8 bn RUB. Experts believe that the Chelyabinsk zinc enterprise-wide perspective, given the growth in galvanized rolled «Severstal» and NLMK.

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