About Company

$20.70
US$/lb
11 September 2017

History

State Concern Atomredmetzoloto was founded in 1991 to succeed to the former First Chief Directorate of the USSR Ministry of Medium Machine Building and later operated within the structure of the Ministry for Atomic Energy of the Russian Federation. The concern was an industrial complex of mining and processing enterprises located in six counties within the Commonwealth of Independent States — Russia, Ukraine, Uzbekistan, Kazakhstan, Tajikistan, and Kyrgyzstan. State Concern Atomredmetzoloto was involved in exploration, mining and processing of uranium- and gold-bearing ores, as well as of rare and rare earth element ores. It was also engaged in design of mines, ore processing facilities, and machine engineering plants. In 1995, State Concern Atomredmetzoloto was reorganized to become a joint stock company of the open type. In 1999, owing to the re-registration of joint stock companies, it was transformed into JSC Atomredmetzoloto.

By mid 2007, within the framework of the nuclear industry restructuring, JSC Atomredmetzoloto received control over the following domestic uranium mining assets: JSC Priargunsky Industrial Mining and Chemical Union (JSC PIMCU), JSC Dalur, and JSC Khiagda, which had been formerly owned by JSC TVEL, a producer of fuel for nuclear power plants. Furthermore, JSC Techsnabexport, Russia’s exporter of enrichment services and enriched uranium, transferred to ARMZ its stakes in uranium exploration and mining joint ventures abroad. Along with that, JSC Atomredmetzoloto received from JSC Techsnabexport licenses for the right to use subsoil of the reserve uranium deposits, including those of the world’s largest Elkon Uranium Ore Province.

After completion of all re-organization activities, JSC Atomredmetzoloto assumed full authority over procurement for the domestic and international feedstock requirements of Russia’s nuclear industry and became one of the global leaders in uranium production.

In 2008, with a view to rendering the company’s name compliant with its business objectives, as determined by the State Atomic Energy Corporation Rosatom, the management of JSC Atomredmetzoloto made a decision to re-brand the company, changing its name to ARMZ Uranium Holding Co.

In 2009, JSC Atomredmetzoloto purchased Effective Energy N.V., thereby consolidating the Russian stake in Kazakhstan-based uranium mining joint ventures. As a result of an asset swap deal, JSC Atomredmetzoloto acquired a 19.95% stake in Canadian uranium mining company Uranium One Inc. Representatives of ARMZ Uranium Holding Co. joined the Board of Directors of Uranium One Inc. and took up senior positions in the company’s management. For the first time, the holding company published its consolidated IFS financial statements and an Independent Auditor’s Report.

In 2010, JSC Atomredmetzoloto consolidated a controlling stake in Uranium One Inc. In December 2010, during the fourth annual Platts Global Energy Outlook Forum entitled “Clean Energy: Fact or Fiction?” ARMZ Uranium Holding Co. was rewarded for outstanding business development achievements.

In 2011, JSC Atomredmetzoloto acquired 100% of Australian publicly traded company Mantra Resources Limited, which owns the Mkuju River project in Tanzania.

In 2012, ARMZ Uranium Holding Co. purchased 99.5% of JSC First Ore-Mining Company’s shares.

In 2013, taking into consideration the situation on the world natural uranium market, ARMZ Uranium Holding Co. completed a transaction to acquire a 100% stake in Uranium One Inc. Under the terms of the agreement, all of Uranium One Inc. common shares, which JSC Atomredmetzoloto and its affiliates did not own at that moment, were purchased. In accordance with the decision made by ROSATOM State Atomic Energy Corporation, management of uranium assets located abroad was entrusted to Uranium One Holding N.V. Since December 2013, JSC Atomredmetzoloto has been in charge of the Russian uranium mining assets.

In 2014, a new business area development program was formed in JSC Atomredmetzoloto. Krasnokamensk industrial park, which includes projects both in the mining and other industries, was developed in the Trans-Baikal Territory: agreements were reached with Chinese partners for establishing joint ventures Cement plant, Coal-Diesel project on the basis of PJSC PIMCU.
An engineering centre was formed on the basis of JSC VNIPIpromtekhnologii. While keeping traditional competences in the field of uranium facilities’ design, the company is specialized on the construction of “turnkey” industrial facilities. Implementation of a new final product (yellow cake) drying facility in JSC Dalur was a pilot project. 

In 2015, ARMZ completed the project of creating a modern uranium mining enterprise in severe permafrost conditions being JSC Khiagda, where facilities of the first stage of the central production site construction were put into operation along with a sulfuric acid plant; the work to prepare new deposits Istochnoye and Vershinnoye of the Khiagda ore field for development was started.

A pilot plant for extracting scandium from productive solutions was launched at the JSC Dalur site. The development of the largest lead-zinc deposit Pavlovskoye on Yuzhny Island, Novaya Zemlya archipelago is ongoing.

In 2016 the plan for the extraction of strategic raw materials was implemented at 100% in the amount of 3.005 tons. The most significant achievement of the Company team at year-end 2016 was reaching of a breakeven operation level by PJSC PIMCU. The enterprise also received a positive opinion from FAI Glavgosexpertiza of Russia on the project to construct the Mine No. 6, the launch of which will ensure its further stable development.
JSC Khiagda in Buryatia commissioned the main production site and the related infrastructure facilities, which are necessary for the enterprise to reach the project capacity of 1.000 tons of uranium per year in 2019. As a result of all prime cost reduction measures, JSC Khiagda gained profit for the first time in its history.

The “Scandium” project implementation has been continued. ROSATOM approved a new project configuration with the transition to the production of high-purity scandium oxides and aluminum-scandium master alloys.

The key project of the Company to develop new businesses in the Arctic, namely, the Pavlovskoye deposit development on Novaya Zemlya archipelago in the Arkhangelsk region, received a qualitative continuation.
Following the results of the calculation of reserves, their total addition exceeded 20%.

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