About Company

11 June 2018

Development Strategy

Mission and Values of the Company

The mission of JSC Atomredmetzoloto is to provide competitiveness of long-term raw material deliveries for the development of Russian technologies, above all in nuclear power engineering.

The ARMZ business vision is based on the status of a national producer guaranteeing to meet the requirements of Rosatom State Corporation in Russian uranium at a competitive prime cost and without geopolitical risks.

The basic competitive advantages of the Company include:

  • resource base of natural and technogenic origin with the possibility of cost-effective extraction of valuable components;
  • high-tech manufacturing assets, modern scientific potential and qualified team with many years of experience in the mining industry;
  • full range of competencies for managing the lifecycle of exploration and operation of deposits, including in climatic conditions.

Corporate Values of JSC Atomredmetzoloto


Corporate Values

Implementation in JSC Atomredmetzoloto

“One Step Ahead”

  • maximize potential of markets where we operate;
  • develop state-of-the-art Russian and global practices and technologies in geological exploration, production, corporate governance and social policy;
  • implementation of business diversification projects assuring its scope and stability growth.

“Responsibility for result”

  • trouble-free and stable provision of Russian and foreign consumers with products meeting quality standards;
  • socially responsible business, attention to the development of areas of operation.


  • implementation of principles of Rosatom Production System (RPS) at a production facility and daily operations;
  • optimum management system assuring the balance of initiative and control, responsibility and resources;
  • transparent procurement system raising expenditure efficiency;
  • rational and responsible use of production and financial resources;

“One team”

  • continuous advanced training, motivation and personnel social security enhancement;
  • organization of cultural, sports and charitable activities.


  • building long-term trust relationships with customers, suppliers and local communities;
  • openness for state authorities, investment and industrial communities, partners, employees and other stakeholders.


  • ensure industrial and labour safety guaranteeing preservation of employee health and environmental welfare;
  • observe technical standards during the mining and processing of natural uranium, including standards for nuclear and radiation safety;
  • comply with regulatory requirements and raise environmental production safety.


 Table. Main Strategy Directions and Their Implementation at the Holding Company’s Enterprises

Main Strategy Directions


Implementation Terms

Balanced increase in uranium production by downhole in-situ leaching

JSC Dalur and JSC Khiagda


Maintaining of uranium mining volumes by underground method (upon conservation of the existing mines due to mining of the active reserves)              

PJSC PIMCU: construction of a new Mine No. 6


Provision of a portfolio of orders from ARMZ enterprises and external customers

JSC RUSBURMASH: drilling and geological survey

JSC VNIPIpromtekhnologii: integrated engineering services


Ensuring of competitive production cost of products and services

All enterprises of the Holding Company: increased efficiency of processes and labor efficiency, cost optimization


Development of new business areas through the implementation of projects in the mining and related industries providing an increase in the depth of development of the mineral raw materials base and entry with a competitive offer to the Russian and international markets

PJSC PIMCU: processing of Pyrite Cinders project;

JSC Dalur: Scandium project;

JSC FMC: Pavlovskoye project.




Natural Uranium Market Overview and Outlook    

Overview of Natural Uranium Market in 2016

Global uranium demand and supply

As of 2016, the volume of the world uranium market is estimated at 71–74 thousand tonnes taking into account the reactor needs of nuclear power plants and the formation of commercial and strategic reserves not intended for current consumption. Herewith, the extraction of natural uranium in the world in 2016 was about 62 thousand tonnes. The rest of the supply volume was provided by the uranium extracted and processed earlier (secondary sources).

The price environment in the uranium market remained unstable. During most of 2016, spot prices demonstrated negative dynamics caused by the demand volatility.


Uranium Market Outlook

Global Nuclear Power Industry Development Outlook

As of 2016, the nuclear power generation is ranked fourth (11 %) in the global power industry, after coal (41 %), gas (20 %) and hydropower (16 %) industries.

Consequences of the accident at Fukushima-1 NPP continue to affect the nuclear energy development on a global scale and the formation of attitude towards it in many countries. For example, in 2011–2013, Japan suspended the operation of all its nuclear power plants. At year-end 2016, only three units were re-launched being two units at Sendai NPP and one unit at Ikata NPP.

At the same time, nuclear generation remains one of the basic industries meeting all the requirements in the field of power supply safety, reliability and efficiency. Its contribution to improving the environmental situation and preventing climate change also deserves high evaluation. The greatest activity in the development of nuclear power is shown by China (5 out of 10 new NPP units commissioned in 2016). Commissioning of one new NPP unit in the USA for the first time in 20 years shall also be noted.


Global Natural Uranium Market Outlook

In the upcoming years, the global market situation will remain unstable and mostly unfavorable for the uranium producers. Its improvement and restoration of the uranium prices are forecast for the mid term (2019–2020) under the influence of the following fundamental factors:

  • increase in demand as the NPPs in Japan are restarted and NPP under construction in China, India, the Republic of Korea and other countries, most of which do not have a prepared uranium raw materials base, are commissioned;
  • reduction in the uranium supply associated with intensive development of the raw materials base of the existing deposits, duration (up to 10 years) and cost of developing new deposits;
  • reduction of involvement of any secondary sources as they use their liquidity part;
  • activation of long-term contracting (regarding uranium supplies planned by 2025).

Accelerated growth in uranium demand due to the continued active construction of new nuclear power plants is expected in the long run. The launch of prospective projects with a high prime cost will be necessary to cover such growth and replace the outflowing production volumes at the existing deposits. In combination with the increased costs at the operating enterprises, this will create the prerequisites for a steady increase in market prices since the mid-2020s. By 2030, global demand for uranium can reach 85 thousand tonnes.

Natural uranium production will grow in line with the demand dynamics. The full potential for increasing production by 2030 is 89 thousand tonnes of uranium. Thus, its deficit is not expected even with a decrease in supplies from secondary sources.


Long-Term Strategy and Current Status of the Company

In the reporting year, ARMZ enterprises made a significant contribution to strengthening the competitiveness of the Russian nuclear industry and reliable raw materials supply for the portfolio of orders formed. The work on increasing efficiency continued: in 2016, the specific single cost of uranium was reduced by 2 % (throughout the Holding Company in general, in comparable prices). PJSC PIMCU, the largest Russian enterprise, reached the break-even level for the first time in 6 years (net profit of RUB 14 million). The financial result of ARMZ in general was significantly improved. Successful use of new business opportunities is confirmed by the overachievement of the indicators planned for new products. These results are achieved due to the effective use of production and technological competencies formed in the Company loop and the dedication of its team.


Strategic objectives of the Company

When implementing a long-term strategy, the Company relies not on the scale, but on the quality of uranium assets. This approach is complemented by the system work on cost optimization, as well as on search and implementation of new design and technical solutions, which allows ensuring the uranium business development under any market conditions.

The main strategic objectives in the field of uranium mining development in Russia are as follows:

  • continuation of the restructuring of uranium production at PJSC PIMCU (with the transition to the construction of new facilities of Mine No. 6, the launch of which will support the uranium production volumes upon decommissioning of the existing mines);
  • balanced increase of cost-effective uranium production at JSC Dalur and JSC Khiagda within the reaching of their full capacity.

Necessary reserves for solving these issues have already been formed. In 2016, the principal scope of works on designing Mine No. 6 on the basis of Argunskoye and Zherlovoye deposits (PJSC PIMCU) was completed, the design documentation passed the state expert review successfully.

Formation of the production and technological infrastructure was completed at the site of JSC Khiagda in 2016. Moreover, physical launch of the production complex and auxiliary facilities at the Istochnoye deposit was carried out. These activities are implemented with the aim of bringing the enterprise to its designed capacity (1,000 tonnes of uranium per year).



New large-scale projects, including Elkon strategic project, are planned to be introduced in the long term (approximately in 2030), at the active market growth stage. In the specified period, an increase in demand and prices for uranium is expected, which will ensure the cost-effective implementation of such projects.

Until 2030, the main activity of JSC Atomredmetzoloto will remain uranium production. Development of uranium assets will be combined with the implementation of diversification projects in the mining and related industries aimed at expanding the scope of the Company’s business, as well as at the dynamic social and economic development of the areas of its operation.


Plans for 2017, Long-Term and Mid-Term Plans

In 2016, ARMZ enterprises implemented the production program in full. In the future, the volume of production is planned to be maintained at the level of about 3 thousand tonnes per year (depending on the dynamics of the industry needs in uranium raw materials).

Unconditional priorities of the Company remain ensuring the uranium business efficiency, including through the development of new deposits, and active implementation of diversification projects. PJSC PIMCU will complete the restructuring of the uranium chain with the transition to the construction of a new mine based on Argunskoye and Zherlovoye deposits, which account for about 40 % of the mineral raw materials base of the enterprise. Commissioning of Mine No. 6 is scheduled for 2022. Its operation will not only keep the infrastructure and potential of the enterprise, but also ensure its cost-effective operation over a long period of time.

Increase of production is planned to be continued at ISL plants of JSC Dalur and JSC Khiagda. JSC Khiagda, while having a significant potential for the development of effective uranium mining, plans to keep up the high rates of development of the new deposits of the Khiagdinskoye ore field – Istochnoye, Vershinnoye and others. The objective of the enterprise is to reach the designed capacity (1,000 tonnes of uranium per year) in 2019 with the possibility of increasing it in the long term. The development of a promising uranium deposit Dobrovolnoye was determined as priority of JSC Dalur development.

Within the framework of the diversification program, further expansion of the Company’s product portfolio is provided. In 2017, it is planned to start the production of scandium products (at the site of JSC Dalur), in the future – the production of products of processing pyrite cinders, as well as other products demanded in the Russian and international markets. Service assets of ARMZ are aimed at promoting services based on the existing competencies in the new markets.

Business Diversification

The development of new business areas remains one of the priorities of the ARMZ strategy. Key diversification objectives are as follows:

  • expansion of the product portfolio in order to minimize market risks;
  • development of existing enterprises through the implementation of projects ensuring integrated use of their competencies, infrastructure and raw materials base;
  • growth in business scale and profitability.

The basic directions of the ARMZ business diversification are determined on the basis of the approach approved by Rosatom State Corporation. In accordance with this approach, a portfolio of projects diversified by product, scale and geography has been formed. Project portfolio management is carried out according to the logic of maximizing economic results and synergies for the core business while minimizing project risks.


Fig. Product Portfolio of Existing and Emerging Businesses of JSC Atomredmetzoloto

Development of projects in mining and related industries is carried out as part of the comprehensive program in three areas:

  • increasing the depth of processing of the existing mineral resource base and industrial waste (“Scandium”, “Recycling of pyrite cinders”, projects);
  • development of areas with a special regional status (Pavlovskoye project);
  • business initiatives to develop the production of strategic metals and innovative products based thereon (under elaboration).

The interest toward the development of these areas is related to the fact that ARMZ applies modern technology for extracting useful components from the existing sources of raw materials or opportunities for their development, as well as to the necessary admittance and permits for working in restricted (regime) special status territories.

In 2016, the development of technology for the associated scandium extraction was completed and the construction of a pilot plant was launched in terms of the Scandium project. In September 2016, recognition of the scandium reserves of the Dalmatovskoye deposit was ensured, which makes it possible to extract it with the right to commercial sale. In 2017, it is planned to start the production of high-purity scandium oxides with the subsequent creation of the production of aluminum-scandium master alloys.

In 2016, economic evaluation of the technology for processing man-made waste of sulfuric acid production accumulated at the site of PJSC PIMCU was carried out within the project “Processing of Pyrite Cinders”. Based on the evaluation results, the profitability of their non-waste processing was confirmed (with the extraction of gold, non-ferrous metals and leaching cakes for the cement industry). In 2017, it is planned to proceed with the design and subsequent construction of a pilot plant with its launch in 2019.

The largest of the diversification projects implemented by ARMZ is the development project for the Pavlovskoye deposit in the Arctic zone of Russia (Novaya Zemlya archipelago) received qualitative continuation in 2016. Based on the results of the examination of the permanent exploration conditions FS and the calculation of reserves, recognition of reserves of B+C1+C2 categories in the amount of 2.49 million tonnes of zinc, 0.55 million tonnes of lead and 1,195 tonnes of silver was ensured. The total increase in reserves exceeded 20 %. Within the first stage of engineering surveys (field season 2016), a series of surveys (engineering, geological, geodetic, etc.) was carried out and a large-tonnage sample was sampled for technological ore testing. In 2017, it is planned to continue the deposit operations according to the approved plans.

Search and implementation of promising projects involving the use of infrastructure and material and technical base of the operating enterprises in the format of industrial partnership remain an important direction of the diversification program. Their elaboration is carried out at the site of PJSC PIMCU in Krasnokamensk, which is provided with transport and energy infrastructure and has the necessary personnel and production potential. These projects provide for the development of basic industries ensuring deep processing of raw materials, as well as production of products with high added value. Implementation thereof is planned as a Priority Social and Economic Development Area (PSEDA) created in 2016. In the future, this will provide PJSC PIMCU and ARMZ with additional revenue and efficient use of infrastructure.

In 2016, ARMZ continued its search for potentially interesting projects and business initiatives in Russia. Such initiatives feature the development of production of strategic metals and innovative products based thereon. Currently, this business initiative is under elaboration; its target parameters will be determined taking into account the results of the evaluation of prospective assets, as well as the availability of current and forecast demands for the respective products from the Russian nuclear enterprises.

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