Development Strategy

Mission Statement

Our Mission

Ensure the competitiveness of long-term raw material supplies to boost Russian technologies, particularly, in the nuclear industry.

Our Vision

We are a national uranium producer who guarantees that primary needs of ROSATOM State Atomic Energy Corporation as our principal shareholder will be satisfied with competitive pricing and free from geopolitical risks.

Our Basic Competitive Advantages:

• both natural and technogenic raw material resources with comprehensive processing and cost-effective extraction of profitable components;
• high-tech manufacturing assets, cutting-edge R&D capacity and highly-skilled team who boast years of experience in the mining industry;
• full range of expertise in exploration and exploitation lifecycle management, including in tough climatic conditions.

Corporate Values of JSC Atomredmetzoloto

Strategic Vision and Goals

As the Mining Division of ROSATOM State Atomic Energy Corporation, we share ROSATOM’s values.

ARMZ sees safety as its highest priority and, while doing our work, we are primarily committed to ensuring a hundred-percent safety of people and environment.

Our Contribution to ROSATOM’s Strategic Goals

In 2018, ARMZ as the Mining Division of ROSATOM State Atomic Energy Corporation continued to make a significant contribution to strengthening the market position of and secure 100% satisfaction raw material supplies to the Russian nuclear industry.

We are actively expanding uranium mining operations through the most effective method of in-situ leaching (ISL). ISL uranium production at Khiagda, JSC and Dalur, JSC increased from 44% to 50% of ARMZ total production in 2018. We did not stop and continued to improve our performance. Indeed, the specific monetary cost of ISL uranium production (Khiagda, JSC and Dalur, JSC) had been reduced by 5% by the year end of 2018.

The uranium assets were expanded in line with further efforts for developing new uranium deposits. In 2018, Khiagda, JSC made preparations to be able to develop the Kolichikan and Dybryn deposits and piloted the Smart Mine intelligent extraction management system at the Istochny deposit as part of the Digitalization business line to increase the efficiency of uranium extraction and reduce production costs, while Dalur, JSC was engaged in surveying at the Dobrovolny field.

PIMCU, PJSC as ARMZ major production site fulfilled the Mine No.6 infrastructure program for 2018.

ARMZ Uranium Holding Co. continued to develop its new business projects throughout the year of 2018 to provide the first commercial supplies of scandium oxide produced by Dalur, JSC. It also continued to actively elaborate partnership projects in the mining sector (e.g., the Pavlovskoye, Lithium, Titanium, etc.) and promising business initiatives to create conditions for the further sustainable growth of the Company’s business through consistent and persistent efforts.

Our Strategic Goals

ARMZ is implementing its long-term strategy with a focus on the underlying strategic goals and priorities, which have been designated by ROSATOM State Atomic Energy Corporation.

The key paths for the uranium mining growth in Russia continue to include:

• construction and commissioning of PIMCU’s Mine No.6 in 2023 to replace uranium extracted at existing mines; and
• further increase in cost-effective and environmentally sound extraction of uranium through the method of in-situ leaching (Khiagda, JSC and Dalur, JSC).

Uranium production will continue to be ARMZ key area of operations, while the efforts for the further growth of our existing enterprises are to be enforced with some new projects in the mining industry and related sectors to ensure the widening of the Company’s business and to make it more stable both socially and financially.

2019 and Medium-Term & Long-Term Plans

Better efficiency of uranium mining, including through the development of new fields, and active expansion of new business areas continue to be ARMZ key medium-term priority.

PIMCU, PJSC continues to build new Mine No. 6 at the Argunskoye and Zherlovoye uranium deposits and its commissioning would compensate for uranium out of extraction due to the preservation of the existing mines as soon as their active resources are extracted, and also ensure competitive cost price of uranium.

Khiagda, JSC and Dalur, JSC will continue the in-situ leaching operations to ensure a balanced increase in uranium production. Khiagda, JSC has a significant potential for the further growth of competitive uranium production and will continue to develop the Istochny, Vershinny and other deposits of the Khiagda ore field, whereas the goals of Dalur, JSC include the maintenance of the current level of uranium production and the Dobrovolny field development.

As for the Elkon, being a promising uranium project (Elkonsky Mining and Metallurgy Plant, CJSC), we will continue to assess its prospects and develop technical solutions. It is expected to be put into operation after 2035 as soon as the demand for natural uranium is recovered and market prices increase to provide cost-efficiency as required.

We will expand some new lines of business and further widen the Company’s product portfolio. ARMZ service providing enterprises will continue to promote their competency based services in new markets, whereas the implementation of mining partnerships and processing of strategic raw materials by other ROSATOM’s divisions and external partners will make it possible for ARMZ to contribute significantly to higher revenues generated by new businesses of ROSATOM State Atomic Energy Corporation.