Implementation of JSC PIMCU programme for reaching break-even operation and cooperation with JSC MMC Norilsk Nickel discussed during working trip to Trans-Baikal Territory

Vladimir Verkhovtsev, Chief Executive Officer of Rosatom State Nuclear Energy Corporation’s mining arm, conducted negotiations over implementation of an Agreement on Socio-Economic Development of the Trans-Baikal Territory. The document was signed by Sergey Kirienko, Director General of Rosatom State Nuclear Energy Corporation, and Vladimir Potanin, Director General of JSC MMC Norilsk Nickel April 16, 2014. In particular, an investment project to construct the Bystrinsky Mining and Processing Plant, undertaken by Norilsk Nickel, involves attracting human resources of JSC PIMCU; it is also being investigated whether it is feasible to use the company’s machinery and repair capacities and to supply, under mutually agreed terms, coal from the Urtuiskoye Field.

“Today, more than 100 specialists with various professional background from Krasnokamensk are working on the Mining and Processing Plant’s construction site. Personnel management experts discussed forward-looking programmes for professional development and retraining, including at the JSC PIMCU Education Facility and the Krasnokamensk Industrial and Technological Vocational School. Equipment manufacture and repair at our Machinery and Repair Plant is also practicable, along with other lines of activity under the Agreement. During the next-stage negotiations, a meeting of directors general of JSC PIMCU and the Bystrinsky Mining and Processing Plant is to be held,” said Vladimir Verkhovtsev following the results of a trip to the Bystrinsky Plant.

The production diversification programme is one of the most important parts of JSC PIMCU’s efforts to reach break-even operation under conditions of uranium price drop on the global market. In 2014–2015, the company is to decrease its costs by 3 billion roubles, i.e. by 1.5 billion roubles annually. Implementation status of events aimed at reaching the target indicators were also discussed at the meetings in Krasnokamensk.

Cost reduction activities were presented by all JSC PIMCU’s divisions. Uttermost attention was paid to new technology such as block in-situ leaching, X-ray radiometrical enrichment, ore-sorting of non-commercial dumps, ore flows optimization, as well as implementing an integrated technology for processing of low-grade ores. Along all these and many other lines of activity, pilot industrial operations have already been carried out and demonstrated good results.

New technology implementation combined with reduced investment expenditures and purchase volumes enabled a minimum optimization of the staffing level. According to the industrial union’s HR department, only 178 employees of JSC PIMCU were made redundant.

Furthermore, the meetings involved discussing creation of new city enterprises, whose product sales will make it possible to increase the industrial union’s revenues and reduce costs associated with expendable materials. JSC PIMCU and Beijing Triumph International Engineering Co., Ltd. (BTIEC), China, signed an Agreement on Development of Tentative Feasibility Study for the 1,000 tons per day cement factory construction project. Preparations for the implementation of projects to construct facilities for emulsion explosives production, pyrite cinder treatment, fuel generation and manganese concentrates processing are underway.

“At the same time, it is necessary to understand that the uranium chain remains of the primary importance for us. We do not replace mining of the strategic raw material, but reduce uranium production costs, in particular, by increasing revenues along other lines of activity,” emphasized Vladimir Verkhovtsev.

The Chief Executive Officer of Rosatom State Nuclear Energy Corporation’s mining arm held a separate meeting with foremen of underground teams. At this meeting, such issues were discussed as the best practices of organization of workflows involving underground mining equipment repair; development of the new Glubinnoye Deposit; construction of a station at the 6th level of Mine No. 8 and etc.

“The works to reach break-even operation are rather complicated. But now I have no doubts that we will succeed. Our joint work with PIMCU showed that the entire workforce, from the industrial union’s management and departments’ heads to workers, understand the task and employ all capacities required to attain it. We need time, patience and persistence,” summarized Director General of ARMZ Uranium Holding Co.