CRONIMET press releases
Current press releases of the CRONIMET Group
The ZCMC GAG has successfully mastered the economic crises
The Zangezur Copper and Molybdenum Combine GAG (ZCMC) mine in Kajaran (Armenia), which is majority owned by the CRONIMET Group, Karlsruhe (Germany) has successfully mastered the economic crises. In October, when the economic crisis started, ZCMC was in the final phase of a large investment program for an amount of more than $200 million. Ore processing was increased from 8.5 million tons in 2005 - when the mine was acquired from the Armenian State - to app. 12 million tons in 2008.
After the startup of one of the world's largest ore grinding mills, it is now planned to increase the volume to app. 14 million tons in 2011.
Thanks to the financial support of the shareholders, it was possible to continue the mine operations in November and December 2008 as well as in January and February 2009, when the raw material prices were very low. During these months, it was possible to reduce the ore processing cost by app. 30%. The mine is now profitable again due to the cost reductions and the price increases for copper and lately also for molybdenum. This makes it possible to continue the planned investment program, which had to be interrupted for a few months. One of the main reasons for the continuation of the mine operation was the fact that the CRONIMET Group - despite the steel crisis - was able to continue to sell the Molybdenum Oxide and Ferro Molybdenum produced by the mine. The CRONIMET Group, which has a worldwide distribution network, sells now 50% of the production output in Asian countries, after the sales in Europe declined by the same percentage.
