Executive summary following the results of JSC “Almalyk MMC” of 2017

The Chairman of the Board of JSC "Almalyk MMC" – Farmanov Alexander Kasymovich.

Fulfilling the key priorities of the program of socio-economic development the staff of JSC "Almalyk MMC" for 2017 provided the commercial output:

- in current prices – 100,8 %,

- in comparable prices – 101,0 %.

The rate of growth of commercial output in comparable prices to the corresponding period in 2016 amounted to 104.1 %.

The release of copper products amounted to 103.2 %, including that from own raw materials 100,0 %, metal zinc - 110.9 %, including that from own raw materials - 102.2%, sulfuric acid - 112.6 %, trioxide molybdenum - 110,5 %, trioxide tungsten - 129.3 percent, refined gold - 100.1 % and refined silver - 100.3 %.

For 2017 the products were sold for export - 110.6 %.

Through stock trading of JSC "UzRTSB" for 2017, the company sold copper products – 101,7%, metal zinc – 100,0%.

In order to saturate the domestic market, the plant produced consumer goods 136,2 % of the target, the growth rate made up 124,9 %.

According to the decree of the President of the Republic of Uzbekistan , No. PP-2697 dated 23.12.2016 JSC "Almalyk MMC" is implementing 18 projects with a total capital investments of 810,9 billion soums.

The development for 2017 was 823,4 billion soums or 101,5 % to the forecast.

Disbursement was made as follows:

(mln. UZS)

Name Prognosis Actually % of fulfilled 
1 Construction of the underground mine in "Simarchuk" site on the basis of the operating field "Kyzyl Alma" 33769,0 33772,2 100,0
2 Construction of cement plant in Sherabad district of Surkhandarya region 284086,0 293398,5 103,3
Organization of production of door locks and hinges on the territory of Syrdarya branch of the free economic zone "Djizak" 9953,0 3849,7 38,7
Development of “Yoshlik-I” field, Tashkent region 355925,1 370653,4 104,1
Organization of zinc oxide (zinc white) production in Tashkent region 6042,9 4824,5 79,8
6 Expansion of production capacity for the extraction and processing of raw materials (Kalmakyr, Sary-Cheku, OPJT, UAT,MOF) 47276,6 47501,6 100,5
7 Organization of production of handles for faucets on the territory of Syrdarya branch of the free economic zone "Djizak" 5331,9 5331,9 100,0
8 Organization of production of brassy fittings on the territory of Syrdarya branch of the free economic zone «Djizak» 7820,2 714,3 9,1
9 Organization of production faucets with zink body on the territory of Syrdarya branch of the free economic zone «Djizak» 71,1    
10 Construction of lead plant 355,5 427,7 120,3
11 Organization of production of finished products of rare metals (tungsten carbide products, drilling insert bits, etc.) Chirchik city 3554,6 3555,0 100,0
12
Organization of production of 70 units of assemblies for the production of coal briquettes (Almalyk city) 4 265,6 3316,0 77,7
13  Technical re-equipment of compressor station on the copper plant 12192,4 15519,0 127,3
14 Reconstruction of the site for filtration and drying of copper and gold-containing concentrates in Tashkent region 8353,4 8468,2 101,4
15 Expansion of production of high temperature ceramic products, Chirchik city. 1777,3 1788,7 100,6
16 Reconstruction and re-equipment of hydrometallurgical plant for the production of molybdenum salts from molybdenum concentrate in Tashkent region. 1777,3 1788,7 100,7
17 Acquisition of equipment instead of the worn-out equipment 28437,0 28453,2 100,1
 

TOTAL

810 988,8 823 363,0 101,5

According to the decree of the President of the Republic of Uzbekistan No. PP-2698 dated 26.12.2016 "On measures for further implementation of perspective projects of localization of production of finished goods, components and materials for 2017-2019", JSC "Almalyk MMC" is implementing 29 projects totaling 17.6 billion soums.

For 2017 the localized products were produced for the amount of 22.3 billion soums or of 127.0 % of the forecast one.

According to the decree of the President of the Republic of Uzbekistan No. PP-2298 dated от 11.02.2015 “On the program of localization of production of ready products, components and materials for 2015-2019" the implementation of target parameters of reduction of import is provided due to the localization of production and expansion of inter-sector industrial cooperation for 2017 for the amount of 22.6 mln. USD.

For 2017 the follow-up was 23.9 million USD or 106.1 % of the forecast one.

JSC "Almalyk MMC" at the International industrial fair and Cooperation stock exchange signed 172 agreements for the supply of spare parts and components for a total amount of 227,9 billion soums.

For 2017 the components and spare parts were purchased for the amount of 227,9 billion soums or 100,0 % to the forecast. By the import the goods and material values for 77.3 million USD were purchased.

The complex of organizational and technical measures was developed to reduce the cost of production for 2017, providing the reduction of production costs by 6.8 %.

The expected result from the implementation of measures on the reduction of cost of production for 2017 amounted to 6.9 % versus 6.8% for the assignment.

 

According to the decree of the President of the Republic of Uzbekistan No. PP-2692 dated 22.12.2016 "On additional measures for the accelerated modernization of worn and obsolete equipment and reduction of production costs of industry enterprises" in 2017 211 units of technological equipment should be replaced. For the first of 2017 175 units of equipment were replaced for the amount of 24.7 million USD.

The plant took measures to improve the management, strengthen economic and financial situation and implementation of monitoring to reduce accounts receivable and accounts payable.

Expected receivables as at 01.01.2018 is 345.0 billion soums, without the formation of arrears, accounts payable – 430,5 billion soums, including arrears of 7.8 billion soums.

There are no debts to the budget and on the salary.

JSC "Almalyk MMC" developed and approved measures to reduce the fuel and energy resources for 2017, due to which the expected savings of fuel and energy resources for 2017 were:

- electricity – 153,4 million kW/h;

- fuel – 42.4 million m3.

Saving of fuel and energy resources amounted to the total amount of 41,2 billion soums.

In order to improve the system of corporate management in JSC "Almalyk MMC" in accordance with the issued decree of the President of the Republic of Uzbekistan in 2017:

In order to comply with the recommendations and the Corporate Management Code approved at the meeting of the Commission on the increase of efficiency of activity of joint-stock companies and improvement of the corporate management system No. 9 dated 31.12.2015, JSC "Almalyk MMC" conducted a tender procedure for the evaluation of the corporate management system following the results of 2016. The announcement was placed in the mass media (in the publication of Business Daily Exchange No. 32(2203) dated 21.03.2017, in the Integrated portal for corporate information www.openinfo.uz, the official website of the Stock exchange "Toshkent" www.uzse.uz and JSC "Almalyk MMC" www.agmk.uz.).

Protocol decision of the Supervisory Board of JSC "Almalyk MMC" the decision was made on selecting the independent Audit organization “Konsaudit” LLC.

In May of this year the assessment was made. According to its results the corporate management system of JSC "Almalyk MMC" was recognized as having the high score on the questionnaire of evaluation of the corporate management system.

The results of the evaluation were discussed on 29 June, 2017 at the meeting of the Supervisory Board at the next regular General meeting of shareholders of JSC "Almalyk MMC" at the end of 2016.

12 specialists of the relevant services have improved their knowledge and skills in training courses "Corporate management: principles, mechanisms and implementation" and "HR-management" organized by Scientific-educational center of corporate management.

In accordance with the decree of the Cabinet of Ministers of the Republic of Uzbekistan No. 512-f dated May 7, 2017 the candidacies of four specialists of JSC "Almalyk MMC" were presented as participants in training courses on modern methods of corporate management organized by the Scientific-educational center of corporate management and the European school of management and technology (Germany) with the possible completion of a practical internships in leading German companies, which have successfully implemented and widely applying best practices in the field of corporate management and modern management.

In order to further improve the management system of Almalyk Mining and Metallurgical Joint-Stock Company and to ensure on this basis an increase of production efficiency, expansion of the mineral resource base and sustainable development of production capacities, an increase of ore extraction, production of non-ferrous, precious and rare metals, as well as other competitive products that enjoy stable demand in the domestic and external markets, introduction of modern methods of corporate governance on September 15, 2017 the President of the Republic of Uzbekistan adopted Resolution "On measures to further improve the management system of Almalyk Mining and Metallurgical Joint-Stock Company (No.PP-3280 dated September 15, 2012), which was adopted by Almalyk GMC for implicit execution.

In accordance with the decree of the Cabinet of Ministers of the Republic of Uzbekistan No.207 dated 28.07.2015 "On the introduction of criteria for evaluation of efficiency of activity of joint-stock companies and other economic entities with a government stake" in accordance with the Resolution "On the application of key performance indicators of JSC "Almalyk MMC" approved by the Supervisory Board of JSC “Almalyk MMC” following the results of 2016 assessment was made under the criteria of efficiency of activity of the plant. Integral coefficient of efficiency (ICE) JSC "Almalyk MMC" following the results of the I half of 2017 amounted to 470,4 % (the efficiency of the Executive body activity is recognized high – if ICE value exceeds 100 percent).

According to the Program on the creation of new jobs for 2017 the creation of 252 new jobs was planned, including 192 jobs on the development of the industry and the 60 jobs under the investment program.

For 816 new jobs were created, including 216 on the development of the industry and 597 jobs - under the investment program, as well as 3 jobs – on the development of cottage industry.

In accordance with the program for technical training of workers 4893 people were trained to improve the skills, 1274 passed re-training and mastering the second profession, 1726 people – improved qualification and the managers and specialists were retrained, including those with day release.

163 people study on a paying contract by contract basis, including 146 students studying at the higher educational institutions of the Russian Federation, 111 students at the correspondence and evening departments of Almalyk TashSTU and 20 students at the part-time department of NavSMI.

The graduate school SRTU of Moscow Institute of Steel and Alloys" 13 people are trained in absentia. Costs of contracts amounted to 2237 million soums.

JSC "Almalyk MMC" performed a complex of measures on cooperation with seven professional colleges assigned to the plant, on strengthening the cooperative ties for the organization of practical training of graduates. In accordance with the activities, the structural subdivisions of the plant provide sponsorship for equipping the workshops and laboratories.

For 2017 in the subdivisions of the plant the work experience internship was passed by 2349 students of professional colleges, including work experience internship - 1078 students of the 2nd course and externship - 1271 students of the 3rd course.

For 2017 2562 College graduates and 853 Universities graduates were employed.

Information on implementation of priority projects for further development and introduction of modern information and communication systems and software products in the real sectors of economy according to the Resolution of the President of the Republic of Uzbekistan "On measures for further development and introduction of information and communication technologies in the real sector of the economy for 2016-2018 years" No.PP-2569 dated August 1, 2016 for Almalyk Mining and Metallurgical Joint-Stock Company:

  1. Implementation of "Introduction of an information system for managing, forming and storing an electronic archive of official information in NGOs" Project has been completed. To organize the system for managing, forming and storing an electronic archive of NGO’s proprietary information on production of rare metals and hard alloys an NGO has installed a data storage server from the previously released servers of the data processing center of AMMC. The system operates in a normal mode.        
  2. The works on implementation of Project "Introduction of the access control system" (Project of “Uzbek COMBINE OF REFRACTORY AND HEAT-RESISTANT METALS” JSC) has been completed. The system is put into commercial operation.
  3. The works on implementation of "Introduction of the information system on computerization of operational, engineering and manufacturing activities" Project is fully implemented. The system is put into commercial operation. A system of an operational daily summary has been developed, computer equipment was purchased for the total amount of UZS 248 million.

On the JSC "Almalyk MMC" the official web site was updated, the materials are published in 3 languages (Uzbek, Russian, English). According to the approved schedule of examination of official web-sites of state and economic management bodies, local state authorities, from 14 to 20 June the examination of official web site of JSC "Almalyk MMC" was conducted. According to the results of the examination 2 threats were identified (medium 1, low 1). The identified threats have been eliminated.

The Modernization of the existing Corporate information system of financial accounting is implemented. Interface for adjustment of initial information about the flow of funds has been developed for input and adjusting the initial balances of the Bank accounts and the interface for getting reports for accounting of money receipts of the JSC "Almalyk MMC".

The information system "Organization of cargo operations on railway tracks of JSC "Almalyk MMC"” has been developed and put into operation. The system is designed for operational management of loading and unloading operations on railway tracks of JSC "Almalyk MMC" and for analysis of the quality of the cargo operations.

78 people have been trained in the Minimum computer literacy in the field of ICT.

In the August a forum was organized on the ICT where the issues were discussed on the development of information technologies and information security at JSC "Almalyk MMC".

Work is underway to upgrade the existing wireless data network. Completion of works is scheduled for the first quarter of 2018. The modernization will increase the network bandwidth of data transmission between the remote units located in remote mountain areas up to 60 Mbps.

JSC "Almalyk MMC" has developed and approved 32 measures for the amount of 6.8 billion soums to implement the State program " Year of dialogue with the people and human interests " in five priority areas of development. For 2017 22 measures were implemented to 7.8 billion soums.

In order to meet the needs of plant workers and the saturation of the town market with meat and dairy and agricultural products for 2017 the following was produced:

agricultural products – 4058,5 t;

meat products – 101,9 t;

dairy products – 1997,0 t;

fruit – 117,1.

Within the whole period the work was carried out to implement the system of reporting and control of documents execution in a timely manner, the study of the progress of the execution of Laws, acts of the President of the Republic of Uzbekistan and Government decisions locally, according to the work plan of the plant, the protocols are drawn up with the execution of analytical statements.

In order to ensure timely execution of orders of higher authorities, improvement of executive discipline control system in the composition of the Executive Board of the JSC "Almalyk MMC" the service was created to monitor the implementation of instructions of the higher organizations (order No. 322 dated April 26, 2017) and the procedure was established for systematic and critical analysis of the Executive discipline status.

Regulations on the functional responsibilities of the Chairman of the Board, chief engineer and Board Deputies on the supervised areas of the Executive Board were developed and agreed by the Cabinet of Ministers of the Republic of Uzbekistan.

Pursuant to the decree of the President of the Republic of Uzbekistan No. PP-2881 dated April 11, 2017 "On personal responsibility of State advisers of the President of the Republic of Uzbekistan, heads of the Cabinet of Ministers and its complexes, state and economic management bodies, as well as khokimiyats at all levels for the efficient and effective execution of acts and instructions of the President of the Republic of Uzbekistan, as well as the strengthening of Executive discipline" and the Regulation on the procedure of taking measures of disciplinary sanctions to the officials of the Cabinet of Ministers, heads of state and economic management bodies, the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of areas, cities and districts approved by the decree of the Cabinet of Ministers No. 264 dated May 10, 2017 the Regulations "On procedure of taking measures for disciplinary sanctions to officials of the JSC "Almalyk MMC".

Systematic work is conducted on the critical analysis of the execution of their solutions, identifying shortages and developing specific remedial measures.

To ensure the open dialogue with citizens, careful consideration and solution of complaints at the plant the Service for control and coordination of work with the appeals of individuals and legal entities has been created. Daily acceptance has been arranged.

For 2017 3665 applications were received, including 1289 written, 1565 oral, 780 – through virtual reception and 31 via the Single Interactive State Services Portal. According to 161 applications the measures were taken, 3272 – were explained, 82 applications are being examined and 142 were rejected.

The nature of applications - financial support, employment, treatment, utilities, reinstatement, transfer to other subdivisions of the plant, as well as transport problems, etc.

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