On 30 March this year, the press conference was held at the National Press Center of Uzbekistan on the topic “JSC Almalyk MMC: results of 2022 and objectives set for 2023.”

The event, organized by the information service of the plant, was attended by Deputy Chairman of the Board of Almalyk MMC for Economics, Finance and Transformation Feruza Khamidova, Deputy Chief Engineer for Technology – Head of the Technical Department Abdukakhkhor Sainazarov, Acting Head of the Department of Social Facilities Kamol Umaraliev, as well as the representatives of the media.

The blackout that occurred in the energy system of Uzbekistan at the beginning of 2022 led to a shutdown of power supply from January 25 to 28, which negatively affected the production of semi-products. Thanks to promptly taken measures, the use of internal reserves, as well as power supply to the most important areas, uninterrupted production of saleable products was ensured, says Abdukahhor Sainazarov. In particular, forecasts for the production of copper cathode (148.5 thousand tons), copper wire, enamel wire, and copper sulfate were fulfilled 100%. The fulfillment and overfulfillment of production targets for precious and rare metals was also achieved. In particular, forecasts for the production of gold and silver were fulfilled by 100.3%, ammonium perrhenate – by 132.4%, selenium (34.5 tons), tellurium (2.8 tons) – by 100.0%, palladium powder – by 183.9%.

In 2022, 90.0 thousand tons of metal zinc were produced, the forecast was fulfilled at 100.0%. 111,111 tons of sulfuric acid were produced (fulfillment of the forecast – 107.8%), metal cadmium 478 tons (fulfillment of the forecast – 105.5%).

Taking into account the increase in the price of 1 kg of molybdenum on the world market from 22 to 70-100 US Dollars, this year a project is being implemented to increase the production capacity of this metal from 800 tons to 1,200 tons. In order to implement this task, work is underway to expand the workshop for the production of rare metals at the copper smelter. Currently, 2 new kilns are being built here in addition to the existing 4 kilns.

Along with this, it is planned to introduce into production the results of scientific research on the extraction of rare metals from waste solutions formed during the production of copper and zinc.

In 2023, the zinc plant plans to produce 92.0 thousand tons of metal zinc, 105.6 thousand tons of sulfuric acid, 470 tons of metal cadmium.

Our main task today is to eliminate the delays from the plan caused by the abnormal January frosts, mobilize reserve capabilities and achieve exceeding the set goals!

Based on the results of the financial and economic activities of Almalyk Mining and Metallurgical Complex for 2022, Feruza Khamidova gave detailed information to those present. In particular, income from the sale of finished products amounted to 30.5 trillion UZS, the business plan was completed by 108.2%.

Net profit for the reporting period amounted to 6.7 trillion UZS (forecast fulfillment – 114.6%). The profitability of production was 21.8%.

Despite the reduction in tax rates on subsoil use from 15% to 10% and on profit from 75% to 50% in 2022, 18.4 trillion UZS were paid to the state budget (2.6 trillion UZS more compared to the same period of the last year). Including, the dividend in the amount of 8.5 trillion UZS were paid.

It is worth noting that about 10% of the state budget comes from tax payments from the plant. AMMC ranks second among the top largest taxpayers in the country. At the same time, its share in state budget revenues increases from year to year.

Based on the instructions of President Shavkat Mirziyoyev during his visit on 22 December 2021 to large industrial enterprises and social facilities in the town of Almalyk in 2022, as a result of the implementation of measures at AMMC to reduce the production costs, it was possible to achieve cost savings in the amount of 418 billion UZS (3.8 percent).

During the reporting period, the plant exported products worth $947.5 million, fulfilling the forecast was 110.8%.

In addition, in 2022, the first container block train with copper concentrate from AMMC was sent to the port of Burgas, Bulgaria.

The team of Almalyk Mining and Metallurgical Complex is fulfilling all the priority tasks for 2023.

Despite the abnormal cold observed in January of this year in our country, based on the results of the first quarter, the forecast for the production of marketable products worth 6.8 trillion UZS is expected to be 100% fulfilled.

At the end of the first quarter, net profit will amount to 1.4 trillion UZS (fulfillment of the forecast – 100.1%). 2.6 trillion UZS will be allocated to the budget, the forecast in this direction will be fulfilled by 144.8%.

Also during the reporting period, products worth 174.4 million US dollars were sold for export, the forecast was fulfilled by 100.2%.

Within the framework of 4 projects of the investment program, 112.2 million US dollars will be spent, the forecast will be fulfilled at 119.0%.

It should be especially noted that thanks to the decisions of the President and the Government of the Republic of Uzbekistan on the development and reform of the plant, it is possible to enter international capital markets and independently attract direct foreign loans from international financial institutions and foreign banks.

In order to prepare AMMC for entering international stock markets in 2019, the plant hired the international audit company KPMG, one of the Big Four, as a consultant. Together with this company, the four-stage “Road Map” for 2021-2023 was developed, which reflects issues of corporate management of the plant, IT technologies, procurement management, industrial safety, energy management, environmental policy, etc. To date, most of these activities has already been completed.

Based on the international financial reporting standards (IFRS), the enterprise prepared reports for 2019-2021, the audit was carried out by the international company Ernst&Young. The accounting policies were updated in accordance with IFRS together with consultants.

The leading rating agency S&P Global Ratings assigned the Almalyk Mining and Metallurgical Complex a credit rating of “B+” and an outlook “Stable”, as well as the agency “Fitch Ratings” assigned a credit rating of “BB-” and an outlook “Stable”.

The growing attention of investors to the plant, as well as changing consumer requirements, necessitates the publication of reports based on a system of environmental, social and governance factors – “ESG” (Environment, Socials, Governance).

In this regard, in 2021, together with KPMG, a sustainability report (ESG) was prepared based on the results of 2020-2021.

The sustainable development report for 2022 is currently being prepared and will be published following an audit of the ‘Big Four’ company.

In addition, with the assistance of Pricewaterhousecoopers LLC, the work has begun to obtain an ESG rating, improve the ESG profile of the plant and introduce ESG principles into the management system, and a roadmap is being developed.

Together with Ernst&Young LLC, an audit is being conducted based on international financial reporting standards for 2022, which will ensure the receipt of an audit report.

Also, together with Pricewaterhousecoopers LLC, the diagnostics of business processes has begun as part of a project to improve operational efficiency, analysis, development, implementation of appropriate measures and advanced training of personnel at Almalyk MMC.

Based on the Resolution of the President of the Republic of Uzbekistan dated 24 March 2023 No. PP-102 “On additional measures to reduce state participation in the economy,” it is planned to sell 2% of the shares of Almalyk MMC. In accordance with the resolution, the company's shares will be sold according to the principle of “One share – one lot” on an electronic trading platform.

As experts noted, purchasing the shares of Almalyk MMC becomes a profitable decision. It is noteworthy that the shareholder will have the opportunity not only to receive attractive dividends (at least 30%), but also to participate in the management of this organization.

It is worth noting that Almalyk Mining and Metallurgical Complex pays great attention not only to the production, but also to the social sphere, in order to support which a number of practical works are carried out. K. Umaralieva told reporters about this.

In particular, in March 2022, with the sponsorship of the plant, a preschool educational organization with 120 places was built in the village of Shovgoz, Tashkent region. Funds in the amount of 5.7 billion UZS were spent on the construction of this facility.

In May, a new building of the “Bakhor” (Spring) hotel for 102 people was put into operation. 31.4 billion UZS were allocated for the construction of this facility. In July, a preschool educational organization with 290 places began its work after a major overhaul. 6.8 billion UZS were allocated for the repair of this facility.

In October, a sewing factory with 250 jobs was put into operation in the village of Chodak in the Namangan region. In the same month, the opening of the “Sinegorye” recreation area with 126 seats, located in the Tashkent region, took place.

The Almalyk Mining and Metallurgical Complex provided sponsorship for the restoration and repair of 19 houses in the “Toshlok” and “Istikbol” mahallas of the Buka district, which were damaged due to flooding caused by heavy rainfall in June 2022.

At the end of 2022, a new photovoltaic station with the capacity of 602 kW-h was put into operation, supplying electricity to the executive office building. This made it possible to reduce energy consumption.

AMMC also opened a leisure center for pensioners in the Tashkent region – the “Nuroniylar Maskani” complex, the construction of which AMMC provided sponsorship in the amount of 2 billion UZS.

Currently, with the sponsorship of AMMC, the reconstruction of the clinic and maternity complex at the Almalyk Medical Association is being carried out. The enterprise allocated a total of 23 billion UZS for the reconstruction of these facilities.

Along with this, as part of the Department of social facilities of AMMC there are 16 preschool educational organizations, 5 children's health camps, the “Metallurg Palace” of Culture, a sanatorium, the boarding house "Oltin Olma", the children's park "Bolajon", the water park "Dolphin", the hotel "Spring", the “Nuroniy” pensioners' house, the AMMC sports complex, the “Sinegorye” recreation area, the sports and technical club and other facilities.

To date, repair work is being carried out in preschool educational organization No. 33 with 280 places. It is planned to be put into operation on June 1 – the International Children's Day.

The enterprise’s team has begun the works to prepare 5 children’s health camps for the summer season (their total capacity is 1,600 places), located in different regions of our country.

The AMMC sports complex, where various sports competitions of national and international scale are held, is currently undergoing renovation works. This complex will resume its operation this summer season.

Mass media representatives received detailed answers to their questions from specialists.