Madneuli JSC

Infobox Company
company_name = JSC Madneuli (JSCM)
company_
company_type = Closed Joint-Stock Company
genre =
foundation = 1994
founder =
location_city = Tbilisi
location_country = flagicon|Georgia_(country) Georgia
key_people = Owner
Guela Akobia, Director General
industry = Mining
products = Gold
Silver
Copper
Molybdenum
revenue = USD$70.70 Million estimated maximum
net_income =
divisions =
homepage = [http://www.madneuli.ge www.madneuli.ge]

JSC Madneuli (JSCM) ( _ka. სააქციო საზოგადოება მადნეული, saak'ts'io sazogadoeba "madneuli"; სს მადნეული, ss "madneuli") is a mining company based in Tbilisi, Georgia. Established in 1994, Madneuli is currently involved in ore, copper, and gold mining and smelting. The company is a daughter affiliate and subsidiary of GeoProMining Ltd (former Stanton Equities). GeoProMining Group is an international group which invests in metals and mining industry worldwide.

History

JSC Madneuli -The leading mining company in Georgia contributing more than 10% of Georgian exports.Established in 1975 in Bolnisi region, Georgia.

Company’s rich history of mining has distinguished us as a respected precious metals producer in Georgia and post soviet region. While our past is impressive, we are determined to meet the challenges and opportunities for our future holds.. It has been claimed that the company netted $60 million U.S. dollars in the year of the privatization.

Financials

Financials for Madneuli are not readily available. Using Georgian export data for the year of 2005, the maximum revenues Madneuli could have generated are $34.7 million for gold and $36.4 million for copper suggesting a maximum total revenue of $70.70 million US dollars. Australian junior Bolnisi Gold, who worked the Bolnisi Mine in a joint venture with Madnueli in 2005 and had a 50% stake in the mine, reported a gross profit of $11.4 million US Dollars and positive cash flow from operating activities in the same period of $6.8 million.

Operations

Georgia

Madneuli has the open pit Bolnisi Mine in the Bolnisi district of the Kvemo Kartli region in southern Georgia. Western sources estimate Madneuli's assets in this mine to be 350,435 oz (10,908 kg) of gold. Silver, copper, and other minerals are also mined at that location. This asset has been worked for 30 years.

Armenia

In 2007 Madneuli purchased the Armenian company Golden Ore which had a 25-year permit to exploit the copper-molybdenum mine at Hankavan. [http://www.hetq.am/eng/economy/7224/ What Issue Does the Government Have with Madneuli?] Hetq Online, October 29, 2007, By Edik Baghdasaryan, Accessed Nov 3, 2007] Also, through the purchase of the Ararat Gold Recovery Company (AGRC) [http://www.hetq.am/eng/economy/7224/ What Issue Does the Government Have with Madneuli?] Heqt Online Oct 29, 2007 Edik Baghdasaryan] , on August 15, 2007, Madneuli now owns the Meghradzor mine in the Meghradzor region in the Abovyan province of Armenia, as well as the Ararat processing plant in the Ararat province of Armenia.

Alleged interest in Nagorno-Karabakh

Between August and October 2007, the website Mineweb a series of articles concerning the Madneuli’s acquisition of Zod goldmine in the Vardenis region in the Gegharkunik province in Armenia and partly in the de facto independent Republic of Nagorno-Karabakh, which sparked a significant controversy in the international press. The purchase price allegedly was $80 Million US dollars in cash plus assumption of all debts from Sterlite. The financing was alleged to be undertaken by the Russian financing company Industrial Investors. This mine is located in an area that is referred to as Kalbajar in Azerbaijan. Arif Iskandarov, Azerbaijan's minister of natural resources, called the alleged purchase "unlawful". [http://news.trendaz.com/cgi-bin/readnews2.pl?newsId=983927 Georgian Company Commences Talks on Gold Production in Occupied Azerbaijani Land ] ] Khazar Ibrahim, the Press-Secretary of the Azerbaijani Foreign Ministry, has stated that the Azerbaijani Embassy in Georgia holds investigations on the issue. The Georgian government officials have stated that Tbilisi approaches negatively to interest shown by "Madneuli" company to the goldfield in the Nagorno-Karabakh, but the company is private enterprise and the government cannot interfere into the activity of the company. [ [http://avciya.org/cgi-bin/e-cms/vis/vis.pl?s=001&p=0109&n=000119&g=/ The Georgian government approaches negatively to interest shown by "Madneuli" company to the goldfield in the Nagorno-Karabakh] . Avcyia. 18 October 2007.] The deal was then reported to have been postponed due to negotiations with the Armenian government about settling of all debts Sterlite had towards the government. [http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=38419&sn=Detail Madneuli takeover of Zod Gold in doubt] Mineweb 16 Oct 2007]

On July 9 2008, the Mineweb website accepted that the allegations concerning the Madneuli’s acquisition of Zod goldmines were "completely untrue", apologized to Generalov and the Industrial Investors "for the embarrassment and damage to their reputation" that the articles have caused, and pledged "a substantial payment to a charity of Mr Generalov's choice in compensation." [ [http://www.mineweb.com/mineweb/view/mineweb/en/page58?oid=56407&sn=detail Apology: Sergey Generalov and Industrial Investors] . Mineweb. 2008-07-09. Retrieved on 2008-07-15.]

ee also

*Gold as an investment
*Silver as an investment

References

External links

* [http://www.madneuli.ge Company Website] accessed Oct 17. 2007 under construction
* [http://www.winne.com/europe/georgia/reports/2006/cp/madleuni/index.php Madneuli] . World Investment News.
* The Bolnisi mine is at coordinates coord|41.364828|44.455662|type:landmark|name=Bolsisi mine