Where does Ural Mining and Metallurgical Company (UMMC) invest?
Sector: Non-ferrous metallurgy
Investments for 2023: RUB 85.1 billion
Investments for 2022: RUB 78.3 billion
Ural Mining and Metallurgical Company (UMMC) is one of the largest holdings in Russia in the field of non-ferrous metallurgy. The company's main activities are related to the extraction and processing of copper, zinc, precious and rare earth metals. In 2023, UMMC increased its investment volume to RUB 85.1 billion, which is RUB 6.8 billion more than in 2022.
UMMC's main assets
1. Production capacities
UMMC operates a network of more than 40 enterprises located in various regions of Russia, making it one of the largest participants in the non-ferrous metallurgy industry.
Gai Mining and Processing Plant (GOK):
Located in the Orenburg Region, Gai Mining and Processing Plant is one of the company's key assets. It mines and processes copper ore, which is the basis for the production of copper cathode. In recent years, the enterprise has undergone major modernization:
Digitalization of processes: Implementation of automated control systems that allow monitoring each stage of production in real time.
Automation of equipment: Use of autonomous equipment, including self-propelled drilling rigs and robotic ore transportation systems.
Increase in capacity: New beneficiation lines have been introduced, which allows processing more ore and increasing metal yield.
Kyshtym Copper Electrolyte Plant:
The plant, located in the Chelyabinsk Region, is one of the largest producers of copper cathode in Russia. These products are in demand both on the domestic and global markets due to their high quality.
Smelting equipment: The plant has modernized its smelting units, which allows reducing production costs and improving environmental performance.
Export potential: The plant's cathode copper is used in the electrical industry, which makes it in demand in the markets of Europe and Asia.
Infrastructure development: Additional warehouse space and logistics terminals have been built to optimize the transportation of products.
2. Research centers
UMMC actively invests in scientific research to improve the efficiency of production processes and develop new technologies.
Innovative laboratories:
The company's research divisions are engaged in:
Developing new alloys and improving the characteristics of metals.
Creating environmentally friendly methods of ore processing, which reduces the harmful impact on the environment.
Digitalization programs:
As part of the digitalization strategy, UMMC is introducing automated control systems:
MES systems (Manufacturing Execution System): Allow you to integrate data on production processes into a single platform, which improves the accuracy of forecasts and controllability.
Big Data and AI: Using big data analysis technologies and artificial intelligence to optimize the extraction and processing of raw materials.
Cooperation with scientific institutes:
UMMC actively cooperates with leading universities and research centers in Russia, which allows the company to remain at the forefront of technological progress.
3. Environmental infrastructure
One of the key areas of UMMC's activity is minimizing the environmental impact of production. The company allocates significant funds to improve environmental safety and restore natural resources.
Filtration and purification systems:
UMMC enterprises have modern filters that reduce emissions of pollutants into the atmosphere. Wastewater treatment technologies have also been introduced, which reduces the negative impact on water resources.
Reclamation projects:
UMMC implements large-scale projects to restore lands used for mining:
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- Засаживание горных территорий деревьями и растительностью для восстановления экосистем.
- Создание водоёмов на месте отработанных карьеров, которые превращаются в биологически активные зоны.
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Energy saving:
The company is implementing technologies aimed at reducing energy consumption, which not only reduces the ecological footprint, but also reduces production costs.
The main areas of UMMC investment
1. Modernization of production capacities
UMMC is actively updating its enterprises, introducing modern technologies to increase productivity and reduce costs.
Gai Mining and Processing Plant (MPP):
New ore beneficiation lines have been introduced at Gai MPP, which allow for increased ore processing and higher copper yield.
Highly efficient crushing units have been installed, reducing energy costs.
An automatic process control system has been introduced, which increases the accuracy of ore processing.
Modernization of the transport infrastructure within the enterprise has accelerated the delivery of raw materials for processing.
Kyshtym Copper Electrolyte Plant:
The plant is equipped with the latest smelting furnaces, which:
Ensure a more uniform heat distribution, increasing the quality of the smelted copper.
Reduce greenhouse gas emissions through the use of environmentally friendly technologies.
Increase productivity by 15%, which allows the plant to meet the growing demand for cathode copper.
2. Environmental projects
UMMC allocates significant funds to improve the environmental safety of its production facilities, striving to minimize the negative impact on the environment.
Reduction of carbon dioxide emissions:
Installation of modern gas cleaning systems at metallurgical plants allows to reduce CO2 emissions by 20%.
Transition to more energy-efficient equipment reduces the company's carbon footprint.
Closed water circulation technologies:
The enterprises have implemented water reuse systems, which reduce the consumption of natural resources.
Special reservoirs for water purification and reuse in technological processes have been built at the Gaisky GOK.
The company's enterprises are implementing projects to restore aquatic ecosystems in mining areas.
3. Expanding the extraction and processing of rare earth metals
Rare earth metals are a key component for high-tech industries, including the production of electronics, batteries and equipment for renewable energy.
Increasing production:
UMMC is developing new deposits of rare earth elements, especially in the Ural region. This provides a strategic advantage in the context of growing global demand.
Development of processing capacities:
The introduction of deep processing technologies for raw materials allows for the extraction of rare earth elements with a high degree of purity.
Cooperation with scientific institutes contributes to the development of innovative methods for processing rare earth metals, reducing costs and increasing environmental safety.
4. Investments in new projects
UMMC is actively exploring and developing new deposits of copper, zinc and other metals.
Development of new deposits:
The company conducts geological exploration in Siberia and the Far East, where significant copper reserves are concentrated.
In 2023, the development of a rare earth element deposit in the Orenburg Region began, which will become key for the company in the coming years.
Innovative developments:
UMMC invests in the creation of new mining technologies using automated equipment, which reduces the impact of the human factor and improves safety.
5. Development of export potential
The company is actively strengthening its position in international markets, expanding the export of its products.
Copper and zinc exports:
UMMC products are in demand in the markets of Asia, Europe and Africa, where the quality of Russian metals is highly valued.
In 2023, the volume of copper exports increased by 12% compared to the previous year.
International cooperation:
UMMC participates in large contracts for the supply of metals for high-tech industries, including batteries and solar panels.
The company develops long-term relationships with international customers, ensuring stable supplies and competitive prices.
UMMC's Impact on the Russian Economy
1. Regional Development
UMMC plays a key role in the development of the regions where it operates, contributing to the creation of jobs, the development of social infrastructure and improving the standard of living of the population.
Job creation:
UMMC is a major employer in the Sverdlovsk, Chelyabinsk and Orenburg regions.
The company's enterprises employ tens of thousands of people, including specialists in the field of mining, processing and engineering solutions.
UMMC actively cooperates with professional educational institutions, providing opportunities for internships and employment of graduates.
The company also supports advanced training and training programs for its employees, which contributes to the growth of professionalism and stability in the regions.
Development of social infrastructure:
UMMC invests in the construction and modernization of social facilities in the cities where its enterprises operate:
Construction of schools, kindergartens and medical institutions.
Development of transport infrastructure, including roads and utilities.
Support for cultural and sports events aimed at improving the quality of life of the local population.
Stability of regional economies:
UMMC enterprises are often city-forming, providing a significant contribution to regional budgets. Tax revenues from the company's activities are used to finance socio-economic programs.
2. Strengthening export potential
UMMC is one of the largest exporters of non-ferrous metals in Russia, making a significant contribution to the flow of foreign exchange into the country's economy.
Export of copper and other metals:
UMMC supplies products, including cathode copper, zinc and rare earth metals, to the markets of Asia, Europe and Africa.
The high quality of Russian copper makes it in demand
UMMC's influence on investors
1. Lack of public status
Ural Mining and Metallurgical Company (UMMC) is not a public company, which means that its shares are not traded on stock exchanges such as Moscow or St. Petersburg. This limits the ability of private investors to directly participate in the company's capital. However, the lack of public status does not diminish its attractiveness to institutional investors and financial partners.
Closed nature of ownership:
UMMC is managed by private owners and remains a closed corporation, which allows the company to quickly make strategic decisions without the need to coordinate with a broad base of shareholders.
This provides flexibility in financial management and the implementation of investment programs.
However, for potential investors, this creates certain restrictions in access to information about the company's financial performance.
2. Attractiveness for financial institutions
Despite the lack of public status, UMMC is a reliable partner for banks, investors and contractors due to its financial performance and strategic importance.
Investments in large projects:
The company annually implements large-scale projects related to the modernization of production facilities, the development of new deposits and environmental initiatives.
These projects require significant financial investments, which makes UMMC an attractive client for banks and credit institutions.
Financial institutions are ready to provide the company with credit lines and participate in the financing of its projects due to the stability of the business and high demand for its products.
Long-term partnerships:
UMMC develops long-term relationships with contractors and suppliers, which ensures a stable flow of orders and the sustainability of their business.
This is beneficial both for the company itself and for its business partners interested in stable and predictable terms of cooperation.
3. Potential for strategic investors
UMMC remains an attractive target for strategic investors interested in long-term investments in the metallurgical and mining industries.
Access to unique resources:
The company controls some of the largest deposits of copper, zinc and rare earth metals in Russia, which makes it a key player in the field of raw materials. For strategic investors, participation in UMMC projects can provide access to these valuable resources.
Innovations and environmental projects:
UMMC actively implements innovative technologies and invests in environmental initiatives, which increases its attractiveness for investors focused on sustainable development.
The company's modern environmental projects comply with international standards, which may be of interest to foreign partners seeking to comply with ESG principles (environmental, social and governance responsibility).
4. Risks for investors
As in any large business, investments in projects related to UMMC are associated with certain risks:
Geopolitical instability: Sanctions and restrictions on foreign markets may complicate the export of products and affect the company's revenue.
Price fluctuations for metals: Dependence on the global price of copper, zinc and rare earth metals may affect the company's profitability.
Environmental requirements: Strengthening environmental regulations requires significant investments from the company, which may affect its operating profit.
Commentary by Sergey Tereshkin, CEO of Open Oil Market:
"Ural Mining and Metallurgical Company is an example of how private companies can play a key role in the Russian economy, contributing to the development of regions, modernization of industry and strengthening of export potential. UMMC's contribution to the production and processing of non-ferrous metals not only supports high-tech industries within the country, but also increases the global competitiveness of Russian metallurgy.
Despite its non-public status, the company attracts attention due to large-scale investments in innovation and environmental projects. This creates enormous potential for financial institutions and strategic investors ready to participate in projects with a long-term perspective. UMMC demonstrates that sustainable development and technological innovation can be the basis for the company's growth and its significance both at the Russian and international levels.
