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Read our interview with, Guela Akobia, Director General of Madneuli ...read more

“Mineral Wealth for the future of Georgia”
Georgia, Bolnisi region, Kazreti Tbilisi Office:
Georgia, Tbilisi, Leselidze, 25
Tel. (+995 32) 43 96 94/ 91
Fax. (+995 32) 43 96 93

Madneuli is the leading mining company in Georgia. Main operations include; ore mining and processing of copper-gold-bearing ore. The company produces copper concentrate and gold in Dore Alloy, sold via standard international sale contract terms based on prices quoted by the London Metal Exchange and London Bullion Association.

The enterprise’s finished product - copper concentrate is 100% exported. According to un-audited information in 2005 sales of Copper Concentrate amounted to GEL 66.7 millions, while sales of Gold alloy Dore amounted to GEL 56.8 millions. Together it achieved to 8% of total Georgian export.

madneuli at first glance
  • Madneuli is a long established gold and copper concentrate producer.
  • Revenues in excess of US$100.0 million, and EBITDA margin of over 45%.
  • Positioned for growth following privatization by a leading Russian investor.
  • Restructuring underway with new management team including experienced expatriate staff.
  • First class gold and copper exploration portfolio in Georgia.
  • Actively pursuing new acquisition projects in the Caucasus region, Central Asia and the FSU.
  • Reputable and financially strong shareholders.
  • Largest mining company in the Republic of Georgia, operating the Madneuli open pit copper/gold mine.
  • Privatized in November 2005.
  • 2006(P) EBITDA US$47.9m on sales of US$103.9m.
  • Output of Cu concentrate - 60,000 tonnes, and Au - 70,000 oz in Dore.
  • B+C1+C2 reserves of Cu - 698,000 t and Au - 2,861,368 oz.
  • 1,882 sq.km exploration license area with combined reserves and prognostic resources of Au – 22 m oz and Cu – 1.8 m tones.
industrian investors group
  • Independent Russian financial industrial group, established in 1999.
  • Asset value exceeds $1.0 bn, group turnover exceeds $1.5 bn.
  • The group operates through a Private Equity Fund, Management Companies and Portfolio Companies, Investments in transport, mining and alcoholic beverages.

The deposits of mineral resources of the Bolnisi ore region have been used from the ancient times, for thousands of years, which is evidenced by ancient mine roadways remained at these deposits, remnants of ancient melting furnaces and by ancient written sources. In the 4th -3rd millennia B.C., this region was one of the centers of non-ferrous metal ore extraction and development of alluvial gold deposits, and approximately since the 2nd -1st millennia B.C. – iron deposits were developed. In the 17th-19th centuries, there was intensive development of the region’s deposits of non-ferrous, noble metals (Dambludka, Bnelikhevi, Sakdrisi) and iron (Balidara, Tashkesan, Rkinitskhali, Demursu). Late in the 19th century – early in the 20th century, manganese deposits of the Tetritskaro .

The latest mining history of Georgia began in the middle of the last century when, due to the sharp growth of demand for noble metals, the gold-bearing ores of the deposits of Georgia became an object of a large-scale geological examination and development.

Serious exploration works in the area of the Madneuli deposit started in the mid-40th of the last century. First, barite ores were found, but in 1949 discovered was an entire spectrum of copper pyrite ores: copper, lead, zinc, sulfur, pyrite, silver, gold-bearing quartzite, cobalt, selenium and other.

In 1956 the Madneuli deposit was proved and the construction of the Madneuli Mining-Concentration Enterprise based of the copper and barite ores processing technology began in 1970.

The most important landmark of the Georgian history of gold mining was the commissioning of the Madneuli Mining-Concentration Enterprise in 1975 and starting supplies of gold-copper concentrates and gold-bearing ores to the Alaverdy Mining-Metallurgical Enterprise and the Ararat Gold Recovery Mill in Armenia, and also to the Middle Ural Copper Smelting Plant in the Urals. In 1978, the enterprise reached its designed capacity.

In 1994, Joint-Stock Company “Madneuli” was founded on the basis of the enterprise, with the controlling interest belonging to the state.

A significant event of that period was also the construction and commissioning of a gold recovery mill at the Madneuli deposit by joint Georgian-Australian enterprise “Quartzite” in 1997, using the method of heap leaching of gold-bearing secondary quartzite, with an annual production capacity of 2 tons of gold.

In November of 2005, JSC “Madneuli” was privatized; the tender was won by Staton Equities Corporation, which subsequently acquired the remaining 50% of the JV “Quartzite”.

Today JSC “Madneuli” is the leader of the mining and processing industry and an important component of the economy of Georgia. In 2005, over 1.7 million tons of ore were processed, and over 53,000 tons of copper concentrate and 57,000 oz of gold in Dore alloy form was produced.

description of madneuli deposit region

The Madneuli gold-copper-barite-complex ore deposit is situated in the south of Georgia, 80 kilometers from Tbilisi, in the area bordering with Azerbaijan and Armenia. The region of the deposit is densely populated. Most of the population is engaged in agriculture (viticulture, melon-growing, cattle-raising). The region is highlands with the absolute heights varying between 500 and 1300 m above sea level and favorable geographic, climatic and economic conditions. The climate in the region is moderately warm in winter and hot in summer. The average annual temperature is + 10º C.

Electrified railways, motorways, routes of water supply, irrigation systems, cable communication lines, gas pipe-lines, including those running into the neighboring countries, cross the territory of the region. The Baku-Ceihan oil pipeline, which is under construction, and the route of the projected Shakhdeniz-Erzerum gas pipeline from the Caspian oil and gas fields run via the ore region, in its northern part. According to the TRACECA plans, the South Georgian railway running through the territory of the Bolnisi ore region and neighboring Javakheti and a motorway running along it will be linked to the transport arteries of Turkey and Europe. ?

Two hydro-electric power stations and over 150 km of the main high-voltage electric power transmission lines satisfy the region’s electricity needs and also ensure import and export electric power transmission to the neighboring regions and foreign countries.

It should be noted that in the immediate proximity of the ore region border (5-10 km along straight line), on the territory of neighboring Armenia, there located a group of deposits of non-ferrous, noble metals and barite which were intensively developed until the recent time and on which basis a large metallurgical plant was operating until 1991, producing up to 50-55 thousand tons of refined copper and other valuable products per year.

Cargoes are mostly transported by rail. The railway distance from the Black Sea ports of Poti and Batumi is about 350-400 km, and to the Baku port on the Caspian Sea – 550 km.

The payable area of the Madneuli deposit is linked to Tbilisi and other industrial and cultural centers of Georgia, the Black Sea ports of Poti and Batumi and the neighboring countries by motorways and railways. Electricity, natural gas, drinking and process water are supplied to the region.

reserves and resources

The Madneuli gold-copper-barite ore deposit is situated in Bolnisi Region in the south of Georgia, 80 km south from Tbilisi, near Armenian and Azerbaijanian borders. The deposit belongs to the group of volcanogenic-hydrothermal deposits with the variety of ore types: gold-silver bearing secondary quartzite, copper-pyrite ores, barite-gold bearing ores, copper-zinc ores etc.

Additional, not yet developed, license area covers about 1882 km2 with six explored and twelve prospective deposits of noble and non-ferrous metals containing approximately 126 mln tons of reserves and 311 mln tons of resources. Reserves and resources of copper and gold are given in following table:

  • Copper Gold
  • (Tonnes) (Tonnes)
  • Reserves (B+C1+C2) 698,000 89
  • Resources (P1+P2) 1,120,000 616
  • Total 1,818,000 705

Changes occurring at JSC Madneuli, reforms which are currently in progress at the company give us a reason to believe that in near future the company will be one of the best enterprises in Georgia and in the whole region, with significant positive impact on Georgia’s economic development

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