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
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.
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.
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
Positioned for growth following privatization by a leading Russian
underway with new management team including experienced expatriate
class gold and copper exploration portfolio in Georgia.
pursuing new acquisition projects in the Caucasus region, Central
Asia and the FSU.
and financially strong shareholders.
Largest mining company in the Republic of Georgia, operating the
Madneuli open pit copper/gold mine.
in November 2005.
EBITDA US$47.9m on sales of US$103.9m.
of Cu concentrate - 60,000 tonnes, and Au - 70,000 oz in Dore.
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
Independent Russian financial industrial group, established in
value exceeds $1.0 bn, group turnover exceeds $1.5 bn.
group operates through a Private Equity Fund, Management Companies
and Portfolio Companies, Investments in transport, mining and
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
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.
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”.
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
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.
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
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:
Reserves (B+C1+C2) 698,000 89
Resources (P1+P2) 1,120,000 616
Total 1,818,000 705
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