SCR and group of companies GeoProMining signed an agreement on strategic cooperation

YEREVAN, December 1. /ARKA/. South-Caucasian Railway and group of companies GeoProMining signed an agreement on strategic cooperation and partnership on Tuesday.

The agreement includes regulation of interrelations of parties related to organization of transport service within the group of GeoProMining on transportation of gold mines from Sotk subsoil to Ararat processing plant on mutually beneficial conditions.

“We emphasize the importance of service and considered the program of our cooperation targeted at the increase of transportation volumes”, said Shevket Shaydullin, General Director of CJSC “SCR”.

“On the basis of the agreement, a working group was established which will deal with technical issues directed at the minimization of expenses. We expect fruitful and long-term cooperation”, he said. Investments of SCR in the frames of the agreement will be 523 million rubles in 2010-2011. Roman Khudoliy, President of the Group of Companies GeoProMining said that the signed agreement showed that large companies can develop mutually beneficial cooperation.

“We plan to increase the volume of gold mining and depend on the railway and transportation. Railway company is interested in assisting the infrastructure via transportation”, said Khudoliy. The agreement consists of general principles of interrelation of parties targeted at the quality increase of transport service and improvement of transport expenses of organization of transportation in agreed terms.

GeoProMining and SCR conduct negotiations for the increase of transportation volumes from Sotk subsoil to Ararat processing plant. It is planned that SCR will create opportunities for Sotk-Vardenis-Hrazdan-Ararat direction for transportation of 1,5-2 million tons annually.

CJSC “South Caucasian Railway” is 100% affiliate of Open JSC “Russian Railway”. CJSC “Armenian railway” was transferred under concession management of CJSC “SCR” according to Concession Agreement signed on February 13, 2008. The terms of concession management is for 30 years with the right of prolongation for another 10 years.

The group of companies GeoProMining is international private company with diversified resource base of metals established in 2001. The production includes gold in the form of alloy “dore”, as well as copper molybdenum concentrates. The group deals with mining of metals in the territory of Russia, Armenia and Georgia. -0--