Russia Metals and Mining, VSMPO-AVISMA
The Board of Directors of the largest titanium producer in the world the Russian corporation VSMPO-Avisma has recommended its shareholders at the annual general meeting to decide to pay dividends f
Corporation VSMPO-Avisma PJSC increases profit. The net profit under RAS in 2016 grew by 1.9 times to 26.633 bln roubles against 2015.
In 2016, the VSMPO-Avisma corporation made the net profit under the RAS in the amount of 26.633 billion rubles, which is almost 1.8 times more than in 2015.
VSMPO-Avisma has approved the investment plan for 2017.
The total volume of supply of titanium products of VSMPO-Avisma in 2016 might stay at the level of 2015 – 28-29 thousand tons, the CEO M. Voevodin said.
The Board of Directors of VSMPO-Avisma has decided to hold the extraordinary meeting of shareholders on September 21st 2016 in the form of absent voting.
VSMPO-Avisma plans to support the level of titanium production at 28 thousand tons a year during the next 7 years. It is stated in the materials of company’s consolidated financial statements for 2015.
The Russian Ministry of Natural Resources has offered a range of state benefits for development of deposits, providing Russian steelmakers with alloy raw materials to reduce their dependence on imports (more than $500 million per year). Thus, the Ministry proposes to nullify the severance tax for new projects, to use the Federal State Reserve Agency’s purchases to support the demand, to decrease tariffs of monopolies. A number of manufacturers welcome the idea of the state support, but the position of metallurgists is more cautious: according to sources of the Kommersant, the imported alternative holds back prices of the Russian raw materials suppliers.
The Ministry of Natural Resources has proposed to support the development of deposits of solid minerals that are important to reduce dependence on imports of iron and steel on account of the budget; this follows from the letter of the Deputy Minister, head of Rosnedra Evgeny Kiselyov dated April 8 to the Ministry of Industry. The Ministry prepared the proposals on behalf of the Deputy Prime Minister Arkady Dvorkovich, who held a meeting with steelmakers in February.
In 2016, the Ministry of Natural Resources and Ecology of the Russian Federation began preparation of anti-stress measures to support the subsoil users willing to invest in the expansion of the mineral resource base through geological exploration. The head of Ministry of Natural Resources Sergei Donskoy predicts that in the current year the exploration in the world and in Russia in particular will fall by 10 - 20% due to volatile prices for mineral resources on markets. But the state can’t afford companies to stop geological survey, especially in the field of solid mineral production: in the case of stop of the geological exploration already ten years later it will be possible to talk about the lack of resources for the metallurgical complex of the country.
To expand and deepen
Despite the Ministry of Natural Resources’ forecasts, the companies that work for the long term, continue to search for new deposits. The tool is launch of the application principle to areas for research: at the request of the companies the state allow them to carry out exploration in areas of potential mineral deposits without auctions and competitions. "For two years, since the principle was introduced, the subsoil users filed 746 applications for high-risk exploration works. Upon review, 305 licenses have been already issued, given that prior to the introduction of the bid principle we issued only 25 licenses per year, "- emphasizes Sergei Donskoy.
In 2015 VSMPO-Avisma will spend 978 mln roubles for the capital repair of equipment. In total over 450 units will be renewed.
According to the director for technical issues and repair of VSMPO-Avisma, Y. Semichev, repair works always require serious efforts and often the period of execution are postponed. Foreign currency rising in price makes its corrections. In fact the funds planned for equipment in the autumn 2014 are being changed. It takes time to approve new contracts.
The works on the equipment renewal at the enterprise are being held. The large-scale works are held at the shop #12. New heating furnaces, and 12 boring-and –turning mills produced in Czech are being installed there. Similar equipment renewal is held at the forge complex of the shop #21. The shop #16 will soon receive modern HAGC.
Large lots of equipment supply are expected for the new compressor station. All aggregates have been paid for and are on the way. Their assembly is planned for October 2015.