Uzbekistan plans to modernise mining company

02 March 2020

The president of Uzbekistan, Shavkat Mirziyoyev, last week chaired a meeting on plans to reform fully state-owned enterprise Navoy Mining and Metallurgical Plant (NMMP). The country's largest industrial enterprise, NMMP produces gold, uranium and rare metals as well as other products.

Mirziyoyev chairing the meeting on Navoy's future (Image: Uzbek President's Office)

NMMP accounts for 10% of all industrial production in Uzbekistan and 18% of budget revenues, according to a government statement on the 26 February meeting, and by the volume of raw materials, it is the third largest gold producer in the world. However, the value of its assets is much less than similar companies abroad, it said, with a book value currently estimated to be USD1.3 billion, while the market price of comparable foreign enterprises is USD11 billion.

"In this regard, the complex is projected to be transformed into a modern company. The state is taking comprehensive measures in this direction," it said.

The Uzbek government wants to sell 10% of NMMP's shares as part of plans to sell off state shares in more than 1000 enterprises, according to a draft presidential decree announced on 28 February.

In an address to the Oliy Majlis - Uzbekistan's Supreme Assembly - last month, Mirziyoyev announced plans to turn the Navoy and Almalyk mining and metallurgical plants into "fully fledged participants in the international financial market" and tasked cabinet ministers with devising a strategy to manage and reform enterprises in which the state owns shares.

According to World Nuclear Association, Uzbekistan in 2018 accounted for 2404 tU - 4 % of globa uranium production.

Researched and written by World Nuclear News