Management decides to liquidate Far East tungsten mining plant

VLADIVOSTOK, Oct 19 (PRIME) -- The management of mining and concentrating plant Lermontovksy GOK, a subsidiary of Primorsky Region’s power and heating distribution company Primteploenergo, that produces tungsten concentrate, has decided to liquidate the plant over debts and absence of sales markets, Primteploenergo said in a statement on Wednesday.

The Lermontovsky GOK has accumulated debt of 400 million rubles, including a debt of 150 million rubles to Primteploenergo, and is unable to sell its products.

To continue operations, the plant needs a 250 million ruble investment, which accounts for half of Primteploenergo’s annual maintenance program for the 32 municipalities of the region where it operates.

The Industry and Trade Ministry of the region will decide whether tungsten is to be mined in the region taking into account the situation on the sales markets, the company said.

(61.7032 rubles – U.S. $1)

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