Chiatura Management Company, in agreement with Georgian Manganese Co, decided to halt underground mining works in Chiatura.

According to the company, the internationally renowned German consultative company DMT GmbH & Co. KG studied the technical- geological and financial situation in Chiatura mines.

“DMT confirmed that mining is financially unprofitable preconditioned by the low quality of extracted minerals and low procession efficiency, stagnation of prices for manganese concentrates, market instability and high cost of operation expenses (OPEX). It also viewed investing in this business as ineffective.

Chiatura Management Company also explained that social liabilities from Trade Unions under collective labour agreements further aggrieved the financial situation, namely, the CMC company paid 100% of wages to Shukruti locals when 70% of mines were paralyzed, while amid fully stopped plant, it paid 60% of wages and retained family insurance to workers.

The company issued 82.6 million GEL to the employees. It also has to attract financial resources to allocate compensation.

Within social liabilities, the company actively works with interested stakeholders to elaborate a strategy that aims to search for alternative ways for the region’s development,” reads the statement.