Market Mechanisms

A Major Step Towards International Capital Market


     At the end of 2021, the President Shavkat Mirziyoyev visited the city of Almalik, got acquainted with the implementation of the project for the development of the “Yoshlik-1 field” of the Almalik Mining and Metallurgical Combine in amount 5.12 billion USA dollars. The President stated that the main task is «to turn AMMC into a company capable of operating without state support.»
     In an interview with our correspondent, Deputy Chairman of the Board for Economics and Finance of JSC “Almalyk MMC” KHAMIDOVA Feruza Rustamovna talked about the tasks facing AMMC at a new stage of development and what has already been implemented.
     – Feruza Rustamovna, our Head of State said that in the first half of 2022 Almalik Mining and Metallurgical Combine should receive an international credit rating from the Fitch agency, and then place 5% of its shares on the local stock market. How is the transformation of the combine going?
     – To prepare the plant for entering the stock markets (IPO), JSC The JSC «Almalyk MMC» engaged an international audit company of the Big Four-KPMG, as a consultant. It has developed a four-stage roadmap for 2021-2023, which reflects the implementation of 286 measures providing for the transformation of the combine in the sphere of corporate governance, IT technologies, procurement management, industrial safety, energy management, environmental policy, etc. As per today, most of these measures have already been implemented on a full-scale basis.
     As for the sphere of corporate governance, there have also been changes:
     ● committees on procurement, audit, remuneration and nominations, strategic development and investments have been established under the Supervisory Board;
     ● one independent director has been included in the Supervisory Board, a corporate consultant position has been introduced;
     ● a compliance control service and a department have been created to improve the internal control and risk management system monitoring of production and financial risks, and Ernst & Young was involved in the development of regulatory documentation;
     ● in order to introduce accounting and prepare financial statements based on IFRS, to implement strategic development processes, a new division was created in the structure of the executive office – the Department of strategic Development and Transformation;
     ● the number of employees of the internal audit service was increased;
     ● the position of Deputy Chairman of the Management Board for digitalization was introduced, it was occupied by a specialist with international experience.
     The IT system is being improved at the plant, an IT department has been created. Together with KPMG, an ERP implementation concept has been developed and the 1C: ERP system for accounting and financial reporting has been implemented. At the same time, international standards ISO 45001-2018 in the field of occupational safety and health, as well as ISO 14001 in the field of environmental protection are being implemented. Work is underway to improve operational efficiency with the involvement of consultants with international experience. The financial model developed by us and the audit company Deloitte is being implemented at the Yoshlik-1 field.
     In addition, the transfer of 14 out of 32 non-core assets to the balance sheet of the State Asset Management Agency has been completed. The remaining facilities will behanded over by the end of 2022. Moreover, the land plot of 1,547 hectares belonging to the company was transferred to the balance of the khokimiyat of the Zarbdor district of the Jizzakh region in order to attract investors and create new jobs.
     In June last year, the rating agency S&P Global Ratings assigned the plant a rating of «B+» with a «Stable» outlook. Also by June of this year, it is expected to receive a second rating from the rating agency Fitch Ratings.
     – What has already been done to approach the goal set by the country’s leadership – the stock floatation on the local stock market?
You can read the whole interview in the printed version of the magazine.


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