Mining

Minerals production in Georgia

Georgia is host to an array of minerals that include: aluminium, antimonite, arsenic, barite, bentonite, clay, coal, copper, diatomite, lead, manganese, marble, precious gems/stones, zeolites, and zinc.

Georgia is an established and open mining market. Up to 4500 licences are issued in Georgia including mines, quarries (construction materials) and groundwater.

Georgia’s mining sector is characterized by several significant deposits and investments in manganese, copper and gold and small-to-medium size quarry operations, primarily marble and construction materials.

Two majo players, Chiatura manganese and Tkibuli Coal, have suspended operations due to special management requirements and safety concerns respectively.

Gold and copper

JSC RMG Copper and LTD RMG Gold (known as Rich Metals Group-RMG) has operated in partnership with the Georgian Mining Company and other companies, employing workers in east Georgia, Bolnisi, Dmanisi to produce gold Dore bars and copper concentrate. RMG was listed in the top companies with foreign direct investment in Georgia for 2017.

Iron and steel

In 2016, Georgia had four steel plants, all of which specialized in the production of steel-reinforcing products (mostly rebar) from metal scrap. The plants were the Rustavi metallurgical plant (which was owned by Rustavi Steel LLC), Geosteel LLC (another steel plant located in Rustavi), the Kutaisi metallurgical plant (which was built by Euroasia Steels LLC), and Moulds and Metals Georgia Ltd.’s metallurgical plant in Poti. The total production capacity of the plants exceeded 400,000 metric tons per year (t/yr) of rebar, but actual production in 2016 was only 179,300t.

Manganese

Georgian Manganese operates Chiatura manganese mine located in western Georgia was a world-class deposit that has been mined for most of the 20th century, producing manganese and contributing the majority of the budget revenues.  The operation employs approximately 6,000 local citizens and includes value-addition processing such as smelting at Zestafoni.

Georgian Manganese, LLC  is comprised of the Chiatura Manganese Mine, the Zestafoni Ferroalloy Plant, and the Vartsikhe Hydroelectric facility . This “Chiatura mine complex” includes four underground mines and three quarries and has an annual production capacity of 1.18 million tons of manganese ore and 400,000 tons of manganese concentrate. The mine complex transports its manganese ore by rail to the ferroalloy plant located in Zestafoni.

Cement

Heidelberg Caucuses Cement has two operations in eastern Georgia that include mining of raw materials for clinker and cement production and factories. In 2011, Heidelberg Cement commissioned a port terminal with the capacity to transport 1,200 metric tons per day of cement at Supsa, a port on the Black Sea; today the company reports the need to reduce production due to increased competition and falling market prices.

Coal

Tkibuli coal located in Tkibuli is licenced to the Georgia Industry Group (GIG) and produces thermal (lignite) coal primarily for domestic power generation (13 megawatts). However, this mine operation has been temporarily suspended by the government due to safety concerns.