OREANDA-NEWS. The decision as to increasing of the Charter Fund of the company was made by enterprise owners at General Meeting of Shareholders. Addition emission is expected to increase the charter fund by UAH 13,343,814 (from UAH 1,482,646 to UAH 14,826,460) through issuing extra 2,426,148 shares of UAH 5.50 each. The procedure of new shares emission is to be over by the end of 2007, System Capital Management's press service reported.

The decision to enhance the charter fund of the mining company meets the strategy of SCM Group for development of the clay mining business. In particular, the funds of the additional emission will be allocated to modernize facilities and ensure further growth of the enterprise in line with an approved development program. The shareholders also chose to change the Supervisory Board of the company. UMG (United Minerals Group) Limited (Cyprus) became the only member of the Supervisory Board, while all former representatives of shareholders quit.

The shareholders have also amended composition of the Audit Committee of the company. The shareholders appointed Evgeniy V. Tsimarman CEO of the enterprise. He took the office on October 16, 2007. Earlier, Mr Tsymarman worked as chief engineer at AOZT VESKO. He will be responsible creating the development strategy of the Druzhkovka Ore Mining, implementing strategic plans after their approval, and managing operations of the company.

OAO Druzhkovka Ore Mining was established in 1961. It mines open-cuts Novoraiskoye fire clay deposit and Bantyshevskoye moulding sand deposit applying cutting-edge strip and extraction mining processes. Major consumers of raw materials are businesses operating in mining and metal, fire clay, engineering, ceramics, and china-ware industries in Ukraine and the CIS. Refractory clay is exported to the European market. SCM Group owns 90.58% of charter fund of the company.

UMG (United Minerals Group) Limited (Cyprus) owns clay mining assets of SCM Group, including Druzhkovka Ore Mining, VESKO, and Ogneuporrud. SCM Group controls 100% of the charter fund in UMG.