The Revenue Service of Georgia has placed a tax lien on the country’s largest mining company, Georgian Manganese. The precise amount of outstanding debt that prompted the decision, which is dated January 16, 2025, has not been publicly disclosed.
The move comes amid growing financial difficulties for the company and its affiliate, Chiatura Management Company (CMC), which recently announced that underground mining in Chiatura, in the country’s west, was no longer viable. CMC cited a report from international consultancy firm DMT, which confirmed that continued operations would be financially unsustainable.
Maxim Mazurenko, director of Chiatura Management Company, said that persistent financial challenges, compounded by social resistance to technological changes, had led to a halt in production since November 2024.
“Over the past year, the financial situation has deteriorated significantly due to the paralysis of the mines by the population. Despite the stoppage, we continued to pay full salaries to employees, totaling 83 million GEL in loans. With banks now refusing further credit, we were ultimately unable to pay wages,” Mazurenko said.
Georgian Manganese had previously announced a temporary suspension of operations due to financial constraints, pledging to cover 60% of employee salaries during this period. However, after February 28, miners in Chiatura launched protests over unpaid wages, demanding government intervention in the company’s affairs.
The mining giant is owned by Georgian American Alloys, an offshore company linked to Ukrainian oligarch Ihor Kolomoisky. However, since 2017, Georgian Manganese has been under special management, with businessman Giorgi Kapanadze serving as chairman of the supervisory board. Kapanadze also owns the Primetime media holding and Rustavi 2 TV.
