Page 25 - Caucasus Outlook 2025

5.1.3 Industry
Georgia’s mineral wealth includes a variety of ores (precious, non-ferrous, ferrous and rare metals), non-metallic minerals such as sandstone and marble, as well as semi-precious and jewellery-grade stones. The country is also rich in mineral, thermal and fresh water deposits. These resources have formed the foundation of its industrial and manufacturing sectors.
The mining sector is one of Georgia's oldest industries. The coal industry, centred around the restructured Tkibuli mines, has been a cornerstone of mineral extraction. Other coal deposits in Tkvarcheli and Akhaltsikhe have also bolstered production.
Georgia’s manganese reserves are a key contributor to the country’s industrial output, with nonmetallic minerals such as talc and marble being supplied to various industries across the former Soviet Union.
However, the industry has faced recent challenges. On November 1, 2024, the Zestaponi Ferroalloy Plant and the Chiatura Management Company, operated by Georgian Manganese, announced a suspension of operations until March 2025. This was attributed to declining global silico-manganese prices and reduced demand over the past two years. The temporary shutdown has included a complete halt to production and the placement of the plant under temporary management.
Georgia is also making efforts to address environmental concerns linked to its industrial activities. A hazardous waste management project is underway to safely handle and remediate areas contaminated with arsenic waste. Minister of Agriculture and Environmental Protection Otar Shamugia said in November that two phases of the project have been completed, with the third phase set to begin in the spring of 2025.
Light industry in Georgia is entered in major urban areas, producing textiles such as cotton, wool and silk fabrics, as well as a variety of clothing items.
5.1.4 Major Sectors & Companies
Georgia's agriculture sector benefits from fertile soil and a favourable climate, enabling the production of high-value crops like grapes, nuts, citrus fruits and stone fruits. Despite its potential, the rugged terrain limits arable land and hinders large-scale field crop cultivation.
Agriculture contributes 7-8% of GDP and provides a safety net for the 40% rural population, though commercial farming is underdeveloped due to fragmented land ownership.
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