Monday, November 12 2018 13:01
Alexandr Avanesov

New strategy of Armenia`s mining industry is directed against  "offshore hide-and-seak" and aimed at revealing the real owners of  companies

New strategy of Armenia`s mining industry is directed against  "offshore hide-and-seak" and aimed at revealing the real owners of  companies

ArmInfo. Companies engaged in the development of metal deposits will have to inform the public and government bodies of Armenia about real owners.

 

Amendments to the law "On state registration of legal entities" and in a package of  related laws were approved at a meeting of the parliamentary  commission on economic issues. Introducing the draft amendments,  Deputy Minister of Energy Infrastructures and Natural Resources of  Armenia Vardan Gevorgyan informed that the companies undertake to  register owners in the state register. Also, they will have to record  all changes in the composition of the owners. The document also  presents the procedure for submission of the necessary documents and  transactions.

The deputy minister stressed that the package is intended to resolve  the issue with the true owners of companies registered in offshore  areas, about which the authorities of the country have practically no  information. This measure is based on Armenia's international  commitments under the Extractive Industries Transparency Initiative  (EITI), of which Armenia became a member in 2017 and developed under  the initiative of the Road Map for Identifying the Real Owners only  28 companies engaged in the development of metal deposits. As for  non-metallic deposits, in the development of which about 400  companies are involved, they are not yet included in this draft  amendment.

In turn, Mikael Melkumyan, Deputy President of the National Assembly  of Armenia, pointed out a serious problem regarding the mining  companies registered in offshore zones. According to him, over the  past few years, 50 million tons of ore were exported from Armenia,  while in the peak Soviet period this figure did not exceed 8 million  tons. The question, according to the deputy, rests on low royalty  rates, which in total amount to 16.5%. As a result, depending on  price fluctuations on the world market, companies get huge super  profits.  Mikael Melkumyan reminded again about the construction of a  copper smelter by Chinese investors in Armenia. "Unfortunately, this  project doesn't come further than conversations, meanwhile, as its  construction would solve the issue of royalties and super profits,"  the MP stressed, noting that the subsoil is state property and should  be under its scrutiny.  In response, Vardan Gevorgyan informed that a  new strategy for the development of the mining industry is currently  being developed, in which flexible fiscal mechanisms will be  reflected.  To note, the state balance of mineral reserves currently  accounts for more than 670 solid mineral deposits with proven  reserves, including 30 metal. About 400 of these deposits are being  developed, including 28 metallic. Among metallic minerals there are 7  copper-molybdenum deposits, 4 copper, 14 gold and gold- polymetallic  deposits, 2 iron ore and 1 aluminum ore. Armenia also occupies one of  the leading places in the world in terms of the wealth and diversity  of reserves of non-metallic ores.  According to independent  observers, the previous authorities had special agreements with  subsoil users, who, using their offshore companies, sold them ore  concentrate at a lower price. And those, in turn, resold it at market  exchange prices to final consumers. Thus, the republic did not  receive almost half of the income from the sale of minerals. This  predatory mechanism, as a rule, in international practice is blocked  by a high level of royalty, which makes the use of such schemes  unprofitable. In Armenia, due to non- gratuitous agreements with the  previous authorities, the level of royalties was extremely low, which  created a fertile ground for concealing the real incomes of companies  and the active use of offshore schemes for this.  To recall,  immediately after the "velvet revolution" and the change of power in  the country, mass actions began in Armenia aimed at hindering the  activities of mining companies. RA Prime Minister Nikol Pashinyan  touched on this topic. On July 5, during a trip to Syunik region, he  stated that if the necessary facts were available, the Armenian  government would take a decision on the mining industry. The head of  the government stressed that the subsoil of the country was destroyed  in Armenia, and the economic growth of the country was tied to world  prices for copper. "I think this is a problem, but I don't think that  the mining industry should be closed. I gave instructions to conduct  research at all polymetallic deposits for compliance with  environmental standards. I ask you to give us the opportunity to  gather facts on the basis of which it will be possible to make this  or that decision. As a PM, I don't have the right to make decisions  about the closure of a mine just like that. To make a decision, it's  necessary to gather facts that must be indisputable and then  decisions will already be made, "Nikol Pashinyan stressed.

POST A COMMENT
Input digits     


News
At request of Belarusian partners, Armenian inspectors to check  Ararat Brandy Factory products At request of Belarusian partners, Armenian inspectors to check  Ararat Brandy Factory products 
Syunik governor not familiar with details of residential house  construction project in ShurnukhSyunik governor not familiar with details of residential house  construction project in Shurnukh
Water tariff to not change in Armenia in 2024 at expense of subsidies  from state treasuryWater tariff to not change in Armenia in 2024 at expense of subsidies  from state treasury
Armenia`s gross international reserves even farther from historical  maximumArmenia`s gross international reserves even farther from historical  maximum
Armenia to take out EUR 92.3mln from WB to cover budget deficit  Armenia to take out EUR 92.3mln from WB to cover budget deficit  
Armenia, Kazakhstan to establish joint business club  Armenia, Kazakhstan to establish joint business club  
Bolat Imanbayev: Armenia-Kazakhstan trade and economic relations are  developing dynamically; nevertheless, they do not reflect  countries`  full economic potentialBolat Imanbayev: Armenia-Kazakhstan trade and economic relations are  developing dynamically; nevertheless, they do not reflect  countries`  full economic potential
Kazakhstan offers Armenia to consider new alternative logistics routeKazakhstan offers Armenia to consider new alternative logistics route
Dependence of Armenia`s economic activity on jewelry industry could  cause problems - Luys FoundationDependence of Armenia`s economic activity on jewelry industry could  cause problems - Luys Foundation
AraratBank places its 27th issue of dollar bondsAraratBank places its 27th issue of dollar bonds
Viva-MTS changes its company name to Viva ArmeniaViva-MTS changes its company name to Viva Armenia
Deputy Minister of Economy: Armenia-Russia cooperation potential may  be realized through cooperation projects in production sectorDeputy Minister of Economy: Armenia-Russia cooperation potential may  be realized through cooperation projects in production sector
Team Systems contributes to smart technology development Team Systems contributes to smart technology development 
Who will be beneficiaries of tax amnesty in ArmeniaWho will be beneficiaries of tax amnesty in Armenia
Belarus bans import of Ararat Brandy Company products Belarus bans import of Ararat Brandy Company products 
5 000 dram Bonus from IDBank for Pension Card Holders5 000 dram Bonus from IDBank for Pension Card Holders
Armenia`s public debt reaches $12 billionArmenia`s public debt reaches $12 billion
Price index of industrial products is decreasing in ArmeniaPrice index of industrial products is decreasing in Armenia
Industrial sector driver of economic activity in Armenia Industrial sector driver of economic activity in Armenia 
Armenian CB issue s new collector coins Armenian CB issue s new collector coins 
99.8% defense budget performance in 202399.8% defense budget performance in 2023
IDBank issues the 1st tranche of dollar bonds of 2024IDBank issues the 1st tranche of dollar bonds of 2024
AFD delegation presented with details of Vedi reservoir construction  and irrigation network modernization projectAFD delegation presented with details of Vedi reservoir construction  and irrigation network modernization project
Parliamentarian: Armenia attaches great importance to using  opportunities of digital transformationParliamentarian: Armenia attaches great importance to using  opportunities of digital transformation
DPM: we need not only quantitative increase, but also qualitative  changes in urban development field DPM: we need not only quantitative increase, but also qualitative  changes in urban development field 
​​​​​​​IDBank as a Participant in the Conference of My Forest Armenia NGO​​​​​​​IDBank as a Participant in the Conference of My Forest Armenia NGO
ENA bonds quotation in volume of AMD 32 billion to start on AMX from  March 27ENA bonds quotation in volume of AMD 32 billion to start on AMX from  March 27
Switzerland launches SIGMA program with total budget of CHF 12  million Switzerland launches SIGMA program with total budget of CHF 12  million 
Armenia`s State Revenue Committee launches e-system of income  statement presentation  Armenia`s State Revenue Committee launches e-system of income  statement presentation  
Armenia`s ranking in Index of Economic Freedom decreased by 0.2 pp  over yearArmenia`s ranking in Index of Economic Freedom decreased by 0.2 pp  over year
France to sponsor establishment of cheese-making school in Armenia`s  Tavush France to sponsor establishment of cheese-making school in Armenia`s  Tavush 
The South Caucasus Railway will suspend the sale of tickets using MIR cards The South Caucasus Railway will suspend the sale of tickets using MIR cards
Azerbaijan continues attempts to Azerbaijan continues attempts to "hit" Armenian nuclear power plant
Armswissbank participates in gcf regional dialogue in skopjeArmswissbank participates in gcf regional dialogue in skopje
IDBank issues the 1st tranche of dollar bonds of 2024IDBank issues the 1st tranche of dollar bonds of 2024
Extending ANPP`s lifetime until 2036 will lay solid foundation for  smooth transition to new power unit - Pashinyan at Nuclear Energy  SummitExtending ANPP`s lifetime until 2036 will lay solid foundation for  smooth transition to new power unit - Pashinyan at Nuclear Energy  Summit
Armenia`s government approves order of quality prize awards Armenia`s government approves order of quality prize awards 
International Client’s Day at IDBankInternational Client’s Day at IDBank
Germany to provide loan for Armenia`s renewable energy sector Germany to provide loan for Armenia`s renewable energy sector 
2023 lending growth insufficient to prevent decline in profits -  Financial Rating of Banks of Armenia2023 lending growth insufficient to prevent decline in profits -  Financial Rating of Banks of Armenia
Iran interested in cooperating with Armenia in mining industry Iran interested in cooperating with Armenia in mining industry 
Armenian government plans to introduce SAFE format Armenian government plans to introduce SAFE format 
Service of Armenian ArCa cards in Russia and of Russian MIR cards in  Armenia to be suspended Service of Armenian ArCa cards in Russia and of Russian MIR cards in  Armenia to be suspended 
Termination of service of MIR cards. IDBankTermination of service of MIR cards. IDBank
Economic modernization programme portfolio AMD 228bln as of March 1,  2024Economic modernization programme portfolio AMD 228bln as of March 1,  2024
Mobile trade regulations to be in effect throughout Armenia Mobile trade regulations to be in effect throughout Armenia 
Official cites financial reasons for suspension of Fly Arna airline  operation Official cites financial reasons for suspension of Fly Arna airline  operation 
Subsidiary of Public TV of Armenia to have right to nationwide  broadcasting  Subsidiary of Public TV of Armenia to have right to nationwide  broadcasting  
About 700 Armenian heavy cargo trucks waiting to pass through Upper  LarsAbout 700 Armenian heavy cargo trucks waiting to pass through Upper  Lars
Armenian Economy Ministry, several U.S. government departments form  specific action program Armenian Economy Ministry, several U.S. government departments form  specific action program 
Public TV`s First News Channel to be broadcasted not only in Yerevan,  but also throughout countryPublic TV`s First News Channel to be broadcasted not only in Yerevan,  but also throughout country
Ardshinbank cardholders can now enjoy a 10% cashback!Ardshinbank cardholders can now enjoy a 10% cashback!
“G20/OECD Principles of Corporate Governance” workshop“G20/OECD Principles of Corporate Governance” workshop
ECC, EDB to coordinate funding of joint projects ECC, EDB to coordinate funding of joint projects 
Broadcasting of Russian TV channels to be discussed in Moscow soon Broadcasting of Russian TV channels to be discussed in Moscow soon 
Armenia to host World Wine Tourism Conference,Armenia to host World Wine Tourism Conference,
CBA forecasts 5.5% or 6.4% GDP growth for 2024 depending on inflation  rate  CBA forecasts 5.5% or 6.4% GDP growth for 2024 depending on inflation  rate  
Three Sad Stories about FraudstersThree Sad Stories about Fraudsters
Rafayel Gevorgyan: Armenia`s economic growth potential is 6%Rafayel Gevorgyan: Armenia`s economic growth potential is 6%
TEAM already has over 1 million mobile subscribersTEAM already has over 1 million mobile subscribers
Read more


Exchange rates
28.03.2024
RUB4.270.00
USD394.46-0.25
EUR425.62-1.93
GBP497.65-0.91
CAD290.11-0.27
JPY26.06-0.05
CNY54.57-0.05
CHF435.72-0.13