The state will support the "Armenian Copper Program" in the  construction of a new copper smelter

ArmInfo. By decision of the Deputy  Prime Minister of Armenia Tigran Avinyan, on July 12, a working group  was set up to provide state support to the preparatory work for the  construction of a new copper smelter by the Armenian Copper Program  CJSC (part of the VallexGroup structure), EcoLur reports.

The composition of the working group has already been approved,  headed by the head of Avinyan's office Varag Siseryan. It included  representatives of four ministries - Deputy Minister of Economic  Development and Investments Avag Avanesyan, Deputy Minister of  Environment Gnel Sanosyan, Deputy Finance Minister Arman Poghosyan  and Deputy Minister of Energy Infrastructures and Natural Resources  Vardan Gevorgyan. ArmInfo's attempts to verify the reliability of the  information were unsuccessful. It should be noted that ZAO "Vallex  Group" was established in 1998 and unites 20 subsidiaries and  affiliated companies. Among them, Teghout CJSC, founded in May 2006,  owns 100% of the shares of CJSC TehoutEnvestments Limited, of which  100% of voting shares are owned by Armenian Copper Program CJSC,  owned entirely by Valery Mejlumyan, the president of the group, and  CJSC "Base Metals", which operates a copper-gold deposit in the  village of Drmbon in the Martakert region of the NKR, CJSC Armenian  Copper Program (ACP), which operates the Alaverdi copper smelter,  which produces blister copper. The program on exploitation of the  Teghut copper-molybdenum deposit was approved by the Armenian  government in November 2007. By reserves, the Teghut deposit is the  second in the republic after the Kajaran copper and molybdenum  deposit in Syunik. Back in 1972, large-scale geological exploration  work was carried out here, which confirmed the reserves of 450  million tons of ore containing 1.6 million tons of copper and 99,000  tons of molybdenum. At the same time, the largest Teghout project due  to environmental problems at the end of last year was suspended. The  exploitation of the field can be continued only after solving a  number of technical and environmental problems, because of which the  company, in fact, lost credit support.

Back in March 2018, ArmInfo informed that Ambassador of the People's  Republic of China to Armenia Tian Erlong and former Minister of  Energy and Natural Resources of Armenia Ashot Manukyan paid special  attention to the project of building a copper smelter in Armenia.  Nevertheless, discussions on this topic have been ongoing for a  couple of years. Chinese investors proposed a joint project in which  Vallex Group participates from the Armenian side, from the Chinese  side it is about the participation of MCC Overseas in the project,  and possibly China National Building Materials Group Corporation,  Sinoma International Engineering. With the Chinese partners, the  Armenian government is also negotiating in the direction of setting  up enterprises for the production of cement, glass and pearlite  materials. The Armenian government established an interdepartmental  group last year to discuss issues of assistance in the construction  of the Armenian Copper Programs.

Meanwhile, plans for the construction of a copper smelting plant in  Syunik region first appeared in Armenia in 2005-2006. An office was  set up, which began to work out concrete calculations. Then the total  cost of the project was estimated at $ 200-250 million. The  processing capacity of the plant was to be 60,000 tons per year.  According to experts, the new plant would allow processing all the  copper concentrate produced in Armenia. The implementation of this  project could revive the machine-building and machine-tool industries  of the economy. According to the project, the plant was a unique  project, using the technologies of copper concentrate processing  hydrometallurgical method, which eliminates emissions of harmful  substances into the atmosphere. With the onset of the global  financial crisis, the project was suspended. At the same time, as the  Russian press reported, the main place of remelting of copper  concentrate from Armenia in the 2000s was Bulgaria (where the smelter  of the German metallurgical concern is located). China's share about  5 years ago was relatively small (within 20%), but in subsequent  years it began to grow. In 2015, deliveries to Switzerland and Spain  ceased and slightly increased to Serbia (where the Bor Mining and  Metallurgical Complex, one of the largest in the region, opened in  the spring).  Let's notice, that China actively buys copper  concentrate from all world.