Armenian Prime Minister: National wealth must be used in a way that  both the state and society benefit 

ArmInfo.At August 23, the Armenian government approved an action plan to ensure the implementation of the concept of development of the mining industry.

Minister of Energy Infrastructures and Natural Resources Artur  Grigoryan who presented the draft decision, noted that "Economic  analysis of Armenia's mineral resources management and its impact on  sustainable development'' program will be developed  by the end of  December 2019. The World Bank, with which the relevant agreement has  already been signed, will provide the country with the necessary  financial resources in the form of a grant for the implementation of  the project. Taking into account this circumstance, the terms of the  already approved action plan had to be changed from December 2018 to  December 2019. The Minister stressed that, despite the importance of  the subsoil management , nevertheless, it still does not have a clear  policy and strategy, which would have provide the vision of further  development of the mining sector. It is planned, in particular, to  adopt a development strategy of the sector, for the development of  which it is necessary to study certain criteria. In his turn, RA  Prime Minister Nikol Pashinyan reminded that the mining sector is the  main engine for the growth of the Armenian economy. At the same time,  he stressed the need to change the economic model that would allow  diversifying the country's economy. The Prime Minister noted that the  growth of the mining industry does not affect the well-being of  citizens. He called for greater control over the field. "National  wealth should be used in a way that both the state and society  benefit," the Armenian government Head said.

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. This issue was also  touched upon by Prime Minister Nikol Pashinyan. On July 5, during a  visit to Syunik region, he said that, in case of having necessary  facts, the Armenian government will take a decision on the mining  sector. The head of government stressed that in Armenia the subsoil  resources of the country were being destroyed, and the economic  growth of the country depended on the world prices for copper. "I  think this is a problem, but I do not think that the mining industry  should be shut down. I gave instructions to conduct research on all  polymetal deposits to ensure their 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 adopt this or that  decision. I, as prime minister, do not have the right to just make  decisions about closing a mine. "To make a decision it is necessary  to collect facts that must be undeniable and on the basis of which  decisions will be made, "Nikol Pashinyan stressed. He added that he  does not have any corrupt obligations with any of the mines.  To  note, at the state balance of mineral resources, more than 670  deposits of solid minerals with confirmed reserves, including 30  metal deposits,  are currently registered. About 400 of these  deposits are exploited, including 22 metal ones. There are 7  copper-molybdenum deposits, 4  copper, 14 gold and gold-polymetallic  deposits, 2 iron ore and 1  aluminum ore on metallic minerals.  To  note, Armenia also occupies one of the leading places in the world  for the richness and diversity of nonmetallic ore reserves. According  to independent observers, the previous authorities had special  agreements with subsoil users who, using their offshore companies,  sold them ore concentrate at a low price. And the authorities, in  turn, resold it at market prices to end-users. Thus, the republic  received less than half of the profits from the sale of minerals.  This predatory mechanism, as a rule, is blocked in international  practice by a high level of royalty, which makes the use of such  schemes unprofitable. In Armenia, in connection with non-gratuitous  agreements with the previous authorities, the level of royalties was  extremely low, which created a favorable ground for concealing the  real incomes of companies and the active use of offshore schemes for  this.