Friday, October 12 2018 19:09

ArmInfo.The workforce of the Alaverdi copper-smelting copper smelter launched protest actions calling on the country's government to provide an opportunity for the enterprise to significantly increase sulfur dioxide emissions. Otherwise, the  fines imposed on the company by environmental supervisory authorities  make the operation of the enterprise unprofitable. The employees of  the enterprise on Wednesday passed a protest rally and even for a  short time blocked the interstate road leading to the  Armenian-Georgian border.

In connection with the holidays, ArmInfo correspondent was unable to  contact the management of the Vallex industrial group, which owns the  company, however, according to the information contained in social  networks, it becomes clear that the original ultimatum to the  government is connected with the position of the State Inspectorate  for Environmental Protection, which recently fined the plant 380  million drams ($ 700 thousand) due to a serious violation of  environmental legislation, adopted in 2005.  According to independent  observers, the position of the supervisory authority undoubtedly fits  into the fabric of the behavioral line governments aiming to regulate  the behavior of players in the country's mining industry, which,  until the April velvet revolution, tended to regulate some of their  "painful" issues with the state on the basis of informal agreements  that allowed to bypass certain standards in order to increase  production efficiency. Apparently, something similar happened at the  Alaverdi Combine and, according to a new approach, the company fined  the enterprise, gave it a 2-month period to comply with the emission  standard, for which the company simply was not ready. 

In an interview with the Public Radio of Armenia, plant manager  Lusine Mezhlumyan recently reported that the practical impossibility  of fulfilling the requirements of environmental inspectorate  requirements brings to the agenda the issue of shutting down the  plant, which employs over 600 people.  The problem is complicated by  the fact that the property complex of the enterprise is secured by a  loan of $ 500 million, previously received from VTB Bank for the  development of a large Teghut copper- molybdenum deposit, the  operation of which was also stopped due to environmental problems  even last year after the suspension of co-financing by one from  overseas lenders. Under these conditions, servicing a VTB loan  becomes extremely unaffordable for an enterprise and a serious  decline in the level of profitability of the Alaverdi plant, in fact,  may lead to its bankruptcy.

Experts with whom ArmInfo correspondent was able to talk, note that  the new government, despite the legitimacy of its position regarding  the inclination of mining enterprises to the need to strictly adhere  to environmental standards, cannot be cut off without thinking about  the undesirable economic, investment and social consequences.  Note  that the Alamerda copper smelter was built in the 50s of the last  century. Its modernization under the modern enterprise is extremely  difficult and inefficient. One solution to the problem of processing  copper raw materials inside the country is the construction of a new  plant of average capacity, the interest to which is shown by Chinese  investors. By a decision of Deputy Prime Minister of Armenia Tigran  Avinyan of July 12 of this year, a working group was established to  provide state support to the preparatory work in the framework of the  construction program of the new copper smelting plant by Armenian  Kopr Program CJSC (ACP), also part of the VallexGroup. According to  preliminary estimates, the investment value of the enterprise will be  about $ 80 million. The group included representatives of 4  ministries - economic development and investments, ecology, finance,  as well as energy infrastructures and natural resources. The work of  the enterprise will allow to get pure copper in Armenia, thanks to  which in the country it will be possible at least partially to  restore various related production.  Note that Vallex Group (Vallex  Group) was established in 1998 and unites 20 subsidiary and  affiliated companies. Among them, Teghut CJSC, founded in May 2006,  100% of the shares of CJSC belong to Teghut Investments Limited of  Cyprus, 100% of which voting shares in turn belong to Armenian Kopr  Program CJSC, which is fully owned by Valery Mejlumyan, and also CJSC  "Base Metals", operating the copper-gold deposit in the village of  Drmbon, Martakert region, NKR, Armenian Copper Program CJSC (ACP),  operating the Alaverdi Copper Smelter.