ArmInfo.The inspections at the Alaverdi copper smelter in Armenia were carried out as part of the annual scheduled inspection and were legitimate. This is stated in the explanations of the Inspectorate for Ecology and Minerals of the Ministry of Nature Protection of the Republic of Armenia in connection with the statement of "Armenian Copper Programme" (ACP - part of the Vallex Group of Companies) on suspending the operation of the Alaverdi Copper Smelter.
According to the press service of the regulator, the Inspection Body on Ecology and Subsoil had obligations to carry out scheduled checks in the current year. The inspection process, including the mechanism for calculating damage, is regulated by legislative acts. The inspection body does not have the right to independently determine the choice of components to be tested (sulfur anhydride, copper oxide, inorganic powder, etc.) or damage, and should be guided by the amount of permissible emissions established by law and a permit issued by a company authorized by the Ministry of Nature Protection. As a result of the inspections, the company was imposed an administrative fine in the amount of 300 thousand drams and about 378 million drams for environmental damage, which were accrued on the basis of formulas established by government decisions. In parallel with the administrative fine, the company was presented with an order to transfer emission data to the competent authority, the volumes of which are specified by the relevant permits and that also falls within the competence of the supervisor.
As a result of inspections conducted on August 13-23, it turned out that the company should have begun a gradual reduction in emissions of harmful substances in 2012-2017. For example, by October 1, 2016, sulfur dioxide emissions were to be reduced by 50%, and by October 1, 2017, by 90%. Similar measures were also envisaged for emissions of other materials. The company did not object to the submitted claims. However, the company did not carry out all the necessary actions or they were very inefficient, as a result of which they did not actually fulfill the established requirements. Moreover, on its own initiative, the Inspectorate appealed to the Armenian Copper Program with a proposal to carry out activities aimed at fulfilling the instructions, which, however, were not implemented. Under these conditions, the Inspectorate Authority considered it meaningless to provide long-term emission reduction instructions, instead offering the company to hold public discussions in Alaverdi, present the whole truth, which happened on October 1.
Earlier Vallex Group issued a statement about the reasons for suspending the Alaverdi Copper Smelter. According to the information, on October 19, the work of the Alaverdi copper smelter was suspended - the 4th time during its 250- year history. "The suspension of the activity of ACP has a number of reasons," the statement read. In particular, as of October 1, 2017, the enterprise's annual emissions of sulfur dioxide amounted to about 38 thousand tons, despite the permissible level of 5,600 tons. "The company paid 323 million drams to the budget against the above-mentioned emissions, and 340 million drams from January-September 2018. Part of these funds in the manner prescribed by law was returned to neighboring communities as compensation for environmental losses. At the same time, the cause of these emissions is technological, the only solution of which may be the construction of a modern copper smelting plant, which requires large investments based on the existing plant'', the statement read.
The company recalls that the State Inspectorate for Environmental Protection in August 2018 fined the plant another 380 million drams ($ 700,000) due to the results of inspections because of a serious violation of environmental legislation from July 2015 to July 2018. According to the instruction issued on the basis of this act, the company is required to reduce emissions by 90% until December 25 of the current year. The company today declares the practical impossibility of fulfilling the requirements prescribed by the environmental inspectorate.
"At the moment, we can report that, according to the results of various meetings and long negotiations with the Chinese side, there is a positive trend in the implementation of the program for the construction of a new copper smelter," Vallex informed, stressing that for the implementation of this "difficult" project government assistance is needed, for which a special working group was created in the government. At the same time, it is reported that in order to build a mining complex in Teghut, VTB Bank, in exchange for the loans provided, demanded that the assets and shares of ACP be laid down along with other guarantees. However, the legal processes related to the realization of the Bank's pledge rights to property have not yet been implemented. "We inform that the goal of all negotiations with the government is to find a solution that is beneficial for all parties, first of all, for our citizens. With all the problems associated with the operation of the enterprise, the company made the more difficult decision - to suspend the activities of the copper smelter and, according to the labor code order, terminate employment contracts with employees of the enterprise, "the statement read.
To note, Vallex Group CJSC 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 Cyprus based company, 100% of which voting shares in turn belong to Armenian Copper 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.