Saturday, February 16 2019 13:40

ArmInfo.The Government of Armenia is interested in the speedy resolution of the problem of the Alaverdi Copper Smelting Plant and the restoration of production. This was stated by Deputy Prime Minister Tigran Avinyan at a meeting with  employees of the company, who recently spoke with another protest  demanding to provide them with jobs.

MP of the National Assembly of Armenia from the city of Alaverdi Ara  Mkrtchyan and Governor of the Lori region Andrey Ghukasyan also  attended the meeting. 

To recall, on October 19, 2018, the company suspended production of  blister copper due to serious violations of environmental regulations  and due to problems with non-performance of credit obligations. As  part of the requirements of the Labor Code, notifications of staff  reductions were submitted to all company employees by the end of  October. In February, the Council of Elders of the city sent a letter  to the Prime Minister, in which the deteriorating socio-economic  situation in the city was presented day by day and asked to freeze  the credit obligations of the plant employees who had been left  without work, and also determine the future of the enterprise itself.

Tigran Avinyan informed that the issue of the fate of the Alaverdi  Copper Smelting Plant remains one of the priorities for the  government, which is interested in preserving jobs. But the main  problem lies in the dispute between two hostile entities - the ACP  (Armenian Copper Program) company owning the plant and the Russian  VTB bank, which had previously provided the company with a large loan  for the development of the Teghut copper and molybdenum mine, whose  operation was also terminated due to environmental problems as far  back as last year after the suspension of co-financing by one of the  foreign lenders Under these conditions, loan servicing becomes for  the Vallex group of companies, which owns ACP, an extremely  unaffordable and a serious decrease in the level of profitability of  the Alaverdi plant, in fact, may lead to its bankruptcy.

Avinyan informed that negotiations are underway between the Russian  bank on the further activities of the copper smelter. Interested in  resolving the dispute, the government mediates these negotiations,  tries to create an environment of mutual trust and makes every effort  to bring each other's positions closer together.

During the meeting, an agreement was reached that the plant's  employees would have direct contact with the Deputy Prime Minister's  office in order to receive current information on the state of  affairs.