ArmInfo. Armenia is actively negotiating with China on the construction of a copper smelting complex in the republic. This was announced on February 24 at a meeting of the RA National Assembly Commission on Regional and Eurasian Integration by Chairman of the State Revenue Committee (SRC) of the Republic of Armenia David Ananyan, who presented a draft agreement on the exchange of information on goods and vehicles of international transportation moving across the customs borders of the Eurasian Economic Union ( EAEU) and the People's Republic of China (PRC).
According to David Ananyan, the negotiations with the Chinese side were permanent, either pausing or resuming. From the end of last year, they resumed with renewed vigor. The head of the Committee noted that the construction of a smelter involves attracting large investments, and this requires an economically sound project. In this context, various options are being considered, including the possibility of creating a consortium of large Chinese companies.
The chairman of the SRC emphasized that the share of exports of Armenian products to the Chinese market is made up of ore concentrates.
Thus, in 2018, imports of Chinese goods to Armenia amounted to $ 376.5 million, and in 2019 this figure increased to $ 453 million. Moreover, the first 10 largest groups of goods in 2018 accounted for 25.3% of the turnover, in 2019 - 24.7%.
On a large scale, shoes ($ 24 million), tires ($ 14.3 million), equipment for washing natural stones ($ 13.3 million), as well as cell phones, diode transistors, etc. are supplied from China to Armenia in the 10 largest groups of goods. In 2018, the export of Armenian products to China turned out to be at the level of $ 97.5 million, of which 99% of all exported products accounted for ore concentrate. In 2019, export volumes increased to $ 186.1 million, of which the specific gravity of ore concentrate again turned out to be predominant - 99.8%.
In this regard, as David Ananyan noted, the construction of a smelter is becoming a priority for Armenia, which will allow exporting not concentrate, but finished products.
Earlier, ArmInfo reported that discussions began in Armenia on conducting research on the principles of public-private partnership with the participation of the largest Armenian market players - Zangezur Copper-Molybdenum Combine, Vallex Group, Teghut CJSC, Akhtalin and Agarak Copper-Molybdenum Combines. In order to avoid risks, it was decided to conduct in- depth and comprehensive studies in order to develop a serious feasibility study for the project. The Armenian authorities express the hope that it is the Armenian companies that will order further research.
It should be noted that Chinese investors showed interest in building a new, modern copper smelter in the Armenian city of Alaverdi. At the end of October last year, the office of the Deputy Prime Minister announced that the Chinese company Citic was interested in the project to build a new copper smelter in the city of Alaverdi, equipped with new technologies that almost completely neutralize emissions, and was ready to discuss further details. It was agreed that in the near future a delegation of the Chinese company will visit Yerevan to continue negotiations.
To note, Citic or formerly the China International Trust Investment Corporation is one of China's largest state-owned investment corporations, which was founded in 1979. The company conducts activities in the field of financial services, resources, energy, manufacturing, engineering, real estate, etc.
Meanwhile, in July this year Vallex Group of Companies issued a statement in which it welcomed the statement of the lawmaker from the ruling bloc "My Step" Aren Mkrtchyan, made at a parliamentary hearing on July 19 that VTB Bank was ready to donate to the Armenian state the property complex of the Alaverdi plant, which was transferred to the bank as collateral.
Information appeared on the market that the Teghout copper-molybdenum mine was already sold by the bank or transferred to the management of the investor in the person of the Russian Copper Company, one of the shareholders of which is Russian businessman Norayr Petrosyan. After resolving the issue of neutralizing the environmental risks associated with strengthening the tailings dam, the field, around which disputes have not subsided for many years, will be re-activated.
It should be noted that the property complex of the Alaverdi smelter producing crude copper is secured by a VTB Bank loan of $ 380 million, which was granted to the Vallex group of companies for the development of the large Teghout copper-molybdenum deposit, which was discontinued due to environmental problems as early as last year after the suspension of co-financing by one of the foreign lenders. In these conditions, credit servicing became extremely unbearable for the group.
Moreover, at the beginning of this year, the blast furnaces of the Alaverdi enterprise itself were also extinguished due to serious environmental risks. Previously, the company worked to circumvent stringent environmental rules through informal agreements with relevant government agencies to ensure the production and export of blister copper and to preserve jobs. However, the new government, worried about risks, set stringent conditions and the company had to be stopped.
To recall, the Vallex Group CJSC was established in 1998 and until recently had united 20 subsidiary and affiliated companies. Among them were Teghout CJSC, founded in May 2006, 100% of the shares belonged to the Cypriot Teghut Investments Limited, 100% of the voting shares of which in turn were controlled by the Armenian Copper Program CJSC (ACP), wholly owned by the group's president Valery Mejlumyan , as well as Base Metals, which operates a copper-gold deposit in the village of Drmbon, Martakert region of the NKR. ACP also operated the Alaverdi Copper Smelter, where raw materials from the group's fields were delivered for rough processing.
Over the past 2-3 years, the Vallex Group has been negotiating with Chinese investors to create a new, modern, environmentally friendly metallurgical enterprise on the site of the old Alaverdi plant, which has 200 years of history. However, the results of the negotiations are not yet known. It is only known that by the decision of the Deputy Prime Minister of Armenia Tigran Avinyan on July 12 last year, a working group was created to provide state support to the preparatory work as part of the program for the construction of a new smelter by the Armenian Copper Program CJSC. It was reported that the composition of the working group has already been approved, which will be headed by the head of the office of Avinyan Varag Sisserian. It included representatives of 4 ministries - Deputy Minister of Economic Development and Investment Avag Avanesyan, Deputy Minister of Nature Protection Gnel Sanosyan, Deputy Minister of Finance Arman Poghosyan and Deputy Minister of Energy Infrastructures and Natural Resources Vardan Gevorgyan. ArmInfo has not yet succeeded in attempts to verify the accuracy of the information and find out the details of the negotiations.