Thursday, October 7 2021 17:04

ArmInfo.The share of the Armenian government in the projects planned by the new shareholders of the country's largest Zangezur Copper-Molybdenum Combine (ZCMC) at all stages of their implementation will be at least 25%.

As Prime Minister of Armenia Nikol Pashinyan noted, speaking in  parliament the night before, since 2000 to this day, for the first  time, the Republic of Armenia and the people of Armenia have become  co-owners of ZCMC. "This is an accomplished fact, and I am sure that  this share will increase, but to such volumes so as not to deform the  market essence of our country's economy," the head of government  stressed.

Pashinyan noted that when it was announced that the government had  become a co-owner of ZCMC, there were different opinions, in  particular, regarding the fact that this is a dark and dubious deal.  <But this would be so if the owner of 15% was not the government, but  an offshore company, which would belong to another offshore company,  which in turn would belong to one of the members of the government's  family.  Meanwhile, there are people in this room who, in the course  of their activities, concluded such deals, and I think that our law  enforcement agencies should seriously address this issue, "he said.

At the same time, Pashinyan emphasized that this proposal from one of  the owners of GeoProMining, the head of its Board of Directors (Roman  Trotsenko - Ed. note) fully coincides with the state and economic  interests of Armenia, and includes 2 important components.

As the head of the government explained, the construction of a copper  smelter will allow Armenia to export not concentrate, but the metal  itself. Secondly, part of the program is the construction of a new  small nuclear power plant (115 MW), where government participation is  very important.

In this context, he noted that the government is facing the task of  launching the construction of a copper smelter by June 2025, and  trying to make sure that construction work on the nuclear power plant  starts in parallel with this.

"We have the opportunity to secure investments for $ 4-6 billion in  the next 5 years. Serious work must be done in order not to miss this  prospect. Realizing this opportunity presents a serious challenge for  us, "he said.

At the same time, Pashinyan noted that it is important for investors  that during the process, the tax legislation of the Republic of  Armenia becomes a guarantee for investors to a certain extent, so  that no significant changes are foreseen in the visible future, which  will allow investors to calculate their investment plans. <The tax  field should also serve the interests of Armenia. We are currently  working on a royalty system. I think we will introduce a fair system  so that in the event of a significant increase in metal prices, the  expectations of the people of Armenia are justified, and in the event  of a drop in prices, investors would have protection, a safety  cushion, so that the blows associated with market fluctuations would  be tolerable for them>,  explained the Prime Minister.

Earlier it was reported that the Russian JSC Industrial Company,  which is a 100% subsidiary of GeoProMining Armenia, became the new  owner of 60% of ZMMC. On September 30, the RA government approved the  decision to accept as a gift 25% of shares of Industrial Company JSC,  which make up 15% of the total capital of ZMMC. As stated in the  joint statement of GeoProMining and the Government of Armenia, member  of the Board of Directors of GeoProMining Roman Trotsenko announced  plans to expand cooperation with the Government of the Republic of  Armenia, and this is the first step within a broader investment  vision. "All this will benefit the Republic of Armenia, the people  and our shareholders, as well as open up new opportunities for the  Armenian economy. We intend to begin construction of a new copper  smelter in Armenia in the coming years," Trotsenko said.

It should be reminded that GeoProMining Group of Companies  (GeoProMining) entered Armenia in 2007, with the acquisition of GPM  Gold, which operates the Sotk gold deposit and the Ararat gold  recovery plant.  Then the company acquired the Agarak  Copper-Molybdenum Combine. The company has invested about $ 400  million in the Armenian economy and has become the largest private  industrial investor in Armenia.  The investments were aimed at  technical re-equipment and technological modernization of two  enterprises.

Zangezur Copper Molybdenum Combine CJSC (ZCMC) is the largest mining  company in Armenia. The combine exploits the Kajaran  copper-molybdenum deposit. The plant has been supplied with ore for  about 150 years. The plant has been producing molybdenum and copper  concentrates. 50% molybdenum, copper content in copper concentrate -  not less than 15%.