Gnel Sanosyan: ZCMC transaction has become good example for other  minerals developers

ArmInfo.The performance of the Zangezur Copper Molybdenum Combine is impressive. Minister of  Territorial Administration and Infrastructures Gnel Sanosyan stated this on April 20 at an extraordinary session of the RA National Assembly.

According to him, only last year ZCMC paid about 144 billion drams in  taxes. For comparison, the minister cited the volume of tax  deductions of the company in 2021, which amounted to 48 billion  drams. Such a significant growth, as the minister noted, is connected  with the participation of the government in the authorized capital of  ZCMC. "The quality of management of the plant has improved by joint  efforts, the Cabinet of Ministers is assisting the enterprise on many  issues," Sanosyan emphasized, adding that the current management  model of ZCMC justifies itself.

At the same time, he pointed to the rise in world prices for metals.  "I hope that in the future the management model will be constantly  improved, and world prices will be at such a level that the company  will receive large profits and make large-scale tax deductions to the  country's budget," Sanosyan said.

He added that the deal with ZCMC has become a good example for other  companies - minerals developers, who saw how the state, implementing  a flexible policy, can contribute to the development of companies and  the sector as a whole.

There are already such companies that offer the state part of the  shares, hoping that the Cabinet of Ministers will assist them on a  number of issues. A clear example of this is the recently signed  memorandum with the Lydian company, which is developing the Amulsar  gold mine, according to which the government will receive 12.5% of  the company's shares.

Industrial Company JSC, affiliated with GeoProMining, which has been  operating in Armenia for over 15 years, acquired a 60% stake in ZCMC  and donated 25% of its share to the Armenian government on September  30, 2021. On March 24, 2022, the government received a gift of  another 6.875% of the shares, thus becoming the owner of 21.875% of  the shares or 1/5 of the share in the plant.