ZMMC CSO Director: In the coming years, the mining industry will have a positive impact on the Armenian economy

ArmInfo. In the coming years, the impact of the mining industry on the Armenian economy is expected to be positive. This is not only due to the functioning of ZMMC, but also because of external factors at play. This was stated by Armen Stepanyan, CSO (chief sustainability officer) of Zangezur Copper and Molybdenum Combine (ZMMC) on December 6 during a meeting with journalists on the publication of the third report on sustainable development.

He noted that the impact is largely influenced by the prices of metals in the global market, and depending on their fluctuations, the impact can be either high or low. "Many expect that copper and molybdenum prices may rise in the coming years. One of the factors influencing this is the active transition to green energy. Copper's significant role in this transition is a major reason for optimistic positive forecasts. As for molybdenum, expectations are restrained, but also positive," Stepanyan noted.  Having reported that the share of the mining industry in Armenia's GDP is 5-7% (for 2023), Stepanyan expressed hope for the expansion of existing deposits and the exploitation of new ones.  Speaking about the sustainable development report itself, Stepanyan explained that this is a form of accountability to the public in three areas: environmental responsibility, social responsibility and management systems.

"This is an accepted format not only in our field, but also in all areas that consider themselves responsible and understand the importance of  informing  the public. ZMMC is a mining company, which implies the existence of such a need. All indicators suggest that such formats are needed to ensure accountability to society and we have been following this for three years now," he added.  The ZMMC Sustainable Development Director also said that the company is working on rectifying all inaccuracies, based on international experience. "A lot of work is being done in this direction. There are no unexpected risks, we simply need to focus on improving our management mechanisms and methods," he emphasized.

Touching on the communities, he added that investments in infrastructure are crucial for them. "We focus on subvention programs, as this is a working model where all stakeholders participate," Stepanyan noted, recalling that by the end of 2023, the cost of subvention programs amounted to 300-400 million drams. He also noted that a slightly smaller amount is expected in 2024. Discussing the changes in the company, he emphasized the importance of labor safety, adding that this issue receives special attention due to the significant increase in the number of incidents. "The higher the accountability, the clearer the picture becomes and areas for improvement are identified. In 2023, we had 11 accidents, and in 2024 - 12, but the number of lost days has decreased. There have been improvements in dust protection, but more needs to be done, as most of the complaints from our community are related to this issue. In 2024, we will continue to work in this direction, but monitoring already shows an improvement in the situation," Stepanyan concluded.

It should be noted that Zangezur Copper Molybdenum Combine CJSC (ZMMC) is the largest mining company in Armenia. In 2023, the company topped the list of the country's largest taxpayers. The plant operates the Kajaran copper-molybdenum deposit, with ore supply estimated to last about 150 years. The plant produces molybdenum and copper concentrates, with molybdenum concentrate containing 50% molybdenum, and  copper concentrate containing at least 15%. According to the Statistical Committee of the Republic of Armenia, the mining industry in Armenia reduced its volumes in 2023 by 6.4%, amounting AMD 463.2 billion ($ 1.3 billion). Statistical data for January-October 2024, shows a further decline  of 8.1%, totaling AMD 394.3 billion  ($1 billion).