ArmInfo. The Armenian government plans to sell its 21.875% stake (1/5 of the total share) in the Zangezur Copper and Molybdenum Combine on the stock exchange through an initial public offering ( IPO).
Prime Minister Nikol Pashinyan shared these plans at a Cabinet meeting on December 19th. Pashinyan pointed out that last week ZMMC paid 33 billion 249 million AMD in dividends to the state budget. <This event is worth emphasizing, because nothing like this has happened in the country for more than 20 years,> he said.
He also highlighted that the mentioned amount does not include the taxes paid by the plant. ZMMC paid 73 billion 800 million AMD in taxes from January to November 2024. This means, the state treasury received a total of 107 billion AMD (about $ 276 million) in taxes. The Prime Minister noted that this figure has noticeably increased compared to the previous year. This increase was largely due to the growth in global metal prices. However, the fact that the RA government became a shareholder of the enterprise also contributed significantly to this increase.
In turn, the Minister of Territorial Administration and Infrastructure David Khudatyan noted that the plant ended 2023 with a net profit exceeding 294 billion AMD. Of this amount, 152 billion AMD were distributed as dividends, with the government receiving its share of 33.2 billion AMD. The remaining 142 billion AMD has not been distributed yet. The head of the State Revenue Committee (SRC,) Eduard Hakobyan, emphasized the increasing global sales of electric vehicles, indicating a continued rise in the demand for metals in the future.
Nevertheless, the Prime Minister emphasized the importance of the government utilizing its voting right to enhance the productivity of ZMMC. In this vein, Pashinyan believes that in the future, the population of Armenia should have the opportunity to purchase shares of the company, which will be facilitated through an open subscription to the company's shares. <In order to achieve this, the company needs to reach a completely different level of development and transparency, and the government must participate accordingly. In other words, these 21% of shares will be made available for public trading, allowing any individual in Armenia to invest their savings in them,> he explained. In this regard, Armenian Minister of Economy Gevorg Papoyan said that consultations with the plant's management have shown their readiness to work in this direction. They intend to invite a German consulting company to enhance the transparency of the company, improve the corporate governance system, and ultimately prepare for going public.
<Next year, in addition to the financial report, ZMMC will publish three more reports: on sustainable development, environmental protection and social responsibility. All reports will be audited by Big4,> Deputy Prime Minister of Armenia Mher Grigoryan noted, adding 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. The plant has an ore supply that will last for about 150 years. It produces molybdenum and copper concentrates, with the molybdenum concentrate containing 50% molybdenum and the copper concentrate containing at least 15%. According to the State Revenue Committee for January-September 2024, the Plant remains at the top of the list of 1000 large taxpayers of Armenia (as it was in the previous year). During this period, the plant increased tax payments to the state treasury by 59%, totaling 83.6 billion AMD. Of this amount, 1.7 billion was paid in customs duties, 26.6 billion in direct taxes (including profit tax, income tax), and over 2 billion in indirect taxes (including VAT, excise tax). On September 30, 2021, the Industrial Company JSC acquired 60% of ZMMC shares and donated 25% of its share to the Armenian government. On March 24, 2022, the government received an additional 6.875% of shares as a gift, making them the owner of 21.875% of shares or 1/5 of the plant's share.
It should be noted that on December 6, 2024, ZMMC presented its third sustainable development report (ESG Report). According to Armen Stepanyan, ZMMC Director for Sustainable Development, investments in social infrastructure are of great importance for the enterprise. The company focuses on subvention programs as a model in which all stakeholders participate. According to him, in 2023, the total amount of funds allocated for subvention programs was approximately 300-400 million AMD. There is an increased focus on environmental and labor safety issues. According to ZMMK information, the company's revenue last year amounted to 796.9 million USD.
