ZCMC to hold instigators responsible - statement 

ArmInfo. In connection with the situation that has developed at the Zangezur Copper and Molybdenum Combine, the company has issued some clarifications. Let us recall that ArmInfo previously reported that a group of workers had declared a strike demanding a wage increase.  ZCMC CJSC  considered these demands unrealistic, and the actions of the strikers  were considered to be outside the scope of the Labor Code.

"As previously reported, in violation of the labor legislation of the  Republic of Armenia and labor contracts, on January 31, 2025, a  number of employees of ZCMC CJSC did not show up for work, did not  start their work duties, or left their workplaces with an ultimatum  demanding an unrealistic increase in wages, thereby sabotaging the  labor process in the Company. Taking into account the public outcry,  we provide some important facts and figures. We consider it necessary  to remind that the company's employees have previously organized  protests and unauthorized strikes demanding an increase in wages,  including during the periods before the change in the composition of  shareholders and the company's management, for example, in 2018.  Since September 2024, in order to institutionalize the principles of  payment of wages, as well as to level out social inequalities and  ensure a transparent remuneration system, the company initiated a  revision of wages based on industry standards and objective  criteria," reads the statement says.

In particular, the document notes that, as part of these changes,  after the revision of wages for forklift operators and their  assistants (in October 2024), the piecework portion of their wages  has already increased significantly. "Regardless of the changes  introduced since September, we consider it necessary to emphasize  that at the moment the average salary at ZCMC exceeds all indicators  in the industry. The average salary in the Syunik region is the  second highest after the capital, thanks to the industry and mainly  ZMMC. In order to avoid arbitrary interpretations on the topic of  current salaries, we will give some examples of current salaries at  the enterprise (AMD - minimum-maximum including taxes). The current  salary of an alotter, for example, is 399-594 thousand drams, a  mechanic - 329-580 thousand drams, an electric and gas welder -  359-609 thousand drams. The current salary of a conveyor operator in  the crushing and ore transportation shop is 450-480 thousand drams,"  the statement emphasizes.

It also indicates that truck drivers at the quarry are paid according  to the piecework system (km / trip).  Their average salary including  taxes is 1.10 million drams for transporting 90 tons of cargo, 1.372  million drams for 130 tons of cargo, 1.672 million drams for 180 tons  of cargo. In total, the average salary of drivers is 1.394 million  drams.

In addition, the statement emphasizes that all ZCMC employees  (including workers) and their family members, including their  parents, have health insurance, and expenses that are not reimbursed  by insurance companies are financed by the company's charitable  foundation. "All employees, using the vacation days provided to them  by law, can use discounted or free vouchers to rest homes in Armenia  and the region provided by the trade union. The company compensates  for the educational expenses of employees and their children.  Employees are provided with free transportation and meals. As part of  large-scale social projects, the company finances kindergartens,  sports clubs, medical institutions, a cultural center, numerous  events and hundreds of other social projects. Since over the past  day, the instigators of the protests have been spreading  misinformation about allegedly "beggarly" salaries and poor  conditions for compensation, we leave the above figures and  information for an objective assessment by the public. We also inform  you that no more than 7-8% of the company's employees are involved in  illegal actions. The trade union does not support the above actions,  assessing them as illegal and does not assess them as a strike.

In the interests of ZCMC CJSC and the overwhelming majority of the  company's employees, the company will exercise its rights to bring  violators to disciplinary responsibility to the fullest extent of the  law. ZCMC CJSC employs over 4,600 people and employment in the  company often solves exclusively a social issue in the region, not  always reflecting the real needs for the company's personnel. A huge  number of applications for employment are sent to the HR department  every day in conditions of rare vacancies. We are confident that most  of our employees value their work and the company's attitude and they  should not suffer from the actions of some irresponsible  instigators," ZCMC CJSC said in a statement.

for the third year in a row, the list of 1000 major taxpayers in  Armenia is headed by the Zangezur Copper and Molybdenum Combine. The  enterprise transferred about 102 billion drams to the state treasury  for 2024 (with an annual growth of 44%), of which 2.2 billion drams  are customs duties, 30.2 billion drams are direct taxes (including  profit tax, income tax), 2.7 billion drams are indirect taxes  (including VAT, excise tax).  In December last year, RA Prime  Minister Nikol Pashinyan reported on his Facebook account that ZCMC  transferred 33 billion 249 million drams to the state budget as  government dividends. "Please note that this is plus the taxes paid  as a share of the profit, because since 2021 the government has been  a shareholder of ZCMC, as I promised," the Prime Minister noted.   Earlier, Industrial Company JSC acquired 60% of ZCMC shares and on  September 30, 2021, donated 25% of its share to the Armenian  government. On March 24, 2022, the government received another 6.875%  of the shares as a gift, thus becoming the owner of 21.875% of the  shares or 1/5 of the share in the CJSC.  Zangezur Copper Molybdenum  Combine CJSC (ZCMC) is the largest mining company in Armenia. In  2023, the company topped the list of the largest taxpayers in the  country. The company operates the Kajaran copper-molybdenum deposit.  The ore supply is about 150 years. The company produces molybdenum  and copper concentrates. Molybdenum concentrate contains 50%  molybdenum, the copper content in copper concentrate is not less than  15%.