Armenia`s dividends from ZCMC $113mln since 2022

ArmInfo. The Republic of Armenia received about 44 billion 406 million drams ($113 million) in dividends for owning 21.87% of the shares of the Zangezur Copper and Molybdenum Combine (ZCMC). Prime Minister Nikol Pashinyan announced this on July 3 on a social network.

"This week, the Zangezur Copper and Molybdenum Combine paid dividends  to the state budget of the Republic of Armenia in the amount of 11  billion 156 million drams for the year 2024. The Republic of Armenia  received about 44 billion 406 million drams (113 million US dollars)  in dividends starting from 2022," he wrote.

Earlier, Industrial Company JSC acquired 60% of ZMMC shares and  donated 25% of its share to the Armenian government on September 30,  2021. 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 plant.

In December 2024, Nikol Pashinyan reported from his Facebook page  that ZMMC 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 ZMMC, as I promised," the Prime  Minister noted.

As a result, ZMMC, which for many years occupied a leading position  in the list of the largest taxpayers in Armenia, was not included in  it in the first quarter of this year. Meanwhile, ZMMC topped the list  of 1000 largest taxpayers in Armenia based on the results of 2024.  The plant took first place in this list for four years in a row.

In this regard, the company's press service issued a separate  statement. "ZCMC is an organization for which a significant part of  the taxes paid are direct taxes: income tax and royalties, unlike a  significant part of large taxpayers for which a significant part of  the taxes paid is VAT. Advances on royalties calculated and paid  based on the results of 2024 were returned to the company in the  first quarter, as a result of which the total difference in the first  quarter was 19.5 billion drams. Therefore, it is not possible to  assess the level of ZCMC taxes based on the indicators of the first  quarter; they should be considered on an annual basis, since real tax  payments will be fully visible at the end of the year. The adjustment  of tax advances for the previous year is made in the first quarter  based on the final report. Naturally, the taxes paid by ZCMC on a  semi-annual basis will be reflected in the next quarter, and on an  annual basis the company will undoubtedly once again take a leading  position in the list of the 1,000 largest taxpayers," the statement  said.

In turn, the head of the State Revenue Committee of Armenia Eduard  Hakobyan, on June 9 of this year, stated in parliament that, based on  the results of 2024, ZMMC recorded a decrease in sales volumes  compared to 2023, due to which the amount of royalties payable in  2025 decreased. In addition, since the company made significant tax  advance payments in 2024, part of the amount paid was returned in the  first quarter of 2025. If I am not mistaken, 21-22 billion drams were  returned, due to which ZMMC technically dropped out of the list of  1000 largest taxpayers. This does not mean that the company will not  be on this list in the next quarter, the chief tax officer pointed  out.

The Zangezur Copper Molybdenum Combine CJSC is the largest mining  company in Armenia. The plant operates the largest copper-molybdenum  deposit in the region, Kajaran.