Armenia`s mining industry risks exhaustion by 2038 - ZCMC CEO

ArmInfo.Over the past 10 years, no new mining deposits have been discovered in Armenia, and  no new enterprises established, not even medium-sized ones. This is a serious challenge that requires urgent attention, according to Roman  Khudoli, member of the Board of Directors and General Director of  Zangezur Copper and Molybdenum Combine (ZCMC), speaking at the panel  discussion "Armenia's Mining Industry Today and Prospects" at the  international mining forum Mining Armenia Forum.

In this regard, Khudoli did not rule out the possibility that many of  the eight mining companies operating in the country will cease  production by 2038. "If nothing is done, the sector will exhaust  itself," noted the head of ZCMC. He emphasized the need for joint  work with the government, where relations should be built on trust  and cooperation, rather than finger-pointing.

Additionally, he pointed out the importance of conducting geological  exploration in Armenia, noting that a mine operator cannot resolve  such issues on its own. Despite ZCMC conducting such research itself,  Khudoli emphasized that a strong state strategy and policy are needed  to handle this burden. He stressed the need to establish an Armenian  geological service that would undertake the study of the country's  subsoil, future deposits, assessment of promising areas, geological  surveys, and other related activities.

Speaking about cooperation between the state and investors, the CEO  of ZCMC emphasized the importance of eliminating uncertainties. "If  there are clear rules-even if they are strict-they will find  investors willing to work within them. If the rules are vague, then  work will slow down and become more complicated. That's why I'm  talking about trust based on clear and specific rules of the game,  followed by all parties-the state, the community, and the subsoil  user. In such a case, this trust will generate significant growth,"  Khudoli noted.

According to him, Armenia's mining sector hasn't seen significant  growth in a long time. "Our industry is very inert; if we don't  address this, it will stop tomorrow. Yes, a few companies will  continue to operate, but the volumes will be different," he said.

The head of the Combine also highlighted  the importance of  implementing new formats. In his opinion, "we have, to some extent,  become hostage to the Soviet model, while there are well-functioning  standards elsewhere in the world-for example, in Canada and  Australia." "Concrete steps must be taken and deadlines for the  transition to these models must be set. Mining companies are well  aware that with deadlines and responsible persons, everything starts  to function." 

Note, according to the RA Statistics Committee, in January-July 2025,  mining and open-pit mining production volumes decreased by 1%  year-on-year, amounting to 265 billion drams. Metal ore mining  declined by 2% to 245.6 billion drams.

Recall , Zangezur Copper Molybdenum Combine (ZCMC) is the largest  mining company in Armenia. The company operates the Kajaran  copper-molybdenum deposit. The plant's ore supply is approximately  150 years. The plant produces molybdenum and copper concentrates.  Molybdenum concentrate contains 50% molybdenum, while the copper  content in copper concentrate is at least 15%. The plant's annual  production volume is approximately 22 million tons of ore. ZCMC's  share of global molybdenum production is approximately 3.8%.