Armenia to introduce export duties on copper concentrate and molybdenum

YEREVAN, July 13. /ARKA/. The Armenian government approved July 12 a set of amendments to the Law on State Duty, saying the amendments were prompted by the need to regulate foreign trade in goods which are of strategic importance for the country- copper and molybdenum concentrates as well as ferromolybdenum.

According to the government, world prices for non-ferrous metals have been on the rise for a protracted period of time, creating favorable conditions for the mining industry of Armenia. It said international copper prices have been steadily increasing since April 2020 (the price of copper has grown from $7,500 in December 2020 to $9,225 for one ton).

The price of molybdenum has been stable at $24,000 since 2018. According to studies, most of the copper mines in Armenia are profitable at a copper price of $5,300, and even after paying state fees when the price is $7,500, the sector remains quite profitable.

According to the proposed amendments, high profits from the exploitation of the country's subsoil will be directed to the development of the manufacturing industry, strategic assets in the mining sector and deepening production value chains.

Specifically, the plan is to deepen the copper value chain by first establishing high purity copper cathode production and then helping to rapidly develop an ecosystem of related products.

According to the government, the amendments are a temporary solution pending a complete and in-depth revision of the sector-related policy.

In the long term, it is planned to revise the tax policy of the industry in order to ensure effective taxation of excess profits from the use of the country's subsoil.

Minister of Economy Vahan Kerobyan stated that the government decided to introduce export duties on some by-products - concentrates of copper and molybdenum, as a result the government will receive 30-35 billion drams additionally in revenue. ($1 - 495.88 drams). - 0-