Armenian government hands its 15% equity in Zangezur combine over to trust management of ANIF
YEREVAN, Jan. 5. /ARKA/. The Armenian government has approved today a decision on handing over its 15% equity in the Zangezur Copper and Molybdenum Combine to the trust management of the Armenian National Interest Fund (ANIF).
In September 2021, the Russian Geopromining company had acquired 60% of the Zangezur copper and molybdenum combine and donated 25% of the shares (15% of the equity) to the Armenian government. The Office of the Prime Minister of Armenia was designated as the authorized body to manage the shares.
In early July, 2021, the Armenian parliament, dominated by Prime Minister Nikol Pashinyan’s Civil Contract party, approved a government proposal to impose a new 15% tax on exports of copper and other metals.
The approval came one day after law-enforcement officers raided the offices of the combine, whose board of directors comprised Vahe Hakobyan, a senior member of the opposition Hayastan bloc led by former President Robert Kocharyan.
Speaking at a Cabinet meeting today, Prime Minister Nikol Pashinyan said to many people this deal seemed dubious. “There were no doubts when the state was deprived of its main strategic asset for many years, but in what the state has gained, some people are trying to find traces of corruption. I want to clarify that as a result of corruption, the state does not gain, but loses. And we were observing this for years, because since the 2000s people affiliated with the state became the owners of Zangezur Copper and Molybdenum Combine. Now there is a reverse process and the owner of 15% of shares is the Prime Minister's Office," Pashinyan said.
ANIF said today in a statement today that its mandate includes participation in the management of strategic assets of Armenia, in cases when the investor wants to have a state participation.
‘In the mining industry, especially in developing countries, it is common practice for mining companies, to offer a small stake to the host country out of goodwill for common value creation and fair distribution of benefits,’ it said.
‘We hope that this cooperation will be the beginning of new economic opportunities, making the balance of the state, public and investor interests a priority. In this context, the willingness of all parties, including other stakeholders, to take steps to improve sustainability performance and implement best mining practices is of particular importance. We are convinced that this is a precondition for the effective management of the mining sector in the modern world,’ it said.
The Zangezur Copper-Molybdenum Combine is one of the largest companies in Armenia, which topped for years the list of Armenia’s 1000 largest corporate taxpayers. The combine is located in the town of Kajaran, developing the Kajaran copper-molybdenum deposit.
According to experts, there is enough copper ore for the combine to develop the deposit for another 150 years. -0-
