Government loan to help maintain development and jobs in Zangezur copper-molybdenum factory

YEREVAN, February 20. /ARKA/. The loan allocated by the Armenian Government to Zangezur cooper-molybdenum factory will be used for keeping the development of the enterprise on and for maintaining the jobs, Director of the factory Maxim Hakobyan said at Novosti International Press Center.

Armenian Government made a decision to extend a $10mln worth loan to Zangezur copper and molybdenum factory at its sitting yesterday. Armenian Minister of Finance Tigran Davtyan said that these investments are part of government efforts to overcome the world crisis effects.

Director of the factory said that four years ago the government and the stockholders signed an agreement on development of the field. According to him, implementation of the first stage of the program made production output grow by 50% over four years and helped create 400 new jobs.

“The amount allocated will be directed to implementation of the second part of the program, i.e. ensuring development, output growth, maintaining jobs and salaries,” Hakobyan said.

Investments in enterprise totaled about $330mln over the last four years, he said.

“We used these amounts mainly to purchase modern and high-efficiency equipment,” director of the company said.

Hakobyan also said that the government-provided funds will help to keep about 2,000 employees of 30 satellite enterprises. Besides, the program will ensure a 35% growth of molybdenum production and a 75% increase in cooper production. Permanent work will be provided to 10,000 people and another 200-300 new jobs will be opened by the end of this year or the beginning of the next year.

Under the agreement of privatization of a major Armenian mining enterprise, Zangezur cooper-molybdenum factory in Kajaran, the control stock (60%) of the company’s shares were transferred to the German “Cronimet”, 15% to “Pure Iron Plant” open joint stock company, 12.5% to “Armenian molybdenum production” CJSC and the remaining 12.5% to “Zangezur Mining” LLC.

The investment program of Zangezur cooper-molybdenum factory for 2005-2020 totals $240mln and is to be implemented in two stages – in 2005-2008 and in 2008-2020. The first stage investments are to total $157mln. The program anticipates modernization of open-cut mine, processing plant, tailing dump, outer networks and buildings, as well as protection of environment and labor safety measures. N.V. –0--