Agarak copper & molybdenum plant to resume activities on July 1

AGARAK, June 29. /ARKA/. The Agarak-based copper and molybdenum plant will resume activities on July 1, RA Prime Minister Tigran Sargsyan said after the June 28 meeting with the plant’s management.

The premier quoted the owners of the enterprise as saying the government loan would help them avoid delays in salaries. “The company has promised to pay arrears of the May and June wages in two weeks,” the prime minister said.

The RA Government held a meeting in Kapan last Friday, approving a $44mln loan to three local mining enterprises. The government has agreed to extend five-year loans to Zangezour Mining and Armenia Molybdenum Production ($15mln each), as well as a four-year loan to the Agarak-based copper and molybdenum plant ($14mln).

Sargsyan said the credit funds would be allocated for procurement of state-of-the-art equipment to ensure the long-term competitiveness of the Agarak-based plant.

The premier ruled out salary problems from the social perspective. “We have agreed with the plant’s management that they should not employ less than 900 workers amid the global financial crisis,” Sargsyan said, adding the enterprise would allocate some $450,000 for monthly wages.

Touching upon other mining enterprises, the prime minister said the government attempts to boost exports and cut cost prices in order to make local mining enterprises competitive in the market.

“Taking into account high market prices of these enterprises, the loan is secured on their production means that comprise around 30% of the extended loan,” Sargsyan was quoted as saying.

According to the premier, this will help the government avoid possible losses and back the local mining industry amid the global financial recession.

The Ararat Gold Recovery Company, Sotk deposit (Zod Mine) and the Agarak-based copper and molybdenum plant are the main assets of the

GeoProMining private diversified resources holding company. Established in 2001, the group explores metals in Russia, Armenia and Georgia.—0--