“Cronimite Mining”: construction of biggest ore-processing mill in region to be completed by end 2010

YEREVAN, July 31. /ARKA/. Construction of the biggest ore-processing mill in the region is expected to be completed by the end of 2010, reports Hrachya Grigoryan, head of representative office of Cronimite Mining (parent company of Zangezur copper-molybdenum factory cjsc) in Armenia.

The new mill will allow bringing the annual yield up to 14 million tons, says the report.

Apart from this, a steam and a transformer stations, as well as a water reservoir to ensure environment-friendly water supply to the factory are to be built.

All these investments will enable the factory maintaining its leading positions on the world market.

Despite the continuous financial and economic crisis, Zangezur copper-molybdenum factory continues uninterrupted production owing to farsighted business and investment policy, financial support of the stockholders and flexible sales strategy followed by Cronimite parent company on the world market, says the press release.

Support of Armenian government also largely facilitated stable development of the factory and helped implement social programs and retain the jobs.

In 2004 the stockholders approved an investment program for over 200 million USD to modernize the factory, raise the productivity and bring the ore processing volume up to 12.5 million tons per year. The program was successfully completed in October 2008.

Owing to investments and additional financial support from Cronimite Mining, Zangezur factory is now able to resist fluctuations on global markets, Grigorayn said.

All jobs a re retained and salaries are paid in time, he said. he flexible sales system allowed Cronimite companies’ group fully making up for losses from fall in demand for molybdenum and redirect the ready product from the European markets to Asian ones.

As a result of the investment program, the product prime cost went down: this, together with rise in world prices allows implementing the next planned investments, Grigoryan said.

Cronimite is a group of companies operating throughout the world. Since December 2004 Cronimite Mining has been holding 60% of the shares of Zangezur copper-molybdenum factory cjsc. Other stockholders are Armenian Pure Iron Factory (15%), Zangezur Mining llc (12.5%) and Armenian Molybdenum Production company (12.5%). –0—