Out of 13 mines in Armenia, only seven are in operation- industry executives
YEREVAN, June 28. /ARKA/. Only seven out of 13 mining deposits in Armenia are currently operating, and the key reason is the unprecedented strengthening of Armenia’s national currency, the dram, against U.S. dollar and Euro, Armenia’s Public Television reported, citing executives of the industry.
The Armenian dram has appreciated against the U.S. dollar by mote than 20 percent and even more strongly against the euro since the start of the war in Ukraine in 2022 February.
"Armenian mining companies export and sell their concentrates and products in U.S. dollars, but pay taxes and other expenses in Armenian dram here. Costs have risen by 20%. Small and medium enterprises face certain difficulties because of this," said Lydian Armenia Executive Director Hayk Aloyan.
According to the latest statistical data, in May this year, the mining industry declined by 0.8% year-on-year due to natural and climatic changes, more precisely, due to the lack of water.
‘Several companies faced production problems because of that," Hovhannes Harutyunyan, Deputy Minister of Territorial Administration and Infrastructure explained.
Large mining companies and enterprises plan to introduce modern technologies (such as closed systems of water consumption), which will reduce the risks and decrease dependence on natural-climatic conditions.
However, according to Harutyunyan, there are other reasons why some of the deposits were shut down. "At one time different companies were awarded permits to carry out mining activities. However, some companies received permits not to develop, but to sell this or that mine. Those companies, which performed their duties in good faith remained and are still in operation," said the deputy minister.
He noted that those companies that are not actually operating or have not been active may be deprived of their license.
According to the National Statistics Committee, the mining industry accounted for about 21% of the total industrial output in the first four months of 2023. The volume of the output decreased by 4% from the same months of 2022 to 155.3bln drams ($1 - 386, 71). -0-
