MINISTRY OF ENERGY INFRASTRUCTURES AND NATURAL RESOURCES OF THE REPUBLIC OF ARMENIA
MINISTRY OF ENERGY INFRASTRUCTURES AND NATURAL RESOURCES OF THE REPUBLIC OF ARMENIA
On March 20, the RA Minister of Energy and Natural Resources Yervand Zakharyan has held a Conference with the leaders of the companies implementing metal mineral extraction works in the territory of the country.
The purpose of the meeting was to discuss the problems of the fulfillment of contractual obligations and the current situation with the mining exploiters.
The leaders and representatives of 20 mining companies participated at the meeting, among them the <Geo Pro Mining Gold> LLC, <Dundee Precious Metals Kapan> CJSC, < Sagamar> CJSC, <Mego Gold> LLC, <Akhtala Mining Plant> CJSC, <Agarak CMC> SJSC and <Teghout> company.
The most important issues discussed, perhaps, were the fulfillment of contractual obligations, the payment of royalties, physical volumes and the required investments making issues by the mining companies.
According to the data, in the state cadastre of the mines and developments maintained by the RA Ministry of Energy and Natural Resources, 870 mines are registered at present, of which 38 are metal.
For the purpose of the extraction of minerals 27 metal mineral mining rights are currently provided, of which 11 of gold, 5 of gold-polymetallic, 7 of molybdenum and copper, 2 of copper, 1 of molybdenum and 1-of iron.
- Only the 10 of 27 companies having acquired the mining right have launched the economic activity, and this is not completely. In the other cases nothing is being done.
- The contractual obligations are not fulfilled, and the investments are not carried out, of which the economy is heavily affected, said the RA Minister of Energy and Natural Resources Yervand Zakharyan.
-The expectations of the state are great from this sphere.
The small republic, quite enough resources, but the results according to the statistics are small,- the Minister has mentioned.
Yervand Zakharyan has informed, that the indicators are at least not too satisfying, related exactly to the payment of royalties, or the implementation of the contractual physical volumes.
In the case of doing the contractual obligations by the mining exploiters, during the year will have been produced of about 43 million tons of ore.
The production of ore was about 24 million tons, or 56% of planned in 2014. The total cost of minerals produced and to be extracted in 2014 has calculated 209 885 997.4 thousand AMD, which amounted to 103.36% of the total cost of production of 2013. By the mining exploiters it was paid 12 079 194,974 thousand AMD of royalties in 2014, which is 56.2% of the total amount of paid royalties in 2013. By the total of 194,974 thousand AMD royalties was paid to 12 079, which is paid royalties in 2013, 56.2% of the total amount. It is predicted to produce a total of 41 million and 679 thousand tons of ore and to pay 17 billion and 172 million AMD of royalties by the metal mining exploiters in 2015. -You are in private companies and our relationship with you is regulating by the contracts. We have mutual obligations and our request from you is that you do your contractual obligations, said Yervand Zakharyan.
The Minister has noted, that to blame the global economic crisis and prices’ falling on the international market for the situation is not fair, as many problems, including the under-fulfillment of physical volumes and involving the investments, working outside of the approved mining border, exclusion of selective processing of the mines are just tasks of the mining exploiters. Yervand Zakharyan has mentioned, that the Ministry has encouraged the mining exploiters and will continue to support them, but at the same time, within the framework of it’s prerogatives will apply functions defined by the legislation to them, who has not fulfilled its contractual obligations.