Armenian government nationalizes 25% of Zangezur cooper and molybdenum combine

YEREVAN, October 1. /ARKA/. The government of Armenia said it has agreed to accept as a gift 25% of shares (412,250.75 ordinary shares worth 20 thousand drams each) of the Zangezur Copper-Molybdenum Combine. The decision is published on the government website.

According to the decision, the Office of the Prime Minister of Armenia is designated as the authorized body to manage the shares. The conclusion of the contract and state registration of property rights will be carried out within 10 days. All related costs will be covered by the donator, according to the statement.

In early July, 2021, the Armenian parliament, dominated by Prime Minister Nikol Pashinyan’s Civil Contract party, approved a government proposal to impose a new 15% tax on exports of copper and other metals. The approval came one day after law-enforcement officers raided the offices of the combine, whose board of directors comprised Vahe Hakobyan, a senior member of the opposition Hayastan bloc led by former President Robert Kocharyan.

The government substantiated the rise of the export duty by growing international prices of copper and molybdenum. The decision was branded by opposition mass media outlets as ‘a political vendetta.’

The Zangezur Copper-Molybdenum Combine is one of the largest companies in Armenia, which topped for years the list of Armenia’s 1000 largest corporate taxpayers.

The combine is located in the town of Kajaran, developing the Kajaran copper-molybdenum deposit. According to experts, there is enough copper ore for the combine to develop the deposit for another 150 years. The shareholders of the plant are German Cronimet Mining (60%), Yerevan Pure Iron Plant OJSC (15%), Armenian Molybdenum Production LLC and Zangezur Mining LLC (12.5% ​​each). -0-

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