Prime-Tass English-language Business Newswire
March 29, 2004

Armenia’s govt plans to raise $130 mln from stake sale in ZCMC

YEREVAN, Mar 29 (Prime-Tass) — Armenia’s government plans to raise
at least U.S. USD 130 million from the sale of the controlling stake
in the Zangezur Copper Molybdenum Combine (ZCMC), Armenia’s Trade and
Economic Development Minister Karen Chshmarityan told a press
conference Monday.

The government currently plans to auction an unspecified controlling
stake in ZCMC, but if a good offer is received, it may sell a 100%
stake, he noted.

Several foreign companies, including Australia’s Rio Tinto and BHP,
and U.S.’ Phelps Dodge, have already expressed their interests in
ZCMC, he noted.

If a contender transfers USD 25-30 million to the Armenian government
in April it will be granted the right for exclusive negotiations, he
said without elaborating.

If the negotiations succeed the transfer will be included as part of
the payment on the stake, but if they fail it will remain with the
government.

ZCMC accounts for about 3% of the world’s molybdenum concentrate
output. End