Cronimet to pay $132 mln for 75% of molybdenum plant stock in Armenia
24.11.2004
Yerevan. (Interfax) – Germany’s Cronimet will pay $132 million for
75% of the stock in Armenia’s Zangezur Copper and Molybdenum Plant,
or ZMMK.
Armenia’s Trade and Economic Development Minister Karen Chshmaritian
told reporters on Tuesday that agreement on this was reached during a
working visit to Germany by the country’s President Robert Kocharian
last week.
Half of the remaining ZMMK stock (12.5%) will be transferred to
Armenian Molybdenum Production (AMP), set up last year in Yerevan to
process molybdenum; the other 12.5% goes to management company Zangezur
Mining, created recently by the ZMMK workforce and administration.
Cronimet has said it is ready to credit AMP and Zangezur Mining to
enable them to acquire the ZMMK stock, Chshmaritian said..
Armenian and German specialists are now in Germany working on a
draft agreement expected to be coordinated with Deutsche Bank for
the receipt of banking guarantees. Plans call for the document to be
signed before December 5, Chshmaritian said.
How much Cronimet will be investing should become clear after a
feasibility study is done sometime around next June.
Cronimet owns 48% of the stock in Yerevan’s Chistoye Zhelezo (Pure
Iron), which processes molybdenum concentrate produced by ZMMK.
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