PRODUCTION VOLUMES OF KAPAN MINING AND PROCESSING PLANT IN
FIRST QUARTER OF 2005 FELL 38% TOTALING $1.7 MLN

YEREVAN, MAY 2. ARMINFO. The production volumes of Kapan mining and
processing plant in the first quarter of 2005 fell 38% as compared
to the same period of 2004 totaling $1.7 mln, Head of the Department
for Economy, Management of Nature and Ore-Mining Industry, Armenian
Ministry for trade and Economic Development, Artur Ashughyan told
ARMINFO’s correspondent.

He said that export in the period under review halved totaling 555 mln
AMD ($1.2 mln). The process of liquidation of the enterprise through
procedure of bankruptcy in November 2004 had a negative impact on the
production volumes, he said. The plant had $11 mln debts, including
to the government. In conformity with the effective legislation,
the owner of the plant had to recognize the plant a bankrupt and to
establish a new juridical entities on its basis “Deno Gold,” Ashughyan
said. He added that the plant was privatized in conditions of strikes
when the personnel were not receiving wages for months. 100% of Kapan
mining and processing plant were purchased in Dec 2002 by the DENO
company registered in Switzerland for $2,5 mln. In December 2004 the
plant’s owners paid $1 mln of the debt, he said. At present, DENO
company is negotiating with foreign banks to attract new investments
in the enterprise.