Interfax News Agency
Russia & CIS Business and Financial Newswire
June 9, 2006 Friday 10:23 AM MSK

Armenia’s Zangezur Copper-Molybdenum Plant boosts earnings 23% in
2005

The Zangezur Copper-Molybdenum Plant increased net profit by 22.9% to
12.956 billion dram ($28.7 million) in 2005, from 10.537 billion dram
($23.4 million) a year earlier, company general director Maxim
Akopian said.

Commercial production and sales grew to 87.48 billion dram in 2005,
from 65.529 billion dram in 2004.

He said the company mined and processed 8.854 million tonnes of ore
last year, compared to 8.563 million tonnes in 2004. The company’s
contributions to the state budget almost doubled to 29.226 billion
dram, from 15.211 billion dram.

Akopian said this year would be even better than last year.

Zangezur will mine and process 9.9 million tonnes of ore in 2006, he
forecasted.

In 2008-2029, the company plans to reach annual production of 16
million-18 million tonnes of ore, and intends to invest $90 million
in modernization to achieve this goal, he said.

Zangezur also has joint projects to produce pure molybdenum and
molybdenum products with Armenian Molybdenum Production and the
Yerevan Pure Iron works. The company plans to invest $15 million in
these projects, as well as $15 million in studying the possibility of
recovering other metals from ore and tailings and setting up the
corresponding production facilities, recovering copper, molybdenum,
silver, gold, rhenium and sulfur. There are also plans to study the
economic viability of producing refined copper, in which the company
plans to invest $5 million, Akopian said.

Germany’s Cronimet Mining 60% of the Zangezur mine. The Yerevan Pure
Iron works owns 15%, Armenian Molybdenum Production (AMP) 12.5% and
LLC Zangezur Mining owns 12.5% on behalf of the plant’s former
management.