VARDAN AIVAZYAN AGAINST INDIAN GOLD PRODUCERS

Lragir.am
14 June 06

The talks between Ararat Gold Recovery Company and the Ministry of
Environmental Protection resemble the Aliyev-Kocharyan meetings:
first they have a friendly talk, then they blame each other for the
lack of results and immediately deny accusations against them. But
if Aliyev and Kocharyan discuss governmental issues, Vardan Aivazyan
and AGRC are discussing the construction of a new factory.

The owner of the company is Anil Agarval, Indian by origin. On June
13, 2006 Vedanta Resources, which is also owned by Anil Agarval,
acquired the controlling interest of AGRC.

The dispute with the Ministry of Environmental Protection occurred
when AGRC decided to build a factory near Lake Sevan, 20-30 km from
the lake. The Armenians say it does not comply with the environmental
standards. The company, which has spent a lot of money for the place
and project, suggests that the government decide the place of the
factory for them to avoid wasting money. "The government must assist
companies which pay taxes," notices Armen Ter-Tachatyan, the lawyer
of AGRC.

The president of AGRC B.K. Sharma stated June 14 that they are ready
to build the factory where the government will say. The minister of
environmental protection Vardan Aivazyan stated that choosing the
place of the factory is not the problem of the government. The gold
miners are not saying that Vardan Aivazyan is lying, they cannot see
a tendency in his actions, but they stress that the government did
not reject their proposals but informed that it is being discussed.

The gold miners deny accusations against them. With regard to hiding
1000 kg gold, Armen Ter-Tachatyan, the lawyer of the company, said,
"For 1000 kg of gold several billion kg of soil must be dug. It is
impossible to hide several billion kg of soil." After denying that
the company invested less than it had pledged and other accusations
made by Vardan Aivazyan, B.K. Sharma first announced that an
authoritative international organization, as well as the relevant
agencies, audited AGRC. And generally the volume of investments
is the concern of the Ministry of Trade and Economic Development,
not the Ministry of Environmental Protection. And if Vardan Aivazyan
still has doubts, B.K. Sharma is ready to cover the travel expenses
of any international company to Armenia and open his factory before
it to reveal the truth. Vardan Aivazyan only has to invite.

According to B.K. Sharma, they have already invested 45 million dollars
in AGRC, they are going to invest another 85 million. They work with
losses. But it is normal, he assures, because in the first 6-7 years
they work with losses in this type of business.