GLOBAL GOLD MINING DEPRIVED OF ITS LICENCE FOR EXPLORATION OF MARJAN MINE

Noyan Tapan
Sept 05 2006

YEREVAN, SEPTEMBER 5, NOYAN TAPAN. The RA Ministry of Nature Protection
deprived the company Global Gold Mining (GGM) of its licence for
exploration of the mine in Marjan (Sisian). The RA Minister of Nature
Protection Vardan Aivazian stated this at the September 5 press
conference. According to him, the company has no longer the right to
carry out work at the above mentioned mine.

However, GGM is continuing exploration of the Marjan mine, so the
ministry has applied to the RA Prosecutor General’s Office.

GGM’s director Ashot Poghosian told NT correspondent that the company
has sent the minister a letter with the indication of the respective
RA law’s provisions, according to which "the unilateral annulation
of a licence through a statement or letter is forbidden". He noted
that the ministry was obliged to warn in writing the company about
its decision to cancel the company’s licence, and if the company
committed a violation, the ministry was to allow GGM to eliminate
that violation within a 90-day period. After that, the company must
have been given an opportunity for damage compensation repayment. In
the event that compenstaion is not paid, the ministry may apply to
court. Yet, according to A. Petrosian, GGM has never received such
a warning from the ministry.

"If the ministry does not observe the provisions of the RA law and
international agreements and continues making illegal statements,
it means that we have a "textbook" example of confiscation of our
investments," A. Poghosian said.