DISCREPANCY BETWEEN CANADA’S "FIRST DYNASTY MINES" COMPANY AND ARMENIAN GOVERNMENT

Today, Azerbaijan
Oct 31 2006

There is a discrepancy between Armenian Government and "First Dynasty
Mines" (FDM) Company of Canada extracting gold in Soyudlu gold deposit
in Kalbajar, the occupied Azerbaijan region.

Though in order to reduce transportation expenses FDM presented the
Armenian Government the project of gold extraction plant with little
oil percentage near Soyudlu deposit official Yerevan did not allow
the construction alleging to ecological norms.

Besides the Armenians working in the company were incited to hold
protest actions against the leadership. Because of the protest actions
500 Armenians working for FDM were dismissed, Arif Isgenderov the
chief of Ecology and Natural Resources Ministry Ecology and Nature
Protection Policy Department told the APA.

He said that Armenian press close to official authorities and Russian
press try to create a negative opinion about FDM. "Probably this
kind of actions serves to reconsider the agreement between FDM and
Armenian Government or to stop FDM activity. Analogous processes
happened between Armenian Government and Greek company Armentel."

FDM invested US $22.1 mn in gold extraction in Nagorno Garabagh. The
company plans to invest US $12mn in Armenia’s gold extraction by the
end of next year. At the moment Armenian Government holds negotiations
with the World Bank International Finance Corporation and other foreign
banks with a view to make investments in the field o f gold extraction
in the occupied Azerbaijan territories. FDM has invested US $4 mn
in the geological explorations in Armenia and occupied Azerbaijan
territories. It is expected that the company plans to extract over
5 tons of gold and with the agreement of the Armenian Government to
make geological explorations in the 20 km round the deposit.

URL: