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Interfax News Agency
Russia & CIS Business and Financial Newswire
February 9, 2007 Friday 5:11 PM MSK
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Alrosa said eyeing gold producer AGRC in Armenia

Russian diamond producer Alrosa (RTS: ALRS) or its investment arm IG
Alrosa are interested in buying Ararat Gold Recovery Company (AGRC)
in Armenia, an industry source told Interfax.

The source said a Russian specialist was in Armenia, examining the
state of affairs at AGRC.

The source said the Armenian authorities were not satisfied with
AGRC’s performance. He said the Armenian Environmental Protection
Ministry had, following its latest inspection, accused the company of
violating environmental standards and of concealing 1.6 tonnes of
gold, and that officials from the Tax Inspectorate and Prosecutor’s
Office were inspecting the company’s paperwork.

AGRC is not confirming that talks are in progress.

AGRC is owned by Sterlite Gold Ltd, which in turn is 55% owned by
India’s Vedanta Resources. Private non-resident investors own the
other 45% of Sterlite Gold. Vedanta Resources bought the 55% of
Sterlite Gold for $32 million in 2006.

The Zod gold deposit, where AGRC operates, contains an estimated 80
tonnes of 2.6 million ounces of gold.

From: Emil Lazarian | Ararat NewsPress