Panorama.am

17:58 05/05/2007

GOVERNMENT FINES ARARAT GOLD IN THE AMOUNT OF $50 MILLION

Armenian ministry of finance and economy has made a claim against
Vedanta Resources, an Indian corporation in Armenia that owns Ararat
Gold, in the amount of $50 million, Arminfo reports referring to
copies of documents that the news agency has got hold of. According
to the statement, another fine has been set for the period of
2004-2005-2006 and the first quarter of 2007 in the amount of $30
million. The ministry says the company has engaged in mining without
`proper documentation.’

Particularly, the ministry found out that the company does not have
license contract, document on re-approved reserves as well as draft
plant on Sotk gold mines. Besides, the company has reported $20
million extra expenditures with the aim to hide real income from 1999
to 2006. Other violations were also reported.

The Armenian government is very discontent with the company and forces
Ararat Gold to shut down. The company may be sold to a Russian company
on $80-90 million. At the moment, four Russian companies are
interested.

Source: Panorama.am

From: Emil Lazarian | Ararat NewsPress