Reuters, UK
Dec 8 2007

VTB invests $260 mln in Armenia copper-moly venture

YEREVAN, Dec 8 (Reuters) – Russian state-controlled bank VTB
(VTBR.MM: Quote, Profile, Research) will invest $260 million in the
exploration of Armenia’s second-largest copper molybdenum deposit,
Tekhut, which is expected to start mining ore in 2011.

VTB’s Chief Executive Officer Andrei Kostin told reporters in Armenia
the bank will receive a 50 percent stake in the project, which it
later plans to sell.

"In the future we will sell the stake to a strategic investor. For us
this is not a core business and our investment is temporary," Kostin
said.

The deposit is estimated to contain 1.6 million tonnes of copper and
nearly 100,000 tonnes of molybdenum, which may last for 40 years.

Armenian Copper Programme company, controlled by
Lichtenstein-registered Vallex F.M. Establishment, will hold another
50 percent in the venture. The deposit development programme
envisages building an open-pit mine to produce 7 million tonnes of
ore a year, and an ore-dressing plant to produce 30,000 tonnes of
contained copper and 800 tonnes of molybdenum in concentrate.
(Reporting by Dmitry Sergeyev, writing by Gleb Bryanski, editing by
Anthony Barker)