25 MILLION DOLLAR PROJECT TO BE IMPLEMENTED IN MINING INDUSTRY OF ARMENIA

Noyan Tapan

Nov 13, 2008

YEREVAN, NOVEMBER 13, NOYAN TAPAN. The start of the work of the
newly-created "Gegamet" Armenian-Russian-British mining enterprise
will be marked by a 25 million dollar investment project to be jointly
implemented by Uniastrum Bank (Russia), Unibank (Armenia) founded
by the indicated Russian bank, as well as Metta Group (Armenia)
and Torront Holdings Limited (UK), was announced by the sides’
representatives at a joint press conference, in which the RA Prime
Minister Tigran Sargsyan took part.

According to Khachatur Manukian, the founder of Max Group company
– the project participant, a deputy of the RA National Assembly,
the investment project includes the operation of Shorzha and Jil
mines, the construction of an ore mining and processing enterprise,
a fire-brick plant with the annual capacity of 20 million bricks, a
plant of additives for cement making with the annual capacity of 150
thousand tons, a chrome concentrate plant with the annual capacity of
50 thousand tons, and a ferrochromium plant with the annual capacity
of 20 thousand tons.

The co-owner of the indicated banks G. Zakarian considered it possible
that gold and platinum will be obtained from ores of the mines. In
his opinion, the return on the project’s investments will be received
in 3 years which is a high index. It is envisaged creating 500 jobs
as a result of the project’s implementation.

In the words of Pavel Kovgan, the head of the powder metallurgy
laboratory of Gintsvetmet research institute (Russia), Gegamet will
use technologies representing its intellectual property. Nonwaste
technologies will be applied at the ore mining and processing
enterprise to be built on the shore of Lake Sevan, while water for
chrome casting will be used in a closed cycle.

Tigran Sargsyan said that the project is being launched under
conditions of the international financial crisis when prices of mining
production are declining in international markets. According to him,
the project bears evidence of the investors’ trust in Armenia. He
expressed a hope that the investments of Gegamet as well as Unireso
insurance company founded by G.

Zakarian in Armenia will have a demonstrative effect in the sense that
Diasporan Armenians of CIS countries will find reliable and guaranteed
projects for their savings and investments in Armenia. "I think Armenia
now has a chance to demonstrate its advantage and attract investments,"
the prime minister stated.

He said that Gegamet’s project is in line with the requirements
of the Armenian law on Lake Sevan and the ecological norms will be
observed during the project’s implementation. T. Sargsyan expressed a
willingness to hold, together with the investors, all the interested
sides and independent experts, public discussions on Gegamet’s project.