VTB GROUP TO CONTINUE FUNDING OF TEGHUT MINE DEVELOPMENT
ARKA
Nov 12, 2008
YEREVAN, November 12. /ARKA/. The VTB Group will continue funding the
development of the Teghut copper and molybdenum mine after correcting
basic calculations, Andrey Kostin, Board Chairman, VTB Bank OJSC
(Russia), stated during a space bridge between the VTB Bank and its
three branches in Armenia, Ukraine and Belarus.
He pointed out that the TVB Group has started funding the project by
providing the first tranche of a $30mln credit.
However, the international financial crisis and a slump in the
prices for the prospective products create difficulties in attracting
long-term funding.
Kostin pointed out that the new conditions necessitate accurate
planning. So the necessary work is being carried out jointly with
stockholders.
"We are not giving us the idea of crediting the project though it is
rather difficult in the context of the international financial crisis.
Nevertheless, we are interested in the project considering the fact
we have begun funding it," Kostin said.
He pointed out the necessity for corrections in the context of the
new economic situation, particularly a fall in the prices for most
mineral resources.
"Without anticipating things, we will continue implementing the
Teghut mine development project in the context of new circumstances,"
Kostin said.
On May 27, 2008, in Yerevan, the VTB Bank (Russia) and the Armenian
Copper Programme (ACP), which is licensed for the development of the
Teghut mine, signed an agreement for a 12-year $249.5mln credit for
the development of the Teghut mine.
The ore mining project at Teghut, Armenia’s second largest copper
and molybdenum mine, will last for 24 years.
The projects provides for the construction of an ore-dressing and
processing enterprise with an annual capacity of 83.7ths tons of
copper concentrate, 1.6ths tons of molybdenum concentrate.
The ACP CJSC, which forms part of the Vallex Group, was founded in
August 1997, using the facilities of the Alaverdi mining and smelting
enterprise.
The enterprise is owned by the Vallex F. M. Establishment
(Lichtenstein) (80.74%) and ACP Director General Valery Mejlumyan
(19.26%). The enterprise specializes in producing copper and copper
concentrates.
The VTB Bank (Armenia) CJSC (before June 20, 2006, Armsavingsbank)
joined the VTB Bank in April 2004. The bank is currently fully owned
by the VTB Bank.