ARMENIAN MINING INDUSTRY COULD GRIND TO A HALT – MINISTRY

Interfax
Dec 23 2008
Russia

Armenia’s mining industry could grind to a halt if metal prices do
not start to recover at the beginning of next year, Armenian Energy
and Natural Resources Minister Armen Movsisian told Interfax.

The drop in world metals prices has forced Armenian mines to scale
down production and exports, Movsisian said. Jobs and salaries are
being cut. "We could be looking at two scenarios if prices don’t
rise by February: either mining enterprises will be forced to shut
down indefinitely, or they will have to find additional investment
to reorganize production," he said.

The government will re-address the crisis in the country’s mining
industry in February, he said.

The government has already decided to intervene in resolving the
future of three major crisis-hit mining enterprises – the Zangezur
and Agarak copper-molybdenum plants and Kapan Mining, which operate
in Armenia’s Southern Ore Belt.

Movsisian said in the middle of November that agreement had been
reached with management at the three mines to avoid laying off staff
and to keep salaries intact if possible in the next three months.