ARMENIAN GOVERNMENT TO GRANT $10 MLN OF STATE CREDIT TO ZANGEZUR COPPER MOLYBDENUM INTEGRATED PLANT
ArmInfo
2009-02-19 15:41:00
ArmInfo. On Thursday, the government of Armenia made a decision on
extension of a state credit at the rate of $10 mln to "Zangezur Copper
Molybdenum Integrated Plant" (ZCMIP) CJSC.
Finance Minister of Armenia Tigran Davtyan, who presented the
governmental decision, said the funds are granted to overcome the
consequences of the global economic crisis. He added that Zangezur
CMIP plays an important part in the country’s economic life, and in
view of this the state decided to support the enterprise. The minister
also said the company will complete the process upgrading using the
state funds, due to which its output capacity and competitiveness
will grow. The credit will be granted at LIBOR+6% rate. The terms
of crediting are not indicated. The Prime Minister of Armenia
Tigran Sarkisyan said at the government session that the state
credit guarantees an uninterrupted operation of the enterprise at
full productive capacity during the next three years. Moreover, 50
supplying enterprises, which serve ZCMIP and number 2,000 workplaces,
will also receive guaranteed orders, the PM added. As he said, due
to upgrading, the output capacity of the enterprise will grow by 30%
at least. "This will create a more favourable social atmosphere in
Syunik region, where the plant is located, that is very important
for the government. This is an unprecedented bargain with a full
anti-crisis content", T. Sarkisyan said.
To recall, $160-170 mln were invested in upgrading of "Zangezur
Copper Molybdenum Integrated Plant" CJSC since privatization (from
late 2004 to the present day). The investments helped to increase the
design capacities of the plant from 9 mln tons of ore per year to
12,5 mln tons per year. It is scheduled to increase the capacities
to 16-17 mln tons per year during the next 2-3 years. "Zangezur
Copper Molybdenum Integrated Plant" CJSC was privatized for $132
mln on December 14, 2004, after which 60% shares of the enterprise
passed into the ownership of Cronimet Ð~Jining German Company,
the rest 15% shares – to "Pure Iron" OJSC Yerevan plant, 12,5% –
to Armenian Molybdenum Production (AMP) Armenian CJSC and 12,5% – to
"Zangezur Mining" Armenian Ltd, which process and sale the molybdenum
concentrate obtained at the plant.
From: Emil Lazarian | Ararat NewsPress
