FROM JULY 1 THE AGARAK COPPER-MOLYBDENUM FACTORY RESTARTS ITS PRODUCTION

ARMENPRESS
JULY 9, 2009
YEREVAN

The Agarak copper-molybdenum factory has restarted its works which
were suspended for a few months.

Mayor of Agarak Mkhitar Zakarian told Armenpress that the start of
the works has been announced on June 30 after the visit of the Prime
Minister Tigran Sargsian to Agarak. In accordance to the agreement
reached with the Prime Minister the factory restarted its production
on July 1.

According to M. Zakarian the factory has not yet reached its entire
output capacity but the output volumes gradually increase. Here nearly
3 million tonnes of mineral is intended to be processed annually
getting 700-800 tonnes of copper and 60-70 tonnes of molybdenum
monthly.

M. Zakarian said that an attempt is made to reach such an output
capacity as in this case the self price of the product decreases
which makes the works more rational.

The mayor informed that at present the number of workers in the factory
reach nearly 900. According to the agreement reached with the Armenian
Government the factory leadership are committed to ensure at least 900
employees. Here certain dismissals took place in December last year;
the number of workers decreased from 1450 to 900. New dismissals will
not take place.

The mayor noted that the factory had the same amount of workers during
the Soviet years as well.

On the corresponding decision of the Armenian Government the Agarak
copper-molybdenum factory has been allocated with nearly 14 million
USD of credit to restart the activity of the factory and pay off the
gathered debts for salaries.

According to M. Zakarian the restart of the activity of the factory
has a very important role for the town. Nearly 80% of able-to-work
residents of the town work in this factory. The mayor of Agarak
expressed hope that there will not be an issue of demand for copper and
molybdenum in the international markets and no necessity of reduction
of the output volumes will arise.

He added that an attempt is made to activate the life in Agarak;
a number of new projects are intended to be implemented here in
collaboration with the Armenian Sport and Youth Affairs Ministry.

The town of Agarak has 2550 able-to-work residents. Here mostly the
lands are not used for agricultural aims.