"CRONIMITE MINING": CONSTRUCTION OF BIGGEST ORE-PROCESSING MILL IN REGION TO BE COMPLETED BY END 2010

/ARKA/
July 31
YEREVAN

YEREVAN, July 31. /ARKA/. Construction of the biggest ore-processing
mill in the region is expected to be completed by the end of 2010,
reports Hrachya Grigoryan, head of representative office of Cronimite
Mining (parent company of Zangezur copper-molybdenum factory cjsc)
in Armenia.

The new mill will allow bringing the annual yield up to 14 million
tons, says the report.

Apart from this, a steam and a transformer stations, as well as a
water reservoir to ensure environment-friendly water supply to the
factory are to be built.

All these investments will enable the factory maintaining its leading
positions on the world market.

Despite the continuous financial and economic crisis, Zangezur
copper-molybdenum factory continues uninterrupted production owing
to farsighted business and investment policy, financial support of
the stockholders and flexible sales strategy followed by Cronimite
parent company on the world market, says the press release.

Support of Armenian government also largely facilitated stable
development of the factory and helped implement social programs and
retain the jobs.

In 2004 the stockholders approved an investment program for over
200 million USD to modernize the factory, raise the productivity and
bring the ore processing volume up to 12.5 million tons per year. The
program was suc cessfully completed in October 2008.

Owing to investments and additional financial support from Cronimite
Mining, Zangezur factory is now able to resist fluctuations on global
markets, Grigorayn said.

All jobs a re retained and salaries are paid in time, he said. he
flexible sales system allowed Cronimite companies’ group fully making
up for losses from fall in demand for molybdenum and redirect the
ready product from the European markets to Asian ones.

As a result of the investment program, the product prime cost went
down: this, together with rise in world prices allows implementing
the next planned investments, Grigoryan said.

Cronimite is a group of companies operating throughout the world. Since
December 2004 Cronimite Mining has been holding 60% of the shares
of Zangezur copper-molybdenum factory cjsc. Other stockholders are
Armenian Pure Iron Factory (15%), Zangezur Mining llc (12.5%) and
Armenian Molybdenum Production company (12.5%).