Arminfo, Armenia Oct 13 2018 Alaverdi Copper Plant asks the government for support, otherwise the operation of the enterprise may be suspended Yerevan October 12 The workforce of the Alaverdi copper-smelting copper smelter launched protest actions calling on the country's government to provide an opportunity for the enterprise to significantly increase sulfur dioxide emissions. Otherwise, the fines imposed on the company by environmental supervisory authorities make the operation of the enterprise unprofitable. The employees of the enterprise on Wednesday passed a protest rally and even for a short time blocked the interstate road leading to the Armenian-Georgian border. In connection with the holidays, ArmInfo correspondent was unable to contact the management of the Vallex industrial group, which owns the company, however, according to the information contained in social networks, it becomes clear that the original ultimatum to the government is connected with the position of the State Inspectorate for Environmental Protection, which recently fined the plant 380 million drams ($ 700 thousand) due to a serious violation of environmental legislation, adopted in 2005. According to independent observers, the position of the supervisory authority undoubtedly fits into the fabric of the behavioral line governments aiming to regulate the behavior of players in the country's mining industry, which, until the April velvet revolution, tended to regulate some of their "painful" issues with the state on the basis of informal agreements that allowed to bypass certain standards in order to increase production efficiency. Apparently, something similar happened at the Alaverdi Combine and, according to a new approach, the company fined the enterprise, gave it a 2-month period to comply with the emission standard, for which the company simply was not ready. In an interview with the Public Radio of Armenia, plant manager Lusine Mezhlumyan recently reported that the practical impossibility of fulfilling the requirements of environmental inspectorate requirements brings to the agenda the issue of shutting down the plant, which employs over 600 people. The problem is complicated by the fact that the property complex of the enterprise is secured by a loan of $ 500 million, previously received from VTB Bank for the development of a large Teghut copper- molybdenum deposit, the operation of which was also stopped due to environmental problems even last year after the suspension of co-financing by one from overseas lenders. Under these conditions, servicing a VTB loan becomes extremely unaffordable for an enterprise and a serious decline in the level of profitability of the Alaverdi plant, in fact, may lead to its bankruptcy. Experts with whom ArmInfo correspondent was able to talk, note that the new government, despite the legitimacy of its position regarding the inclination of mining enterprises to the need to strictly adhere to environmental standards, cannot be cut off without thinking about the undesirable economic, investment and social consequences. Note that the Alamerda copper smelter was built in the 50s of the last century. Its modernization under the modern enterprise is extremely difficult and inefficient. One solution to the problem of processing copper raw materials inside the country is the construction of a new plant of average capacity, the interest to which is shown by Chinese investors. By a decision of Deputy Prime Minister of Armenia Tigran Avinyan of July 12 of this year, a working group was established to provide state support to the preparatory work in the framework of the construction program of the new copper smelting plant by Armenian Kopr Program CJSC (ACP), also part of the VallexGroup. According to preliminary estimates, the investment value of the enterprise will be about $ 80 million. The group included representatives of 4 ministries - economic development and investments, ecology, finance, as well as energy infrastructures and natural resources. The work of the enterprise will allow to get pure copper in Armenia, thanks to which in the country it will be possible at least partially to restore various related production. Note that Vallex Group (Vallex Group) was established in 1998 and unites 20 subsidiary and affiliated companies. Among them, Teghut CJSC, founded in May 2006, 100% of the shares of CJSC belong to Teghut Investments Limited of Cyprus, 100% of which voting shares in turn belong to Armenian Kopr Program CJSC, which is fully owned by Valery Mejlumyan, and also CJSC "Base Metals", operating the copper-gold deposit in the village of Drmbon, Martakert region, NKR, Armenian Copper Program CJSC (ACP), operating the Alaverdi Copper Smelter.