15:32, 21 February 2023
YEREVAN, FEBRUARY 21, ARMENPRESS. Mining ensured nearly 200 billion drams in tax revenues to the state budget in 2022, i.e. 10% of the total of 2 trillion of revenue of the budget was provided by the mining sector, the First Deputy Director General of the Zangezur Copper and Molybdenum Combine, President of the Union of Miners and Mettalurgists Vardan Jhanyan said at a press conference.
However, he added, such “unprecedented” revenues aren’t expected in 2023.
“2022 was unprecedented in terms of the state budget revenues. 10% of the over 2 trillion in revenue was ensured by mining, that is, mining secured nearly 200 billion drams in revenues to the state budget,” Jhanyan said.
But this year there won’t be such high figures. Jhanyan pointed out several factors while explaining the projection. For example, the export duty for metal concentrates has been lifted. Last year, taxes were paid under the 2021 profitability calculation. “We don’t expect such unprecedented revenues in 2023, but in the next years when the output will grow we expect such tax revenues,” Jhanyan said.
Speaking about the challenges facing the sector, he pointed out the dram appreciation.
“Now the exchange rate is 20-30% more than in the beginning of 2022. Everyone in the sector is an exporter, they are in a very difficult situation. Their expenses are in drams but profits are in dollars. And today many exporting companies in the sector are working with damages,” he said. But Jhanyan is against any intervention by the Central Bank in this matter. He said that the Union of Miners and Mettalurgists presented recommendations to the government, such as easing the tax burden or at least offering tax breaks.
The sector has two main products in Armenia: copper concentrate (which contains gold) and ferromolybdenum.
The main market for exports of ferromolybdenum has been Europe, with some volumes being exported to Russia, while China has been the main market for copper concentrate.
The Zangezur Copper and Molybdenum Combine increased its output and exports in 2022 by 20%.