Devaluation of dram insufficient for activation of Alaverdi copper

Devaluation of Armenian dram insufficient for activation of Alaverdi
copper deposit

2009-03-09 16:03:00

ArmInfo. Devaluation of the Armenian dram to US dollar will favourably
affect the export activity of Armenian Copper Programme (ACP)
metallurgical company, however, it will not allow to activate Alaverdi
copper deposit and the copper-smelting plant, ACP Director Gagik
Arzumanyan told journalists today. He said, the prices for copper in
2008 were all-time high and reached $9,000 per 1 ton, and now they
reduced to $3,5 thsd. Even under conditions of all-time high prices
Alaverdi mine was not activated in view of running at a loss. "The
dollar should grow three times at least to the Armenian dram to
compensate a fall in the world prices for copper", G. Arzumanyan said.
"We see no prospects of exploration of Alaverdi deposit in the
foreseeable future", he added.

According to the director, in the crisis conditions, ACP does not
reckon on receiving the financial assistance from the government of
Armenia and does not consider this way a right decision for other
enterprises. He recommended the Armenian government not to deal with
the issues of rendering assistance to the specific enterprises as it is
pregnant with corruption risks. "An official should not
assess the business opportunities. The government must improve the
business-climate and the legislative base, especially as the
legislative base in the mining industry of Armenia is incomplete and
conflicting", ACP director said.