Teghut CJSC to attract $338 mln for project on development of Teghut copper-molybdenum deposit in Armenia

• Thursday, February 28, 16:46

Teghut CJSC, member of Vallex Group, is going to attract $338 mln for the project on development of Teghut copper-molybdenum deposit in Lori region of Armenia, Armenian Economy Minister Tigran Davtyan said at today's session of the Government.

In line with the project, investments will be made within the next 28 years. The minister pointed out that 132 mln USD will be invested in acquisition of equipment and construction of a processing plant. This project will create about 1,000 new jobs in 2014. The plant is to extract and process 7 mln tons of ore per annum and produce 54 thsd tons of air-dried metric tons of copper concentrate (31% average copper content) and 1 thsd air-dried metric tons of molybdenum
concentrate (50% molybdenum content).

At today's session the Government of Armenia decided to postpone the value-added tax payment from the equipment import for three years. The minister said that the matter concerns importation of Russian and Ukrainian mining equipment worth 2.7 bln AMD (6.6 mln USD).   

To note, Teghut CJSC was founded on 22 May 2006 by Vallex Group. 100% of its shares belong to Teghut Investments Ltd. (Cyprus), whose 100% preferred shares are owned by the Armenian Copper Programme belonging to Valery Mejlumyan. By its reserves, Teghut deposit holds the second place in the republic after the Kajaran copper and molybdenum deposit in Syunik. In 1991 the approved reserves amounted to 450 mln tons of ore, including 1.6 mln tons of copper (with 0.355% content), and 99 thsd tons of molybdenum (with 0.022% content).