Saturday, February 6 2016 19:31

 On February 6, Armenian President Serzh Sargsyan visited the Zangezur Copper Molybdenum Combine. 

During the meeting held at the Combine, the President said that the republic has a high mining potential.  "The mining enterprises should operate by all means, even if they have to sell their products at the prime cost and even at lower prices. They should realize that they are not only solving social problems but also preparing to regain their profits under favorable conditions on the international market," he said. In this light, Sargsyan recalled that due to the timely decisions taken in 2008-2009 amid similar problems, the country was able to overcome all difficulties. As a result, the years 2011-2012 became the most favorable for the mining industry. "I am not a specialist, but I am sure that the metal prices will normalize in a year or two," he said. Serzh Sargsyan praised the Combine's activity and promised to support it within the limits of resources available. 

Production Manager Ghazaros Bezirghanyan told reporters that the Combine is planning to demonstrate 10% growth in output in 2016. In September 2015, the Combine commissioned the second ball grinder, with the total cost of the project being 11 bln AMD. The first ball grinder has been operating since 2011 and it has demonstrated 27% growth in output. "In 2016 we intend to secure 10% growth," said Bezirghanyan. 

In 2015, the Combine processes 18 mln 237 thsd tons of ore. This year the plant is going to increase that indicator to 20 mln 103 thsd 900 tons. The production manager pointed out that the mining industry is in a complicated situation due to the decline in metal prices. Meanwhile, the ZCMC has not cut its staff, he stressed.

To note, a kindergarten was opened in Kajaran on February 6. The building of the kindergarten was overhauled with the financial support of the ZCMC. A total of 190 mln AMD was spent on maintenance and repair. 
"Zangezur Copper Molybdenum Combine" CJSC is the largest mining enterprise in Armenia and exploits the Kajaran deposit, which is the richest in the CIS by its copper content. ZCMC was privatized for 132 mln USD on 14 December 2004.  Afterwards, 60% of its shares passed into the ownership of Cronimet Mining (Germany), with the remaining 15%, 12.5% and 12.5% having gone to the Pure Iron Plant (Yerevan), "Armenian Molybdenum Production" CJSC and "Zangezur Mining" LLC, respectively.  According to the data of Cronimet Holding (headquarters in Karlsruhe, Germany), over the past few years the total investments in "Zangezur Copper Molybdenum Combine" CJSC amounted to over $500 mln. To note, Cronimet Mining also owns 51% of "Pure Iron Plant" OJSC's shares and 51% of "ELBAT" CJSC, an automotive battery production plant. 

In June 2014, the principal shareholder of the ZCMC replaced the leadership of the enterprise - the new General Manager is Neil Stevenson.  The assembly of shareholders decided to set up a Board of Directors headed by the ex-general manager Maxim Hakobyan.   In 2014, the Combine was on the 4th place on the list of the biggest taxpayers of Armenia, paying 19.9 billion drams in taxes.  According to ArmInfo's annual Ranking of the Major Industrial Enterprises of Armenia, ZCMC received 7.5 billion AMD net profit in 2013, with a 56% year over year decline.