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SALE CONTRACT FOR COPPER AND MOLYBDENUM INDUSTRIAL COMPLEX SIGNED

Economy

Karen Chshmarityan, Armenian Trade and Economic Development Minister have today concluded the sale contract of “Zangezur Copper and Molybdenum Industrial Complex” with 1 foreign and 3 local companies.

German ”Chronimet” Company /60%/, Armenian “Pure Iron Factory” /15%/, “Zangezur Mining” LTD /12,5%/ and “Armenian Molybdenum Production”- AMP /12,5%/ are the new owners of the company.

The latter is an Armenian huge company. Its head Karen Karapetyan represented at the press conference after signing presentation that the factory was established in 2003 and is equipped with the modern technologies. 1500 tons of concentrate was annually produced in AMP but power will enable to generate up to 5000 tons.

It is noteworthy that a factory with such capacity has been running in Armenia for more than a year, which “is genuinely Armenian”, director assures. Let’s state that no journalist at presentation was aware of AMP.

Unlike the local one, German “Chronimet Mining” is a famous company. According to Chairman Gunter Pilarski, ”Chronimet” is a group of companies functioning in 4 continents.

Mr. Pilarski assesses positively the economic risks of Armenia since his company is a co-owner in “Pure Iron Factory” for 5 years and has become experienced in the metal industry of Armenia. On the whole, the German company has been running in Armenia for 10 years, has completely studied the market and appraised it positive.

Mr. Pilarski prefers the Georgian and Iranian export ways though he has said today an attempt has been made to transport a quantity of some goods by plane. “It costs expensive but is quicker”, Gunter Pilarski said.

“Zangezur Copper and Molybdenum Industrial Complex” was assessed $ 132 million. $ 45 million out of it was already entered in the state budget and the rest will be received next year.

Karen Chshmarityan, Armenian Trade and Economic Development Minister said that the group consisting of 4 founders will become one company and each will partake in the investments of $ 10-150 million in 2005. It is planned to increase the production volume by 1,5-2 times raising it from 8 million tons to 12-14 million ones.

The average wages in “Zangezur Copper and Molybdenum Industrial Complex” make 97.000 drams, which will be augmented to 120.000 drams. The job places will be increased from 3000 to 5000. Present director Maxim Hakobyan will keep heading the company.