MFA_Report_on_the_occupied_territories_March_2016_1

Caterpillar heavy machines are used in the exploitation of Demirli
copper-molybdenum mine
│Photo from www.bm.vallexgroup.am│27 May 2014
a factory was built nearby to process ore with annual capacity of up to 1,8 million tons, and in
the near future it is planned to be expanded to process some 3,5 million tons of ore. 439 Mining
and Metallurgy Institute CJSC of Armenia with the cooperation of Strathcona Mineral Services
Ltd. (Canada) was involved in drawing up the first stage of mine evaluation and exploitation plan
in 2012, which envisages extraction of 1.1 million tons of ore by 2016. 440
The Vallex Group CJSC has invested some $130 million in exploitation of the mine that became
operational in 2015, 441 i.e. at a time of anticipated depletion of Gyzylbulag mine. 442 The company
employs some 1,400 workers, including mining engineers from Armenia, Russia, Republic of
South Africa and elsewhere. 443 At least one of the reported source of the investment for this
project is VTB Bank (France) SA and VTB Bank (Armenia), which are part of Russia-based VTB
Group. According to Base Metals CJSC Financial Statements for 2013, in 2011 a loan agreement
for $25 million and in 2013, a loan agreement for $11 million was signed respectively with VTB
Bank (France) SA and VTB Bank (Armenia). 444
According to the programme, about 17
million tons of ore will be processed in this
mine during the coming 10 years. 445 Armenia
supplies energy to the exploitation of the mine
through “Sotk-Karvachar-Aterk” high-voltage
power grid, which was built specifically for this
purpose. 446 In March 2012, Bako Sahakyan
held a meeting on issues related to the
exploitation of that mine. He underlined the
serious expectations from the exploitation of
the ore deposit. 447
Commissioning of the ore processing plant at Demirli coppermolybdenum
mine
│Photo from www.artsakhpress.am│ 26 December 2015
Commissioning of the ore processing plant at Demirli mine
│Photo from www.artsakhpress.am│ 26 December 2015
439
See “Base Metals Launches Second Mine in Artsakh; An Open-Pit Operation”, Hetq.am, 03 July 2013, ; “Mining Industry: Serious Perspectives
or Hard Heritage?”, Ecolur.org, 30 September 2013, ;
“These Mines Are The Most Important Achievements For The Economy Of Artsakh, For Our Company,
And For The Region”, Artsakhtert.com, 31 October 2013,.
440
See Base Metals CJSC Financial Statements for the year ended 31 December 2013, .
441
See “Kashen enrichment plant opened in Martakert region”, Artsakhpress.am, 26 December 2015, . “A New Mining Program Is Starting”, Artsakhtert.
com, 19 March 2012, ;
“New Mining Complex Inaugurated In Karabakh”, Massispost.com, 05 January 2016,
.
442
See “Armenian Mining Giant To Expand Karabakh Operations”, Azatutyun.am, 20 March 2012, .
443
“New Mining Complex Inaugurated In Karabakh”, Massispost.com, 05 January 2016, .
444
See “Teghout’s Offshore Labyrinth and Valeri Mejlumyan’s Business Empire”, Hetq.am, 29 April 2014, .
445
See “A New Mining Program Is Starting”, Artsakhtert.com, 19 March 2012, .
446
See “Over $70 mln. invested in Kashen cooper mine in Karabakh so far”, Arka.am, 10 November 2014, .
447
See “On 19 March Artsakh Republic President Bako Sahakyan convoked a working consultation on issues related to the
exploitation of the Tsakhkashen deposit”, Artsakhtert.com, 20 March 2012, .
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