MFA_Report_on_the_occupied_territories_March_2016_1

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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, . 71
Exploitation of the gold mine near Vejnali village in the occupied Zangilan district │Photo from www.president.nkr.am│15 May 2013 Aurubis AG (Germany), Zeppelin Baumaschinen GmbH (Germany), through its affiliate Zeppelin Armenia LLC, Strathcona Mineral Services Ltd. (Canada), Atlas Copco (Sweden), Tamrock (Finland), MoAZ (Belarus) and other entities, which are partners of the Vallex Group CJSC, are reportedly providing mining equipment and services for the exploitation of mineral deposits in the occupied territories. 448 Armenia's Armenian Copper Programme CJSC, Mining and Metallurgy Institute CJSC, Flesh Ltd. and Mika Cement CJSC are involved into these activities as well. 449 In October 2014, Gold Star CJSC 450 started the exploitation of the gold mine (referred to by Armenia as “Tundurget”) near Vejnali village in the occupied Zangilan district of Azerbaijan. 451 Russia-based Tigom CJSC and Mashzavod Trud OJSC supplied mining equipment for the exploitation of this mine. 452 According to the Armenian sources, a Swiss-Armenian businessman Vartan Sirmakes is funding the project. 453 In May 2013, Bako Sahakyan visited the occupied Zangilan district and inspected on site the implementation of several projects, including exploitation of Vejnali gold mine. He underlined the significance of the mining industry plant for the “Kashatagh region”, adding that it would simultaneously solve a number of socioeconomic and demographic issues. 454 Exploitation of Soyudlu gold mine in the occupied Kalbajar district │Photo from www.geopromining.com In October 2007, GeoProMining Ltd. (formerly known as Stanton Equities Corporation), established by Russia-based Industrial Investors Group (IIG) 455 and registered in the British Virgin Islands, 456 acquired Ararat Gold Processing Plant and established GPM Gold, 457 a subsidiary of GeoProMining, 458 which since then has been extracting lean ore in Soyudlu gold mine (referred to by Armenia as “Zod”) in the occupied Kalbajar district. 459 Gold reserves of Soyudlu deposit are estimated at 155 tons (this figure is unlawfully included into Armenia’s total gold reserves, which are estimated to be 448 See . 449 See . 450 On 12 March 2012 and 29 June 2012, “Gold Star CJSC” unlawfully acquired “licenses” “IO 103” and “YEU 08” (for 3 and 18 years respectively) for exploration/exploitation of the mineral resources in the occupied Zangilan district of Azerbaijan, including the Vejnali Mining Property. 451 See Hayk Gazaryan “Mining Industry: Serious Perspectives or Hard Heritage?” Theanalyticon.com, August 2013, (in Russian language). 452 See “Cooperation with Armenia”, Zavodtrud.ru, 14 June 2013, (in Russian language); “Equipment setup at the Gold Star CJSC, Republic of Armenia”, Tigom.ru, 25 July 2014, (in Russian language). 453 See “Karabakh President attends kindergarten opening”, News.am, 28 October 2014, . 454 See “Artsakh leader visits Kashatagh region”, Panorama.am, 16 May 2013, . 455 See ; . 456 See Nata Dzvelishvili and Tazo Kupreishvili, “Russian Capital in Georgian Business”, IDFI, May 2015, . 457 See . 458 See “GeoProMining Group gains ground as investment in Armenia grows”, Globalgoldcorp.com, June 2011, . 459 See “Sotq Gold Mine to Be Exhausted In 15 Years?”, Hetq.am, 07 August 2012, ; “GPM Gold: Zod mine and the Ararat gold extraction plant”, GeoProMining, http://www. geopromining.com/en/our-business/operations/gpm-gold/; “GeoProMining Group gains ground as investment in Armenia grows”, Globalgoldcorp.com, June 2011, . 72
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Contents A. Introduction 5 B. Execu
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A. Introduction At the end of 1987,
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The OSCE Minsk Group co-chairmen co
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B. Executive Summary The examined e
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Armenian statistical information sh
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thus profit from and support the oc
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programmes that ultimately serve th
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the field commanders. 20 S.Ohanyan
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II. Continued attempts of Armenia t
Page 22 and 23: the country’s president.” 44 Ar
Page 24 and 25: the NKR.” 58 According to the Arm
Page 26 and 27: Armenian public to be a subsidiary
Page 28 and 29: planning, development of collaborat
Page 30 and 31: Settlement activities in the occupi
Page 32 and 33: and mechanical growth. 134 In 2001,
Page 34 and 35: the separatist regime Arthur Aghabe
Page 36 and 37: Orientation for the newly arrived S
Page 38 and 39: There are reports that Syrian Armen
Page 40 and 41: Armenia’s Dorozhnik LLC company i
Page 42 and 43: as of 2013. Thus, for example, whil
Page 44 and 45: X. Providing products, investments,
Page 46 and 47: in Armenia lack sufficient financia
Page 48 and 49: consists of public figures and busi
Page 50 and 51: percent shares of Armenia's Armswis
Page 52 and 53: Armenia’s Prime Minister Hovik Ab
Page 54 and 55: “Kataro” wine production facili
Page 56 and 57: It is difficult to determine the ac
Page 58 and 59: The Asmaryan family from Syria work
Page 60 and 61: Former Prime Minister Tigran Sargsy
Page 62 and 63: Bako Sahakyan visits agricultural f
Page 64 and 65: Armenia is particularly interested
Page 66 and 67: President of Armenia visits “Trgh
Page 68 and 69: Wheat and other crops harvested in
Page 70 and 71: Back in February 1995, the National
Page 74 and 75: 270 tons 460 ). Extracted unprocess
Page 76 and 77: Unprocessed ore form Soyudlu gold m
Page 78 and 79: acquainted with the works there. 48
Page 80 and 81: Prime Minister of Armenia Hovik Abr
Page 82 and 83: As far as gold is concerned, Armeni
Page 84 and 85: protection) in the Bashitchay Natio
Page 86 and 87: As of 2015, approximately 460 mines
Page 88 and 89: Juma Mosque in the occupied city of
Page 90 and 91: E. Obligations and Responsibility u
Page 92 and 93: should follow the UN Guiding Princi
Page 94 and 95: No exception or provision for derog
Page 96 and 97: the invoked laws cannot be consider
Page 98 and 99: “One of the cornerstones of the l
Page 100 and 101: Serious breaches of obligations und
Page 102 and 103: Nagorno-Karabakh was unilaterally d
Page 104 and 105: A large number of domestic criminal
Page 106 and 107: F. Urgent Measures to Cease and Rev
Page 108: G. ANNEXES Original designations of
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