MFA_Report_on_the_occupied_territories_March_2016_1

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270 tons 460 ). Extracted unprocessed ore is transported for processing to Armenia by rail at a crushing and screening plant and then to Ararat Gold Processing Plant. The company exports 99 percent of Armenia’s total gold exports. 461 In 2013, the company was ranked as the number one taxpayer (7.261 billion AMD) in Armenia. Since 2007, GeoProMining has invested some $260 million into GPM Gold and Agarak Copper-Molybdenum Mine Complex. 462 The money was used to upgrade the extraction technology at the Ararat plant, which was not designed to process the sulphide ores remaining at the Soyudlu deposit. As of April 2014, GPM Gold has been operating a new Albion gold extraction technology from Xstrata Technology (Australia) and supported by Core Process Engineering (Australia) 463 at the Ararat facility, which was designed to significantly increase the extraction coefficient for sulphide-heavy ores from Soyudlu mine. 464 Armenia exported a record 3.6 tons of gold dust in 2014 with a customs value of $82 million. The exports are in the form of doré (a semi-pure alloy of gold and silver usually created at the site of a mine). The alloy contains more than 70 percent gold. After further refinement, the gold is sold on the London stock exchange. Armenia’s gold is exported to Canada. Eight kilograms of exports in 2014 went to Switzerland. To note, Canada first became interested in the region’s gold deposits in 1997 when First Dynasty Mines, a Canadian company, purchased shares in the Ararat Gold Processing Plant. The plant was transformed into the Ararat Gold Recovery Company. Indian billionaire Anil Agarwal bought the company in 2002 and sold it to GPM Gold in 2007. 465 A 2012 estimate predicted that with such an extraction rate, the Soyudlu reserve will be exhausted in 15 years. 466 In April 2012, Bako Sahakyan met the delegation of the Estet Jewellery House led by its head and the president of the Armenian Jewellers Association Gagik Gevorkyan. At the meeting, issues related to the development of jewellery industry in the occupied territories were discussed. After the meeting Sahakyan and the delegation attended the ceremony of opening of a jewellery school in Khankandi. Sahakyan called the opening of the school Ore extraction at Soyudlu gold mine in the occupied Kalbajar district │Photo from www.geopromining.com Artsakh and its entrance into the international level”. 467 Exploitation of Soyudlu gold mine in the occupied Kalbajar district │Photo from www.geopromining.com a symbol of successful cooperation with the Estet Jewellery House, which, in his words,“would have a substantial impact on the development of the jewellery industry in 460 See “Armenia’s Gold Exports on the Rise but Revenues Drop”, Hetq.am, 31 March 2015, . 461 Ibid. 462 See “GeoProMining Group gains ground as investment in Armenia grows”, Globalgoldcorp.com, June 2011, . 463 Ibid. 464 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, . 465 See “Armenia’s Gold Exports on the Rise but Revenues Drop”, Hetq.am, 31 March 2015, . 466 See “Sotq Gold Mine to Be Exhausted In 15 Years?”, op. cit. 467 See “On 22 April Artsakh Republic President Bako Sahakyan met delegation of the ‘Estet’ Jewelry House led by head of the organization, president of the Armenian Jewelers Association Gagik Gevorkyan”, Artsakhtert.com, 22 April 2012, . 73
Exploitation of Soyudlu gold mine in the occupied Kalbajar district │Photo from www.geopromining.com A German company Freedom Resources is reportedly exploring ore field (precious metals, nonferrous metals and rare metals) in the occupied Kalbajar district, while another German company, Freedom Metals, is conducting exploration of mercury mine near Zulfugarly village in the occupied Kalbajar district. 468 Russian businessmen of Armenian origin Sergei and Nikolai Sarkisovs, owners of Reso-Insurance, which is one of largest insurance companies in Russia, are investing in copper mining near Zardanashen village in the Khojavand district and the gold mining areas in the uplands of the Tutkhum River in the occupied Kalbajar district. 469 According to the information provided by geologist Arman Vardanyan, East West Global Mining Inc. conducts exploration of the gold and molybdenum deposits in Tutkhum mine in the occupied Kalbajar district of Azerbaijan. 470 The mining area of Zardanashen is 3 square kilometres, and is rich in concentrations of copper, lead, cobalt, and nickel. Traces of gold, titanium, and vanadium were discovered too. And gold and silver concentrations were found in the mining areas of the Tutkhum River Valley. In June 2012, Bako Sahakyan visited ore manifestation site in the vicinities of Zardanashen village and got acquainted with the works there. 471 There is a stone processing plant in Harov village near Khankandi, producing a variety of stone products, including blocks, tiles, rose and green marble, and border stones. On average, the plant produces 500 square meters of tiles per month. The products are sold in Armenia. The equipment for that plant was brought from China. 472 The presented evidence shows that there is an illegal traffic in natural resources across the occupied section of the international border between Azerbaijan and Armenia, which is controlled by the armed forces of Armenia. Armenia is a transport base for movement of minerals and other wealth from the occupied territories to international markets. The construction of the Vardenis (Armenia) – Aghdara highway through the occupied Kalbajar district of Azerbaijan is directly linked to the exploitation and pillage of natural resources in the occupied territories and their exports out of those territories to Armenia and elsewhere. 473 The final destination of the road is mining areas in the occupied territories. 474 Minerals are currently being transported to Armenia via the existing road passing through the Kalbajar district, which is in poor condition 475 , or via 468 See “Mining Industry: Serious Perspectives or Hard Heritage?”, Ecolur.org, 30 September 2013, . 469 See “Russian-Armenian billionaire brothers invest in Karabakh”, News.am, 27 July 2013, . 470 See . 471 See “President of the Artsakh Republic Bako Sahakyan visited ore manifestation site in the vicinities of the Zardanashen village in the Martouni region and got acquainted with the activities carried out there”, Artsakhtert.com, 17 June 2012, . 472 See “Stone Processing, Artsakh – TRDP Entrepreneur Pavlik Gasparyan”, . 473 See “Armenian Mining Giant To Expand Karabakh Operations”, Azatutyun.am, 20 March 2012, . 474 See “Armenia-Karabakh highway construction launches”, Artsakhpress.am, 14 February 2014, . 475 See “New Roads, New Questions: Construction of New Armenia-Artsakh highway”, Civilnet.am, 07 June 2013, . 74
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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
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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 72 and 73: Caterpillar heavy machines are used
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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