While giving an overview of the past year, Robert Falletta, General Manager of Deno Gold Mining Company (former Kapan Mining Combine) noted that the direction adopted by the company at the start of the year was designed to insure that the company operated at a profit and was in a position for a number of modifications to be realized. “We had been expanding our productions levels and our employees would know better the successes we had. However, the economic crisis changes all our plans and impacted on all the positive approaches we had adopted. There is an economic collapse taking place throughout the world at present.

We can only hope that the situation will not be long-lived and that conditions will revert to normal. I would like to take this occasion to wish the residents of Kapan a happy new year and continued health,” stated Mr. Falletta during a recent press conference. The General Manager also responded to reporter questions.   
 
What will happen three months down the road? Will there be lay-offs?

The fact of the matter is that no one can say what will happen come the new year. If the economic situation does not change, the restart of plant operations might be postponed. However, we have contingency plans that we are working on now. Let us hope that world governments take the steps necessary in order to insure that all ends on a positive note.

According to our information, the situation of Dundee Precious Metals, Deno’s parent company, is quite poor and that the company is up for sale?

This is the first I am hearing such a thing and as the General Manager of Deno Gold, I would be the first to know. Presently, nothing of the kind exists.
 
At the beginning of November, when Deno’s workers went on strike, negotiations started with government officials who were interested in the social programs implemented by the company.

For the life of me, I cannot understand what you are referring to when you talk about a social package. However, we have carried out some work within the community and have financially assisted various NGO’s, the “Kapan Fund” and the development of small and medium businesses. As regards our dealings with the government, our relations are on friendly terms. It is due to those very negotiations that the company is still operating despite a portion of the work force placed on mandatory leave. I can also add that our negotiations with government officials are continuing.

What is the operating level of the plant today and is mineral ore being exported?

60% of the work force has been sent on mandatory leave and we are not exporting any ore. We have shut down the mine and the plant. Workers still come to the plant simply to perform various maintenance and renovation jobs. This is to insure that everything is up and running when we restart exploratory work. Let me remind you that employees sent on mandatory leave work in alternating monthly shifts. All our former foreign employees have since left Armenia. Only those employees whose work is vital to the plant have been kept on the books.