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Marine Martirosyan

Why International Mining Companies Flock to Armenia: Low Royalties and Lax Oversight

A report recently released by two environmental activists in Armenia suggests that international mining companies are flocking to Armenia because the government is incredibly lax when it comes to levying environmental usage fees.

The report, “Environmental and Environment Usage Payments in the Mining Sector” was prepared by Marineh Baghdasaryan, a graduate of the State Institute of Economics, and Bedya BGO President Erik Grigoryan.

Comparing Armenia’s mining sector with that of the USA, Great Britain and Germany, the authors found that another probable attraction for international companies is that the royalties for extracting metal ores in Armenia is much less.

In the United States, for example, royalties paid by mining companies to the government stand at 30%, followed by Canada (25%), Great Britain (20%), Great Britain (15.8%) and China (10%).

In Armenia, the royalty rate is 4+%.

Baghdasaryan says that other countries also tax pollution discharges while Armenia does not.

“Our comparative data shows that strict tax mechanisms operate in other countries and that responsible mining is the norm, something that isn’t the case in Armenia. Here, it’s an open wide sector and creates a favorable business climate for foreign investors,” Baghdasaryan said.

Their report was made public at an international conference “Responsible Mining in Armenia: Opportunities and Challenges” held in the Armenia Marriott Hotel in Yerevan this past March 25.

At the conference opening, opponents of unbridled and unsupervised mining in Armenia staged a counter-conference outside the hotel.

Baghdasaryan noted that while the largest taxpayer in Armenia is the Zangezour Copper-Molybdenum Combine (paying 37.8 billion AMD in taxes in 2013), only a tiny portion is in the form environmental and natural resource usage fees.

Comments (4)

barséghian
Diginin hédazodman hiyanalik, hebardém, payts amén indj barzé, midjazgayn avazagabédnér mendz sér ounin mér adjkérou, méndz gachark bédoutian hamadzaynagir storagrorin, talan bédoutian harkin, penoutian, i verdjo té aradjnaherd karakatsinérou spanél arordjabés. Lav hasgetsa Digin ?
Bill Mavridis
The main problem with mining in Armenia is that the Government does not enforce its own regulations. The second problem is that local functionaries are so poorly paid, its like giving them permission to collect bribes and overlook problems. The third problem with mining in Armenia is that mining companies are not required to fully develop and fully fund a closing plan, so the risk of environmental cleanup is offloaded to people of Armenia wen mining operations end. The fourth problem with mining in Armenia is there are no continuous monitoring, upkeep and repair plans, and emergency breach plans related to tailings dams created by mining companies. The fifth problem with mining in Armenia that tailings dam are not lined with membranes and secured. There are no effluent control and requirements to treat all effluent leaving the mine and the tailings dams for the life of the mine and beyond. There are many other problems that can be cleaned up if the mining operators, directors and management are held criminally liable for environmental pollution or abandonment of operations or tailings dams. Jail is a huge incentive to be good.
Hayk
Hayastann avirum en aynpisi temperov, inchpes chen varvel nuynisk afpikakan petutyunneri het. Ed bnapahpanutyan volorti bolor patasxanatunerin harkavor e qshel, sksats naxararic. Ayo, Hrach, henc ed en uzum, isk dra demn arnelu miak dzev@ MM -@ andamakceln e, vorovhetev ed depqum djvarutyunner en arajanalu ed talanchineri hamar orensdroren.
Vardan
Հայկ ասեմ քեզ, որ շատ հիմար բաներ ես գրում: Մի քիչ օրենքներ կարդա, որ հասկանաս: Առաջարկում եմ կարդաս ՀՀ Ընդերքի մասին օրենսգիրքը: Իսկ Էրիկին և Մարինեին հիշեցնեմ, որ Էրիկը աշխատում էր ԲՆ-ում, իրա օրոք այդ համակարգը գործում էր, իսկ ինքը այդ վարչության աշխատակիցն էր: Խնդրում եմ գրեք, թե ինչքան ռոյալթի էր հավաքվել և ինչքան բնօգտագործման վճար: Ես կասեմ, որ ռոյալթի ընդհանրապես հավաքված չէր՝ 2004-2012 թթ. համար: Բա ինչի համար չէր բարձրաձայնում Էրիկը: Թե այսօր աշխատանքից հանել են նոր հիշել է:

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