It has been more than 15 years since CRONIMET Group of companies has launched its business operations in Armenia. Over this period, the Group has made significant investments into the mining and metallurgy sectors of Armenia thus contributing to the overall advancement of the country’s economy and bringing in international expertise. 

The largest subsidiary of the CRONIMET Group of Companies in Armenia is the Zangezur Copper Molybdenum Combine CJSC (ZCMC); the operations of the latter are being controlled by a number of legislative acts and agreements. In the framework of the obligations undertaken, the CRONIMET Mining AG and the ZCMC have spent more than USD 400 million to fulfill ambitions investment and development program resulted in production capacities expansion, substantial performance advancement, state and community tax revenues increase. Moreover, the developments in the company always lead to the increased direct and derived employment.  

Today, the ZCMC is the largest taxpayer in Armenia having paid to the state budget AMD 22.5 billion during the 9 months of 2011. At the same time, the ZCMC is one of the largest employers in the country, ensuring more than 3100 direct work places; along with its satellite and sub-contractor companies this number exceeds 10,000. The amounts paid by its customers for the production of the company constitute noticeable portion of the currency revenues of the RA. 

The ZCMC gives special importance and care to the social issues in the country; as such the company permanently designs and carries out large number of multifaceted social, cultural, educational and charity projects throughout the country, donating large amounts for these purposes. 

The inclusive performance of the obligations undertaken by the investor and the Company to the State and to the society implies further expansion of the production facilities and this is clearly articulated in the number of agreements signed with the Government of Armenia. 

Therefore, taking into consideration the Development program of the Kajaran Copper Molybdenum Mine and the perspectives of the open-pit expansion, the Government of Armenia by its Decree 627-N, dated 28.04.2011 has declared particular territories within the administrative borders of the Syunik marz as the eminent public domain, thus altering their target value. Moreover, these territories have been leased to the ZCMC fully in accordance with the respective legislation of the RA.

In this case, we do believe that the eminent public domain is being conditioned by the benefits to be gained from the Kajaran Copper Molybdenum Mine development and open pit expansion. The further enhancement of the mine would instantaneously lead to the increase in manufacturing and export volumes, thus strengthening the stability and diversification of the Armenia’s economy and export potential, ensuring availability of jobs and revenues for the citizens and contributing to the positive branding of the country worldwide.  

In response to the article published by the “EcoLur” Informational NGO on 1.12.1011, the CRONIMET Mining AG would like to officially declare that the management of its Armenian subsidiary, the Zangezur Copper Molybdenum Combine CJSC, is accepting the applications from the citizens with issues, comments, discussions or proposals related to the Government of Armenia Decree 627-N, dated 28.04.2011 and is striving to ensure the most beneficial and acceptable solution for all these citizens. From our side, we would like to assure and to guarantee, that the ZCMC is acting solely within the frames of the existing legislation of the Republic of Armenia prudently taking into account the interests of the local population. 

The representation of the CRONIMET Mining AG in the Republic of Armenia