RA government to grant $10 million loan to Zangezur copper and molybdenum plant

PanARMENIAN.Net - The Armenian government will grant a $10 million loan to the Zangezur copper and molybdenum plant for implementation of the second stage of the plant development program.



"A 2-stage agreement was signed with the government four years ago, when the plant was privatized," director Maxim Hakobyan told a news conference today.



"The first stage included a 50 percent increase of the plant capacity and job creation, construction works and equipment purchase," he said, adding that although $330 million was invested in the plant during four years, some $40-50 million are needed to complete construction works.



"The funds will help increase the output volume and offer up to 10 000 job opportunities," Mr. Hakobyan said.



He also informed that presently the average salary of a plant worker makes $700 against $230 in 2004.



Zangezur copper and molybdenum plant is situated at the Armenian-Iranian border. It was privatized in 2004 for $132 million by four companies. German Cronimet holds 60 percent of the stocks. 15 percent belongs to Iron plant (major internal customer). Armenian molybdenum production CJSC and Zаngezur Mining Ltd. hold 12.5 percent each.