Vedanta Resources Indian Company Going to Attract Investments to Gold Mining in Armenia

PanARMENIAN.Net - Vedanta Resources plans to enter the precious metals business by investing in gold as the sky-rocketing prices of the commodity tempt India's leading non-ferrous metal producer. The London-listed Vedanta may invest in Sterlite Gold, which is now controlled by the Anil Agarwal family holding company — Volcan Investments — and is out of the Vedanta fold. Sterlite Gold's Armenian operation currently require $70-80 m for expanding its operation. Vedanta is likely to step in by investing the money and thereby picking up a stake in the company, reported the Economic Times.



The Armenian operations are controlled through Ararat Gold Recovery Company (AGRC), a gold mining and processing company in Armenia, and is fully owned by Sterlite Gold. Sources said the group is yet to decide on the move and the route to be followed. "A decision on whether to bring in funds through Vedanta or through the holding company is being debated," the source said. Vedanta currently has a negligible presence in gold but is a major player in copper, zinc and aluminium. The only downside of investing in the gold , is that current prices of the metal are at an all-time high. Entry into gold production will, however give it better valuations as the future outlook for gold is very positive.



AGRC has two gold mines at Meghradzor and Zod and a processing plant at Ararat in Armenia. It has plans of shifting and upgradation of some facilities of t h e Ararat plant and to build a brand new plant at Zod, which can treat gold ore. The mine life, based upon proven reserves and proposed capacity expansion, will be more than 10 years.The plans envisage shifting and upgradation of some facilities of t h e Ararat plant and to build a brand new plant at Zod, which can treat gold ores.AGRC is also trying its luck with possible diamond deposits at Zod.