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Cronimet Mining To Invest USD 50 Million In Armenia

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  • Cronimet Mining To Invest USD 50 Million In Armenia

    CRONIMET MINING TO INVEST USD 50 MILLION IN ARMENIA

    SteelGuru
    July 31 2009
    India

    Huliq reported that Cronimet Group a German metals company that owns
    largest mining enterprise in Armenia pledged to make at least USD
    60 million in additional investments to expand its operations in
    the country.

    As per report Mr Guenter Pilarski chairman of the Cronimet group
    made the pledge during a visit to Yerevan that involved talks with
    Mr Serzh Sarkisian PM of Armenia and local businessmen.

    Mr Pilarski said that the extra investments will be channeled into
    building a copper smelter in the same mountainous area close to
    Armenia's border with Iran. The project will not create any ecological
    problems."

    Mr Pilarski made similar assurances at a meeting with Sarkisian on
    July 28th. He said that the planned smelter will have modern equipment
    and technology that inflict no damage on environment.

    Zangezur currently only enriches most of cooper and molybdenum ores
    extracted from its Kajaran mines. The rest of it is turned into metal
    at the Yerevan based Makur Yerkat smelter, which is also owned by
    Cronimet. Both Zangezur and Makur Yerkat have significantly increased
    production levels in the past 3 years on the back of record high
    international prices of copper and other non ferrous metals. Virtually
    all of their production is sold abroad.

    Cronimet had teamed up with 2 Armenian firms in late 2004 to buy
    a 75% stake in the Zangezur Copper Molybdenum Plant in a USD 132
    million deal. As part of the takeover, it undertook to invest USD 150
    million in modernizing the Soviet built plant, which is located near
    the southeastern town of Kajaran and currently employs about 3,000
    people. Much of the modernization is due to be completed by the end
    of this year.
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