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GOVERNMENT RECONSIDERS TERMS OF CREDIT TO AGARAK COPPER AND MOLYBDENUM COMBINE
ARKA
Aug 27, 2009
YEREVAN, August 27, /ARKA/. The Armenian government has revised today
the terms of a loan that it allocated earlier this year to a cooper
and molybdenum plant in the southernmost town of Agarak.
Finance minister Tigran Davtian recalled that the government in late
June approved a total of $44 million in loans to three struggling
mining companies in the country's south- the Zangezur Mining ($15
million for a five year term), Armenia Molybdenum Production ($15
million for a five year term), and the Agarak Copper and Molybdenum
Combine ($14 million for a 4 year term), after receiving a $500
million Russian credit.
The minister said the $14 million loan will be allocated to Agarak
plant for a 4 year term but at LIBOR+8% interest rate and the
permission to start repaying from December 15, 2009.
"This will allow the plant to implement its investment program and
fulfill its commitments to create new jobs and resume the plant's
operation,' the minister said.
Non-ferrous metals were Armenia's number one export item in recent
years.
The dramatic decline of global demand for them and a dramatic fall
in prices in the last quarter of 2008 forced the Agarak plant to halt
its operations temporarily in February 2009.
Energy minister Armen Movsisyan said the loan, originally expected
to be spent on purchase of new equipment, could be spent NOW on
resolution of transport and logistical issues.
The Agarak cooper and molybdenum plant along with Sotk gold mines and
Ararat gold mining company are the main assets of GeoProMining company,
established in 2001. It deals with production of metals in Russia,
Armenia and Georgia.
ARKA
Aug 27, 2009
YEREVAN, August 27, /ARKA/. The Armenian government has revised today
the terms of a loan that it allocated earlier this year to a cooper
and molybdenum plant in the southernmost town of Agarak.
Finance minister Tigran Davtian recalled that the government in late
June approved a total of $44 million in loans to three struggling
mining companies in the country's south- the Zangezur Mining ($15
million for a five year term), Armenia Molybdenum Production ($15
million for a five year term), and the Agarak Copper and Molybdenum
Combine ($14 million for a 4 year term), after receiving a $500
million Russian credit.
The minister said the $14 million loan will be allocated to Agarak
plant for a 4 year term but at LIBOR+8% interest rate and the
permission to start repaying from December 15, 2009.
"This will allow the plant to implement its investment program and
fulfill its commitments to create new jobs and resume the plant's
operation,' the minister said.
Non-ferrous metals were Armenia's number one export item in recent
years.
The dramatic decline of global demand for them and a dramatic fall
in prices in the last quarter of 2008 forced the Agarak plant to halt
its operations temporarily in February 2009.
Energy minister Armen Movsisyan said the loan, originally expected
to be spent on purchase of new equipment, could be spent NOW on
resolution of transport and logistical issues.
The Agarak cooper and molybdenum plant along with Sotk gold mines and
Ararat gold mining company are the main assets of GeoProMining company,
established in 2001. It deals with production of metals in Russia,
Armenia and Georgia.