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WHY DID GEORGIA MAKE STEPANAVAN GOLD FACTORY SHUT DOWN? (VIDEO)
October 7 2013
"As long as other branches of our country's economy is still collapsed,
a part of it is just developing, Armenia, wittingly or unwittingly,
even to the detriment of the environment, or even to the detriment
of the people's health, will continue developing and maintaining the
mining industry," - such opinion was made by Chairman of Republican
Union of Employers of Armenia Gagik Makaryan, answering the question
of Aravot.am whether it is possible to go by the path of green economy
with today's aggressive paces of mining industry. Mr.
Makaryan observed that it is the time for the government to start
thinking about the development of other economic sectors that
would be a counterbalance to the mining industry. "The economy
must be diversified in all branches. In other words, even if the
industry volume remains the same in the total unit weight, the
other sectors develop and mining industry decreases. If the unit
weight of this falls, it would be also easier to make a political
decision." To the question of Aravot.am as to which branches may
be a counterbalance to the mining industry, Mr. Makaryan brought
the example of food processing. "Today, wine factories are built,
modernized; brandy production, fruit vodkas, quite serious types of
productions have been started to develop, fresh fruit-vegetables. I
think if all this together is about $ 200 million, this number can
be doubled in 2-3 years. If you add a few factories, plantations
be provided, subsidizing processors, and plantation cultivators,
the volume will grow significantly. Russian and European markets
like the Armenian food, and also quotas need to be obtained in those
markets." To our question as to why all of this is not done now,
maybe it is more advantageous to the Government for the investor
to come and make the investments in mining industry, pay respective
taxes to the state budget, rather than for the government spending
money for the development of branches counterbalancing this sector,
Mr. Makaryan said. "Now they approach negligently, the subsidies are
not much, bank provide credit with high interest rates, the business
environment is quite poor, the issues of certification for export
are not regulated, and the government has not put all its leverages
in this work completely, it should devote to the work at large. And
it is that the state receives the greatest benefit from the mining
industry, mining industry is mainly export-oriented, and in this
case the VAT is returned for the part, it just provides employment,
and pays certain taxes, but the losses, since they become obvious
in the course of years, vigilance has become less." Today, during
the press conference on "Is it possible to transform the economy
of Armenia to a "green" one?" held in "EcoLur" press club, Gagik
Makaryan said that if Armenia takes the path of green economy, the
share of mining industry in GDP should be reduced. To the question
whether the mining industry is expanding every year, but not much
changes is noticed in the GDP of this sector, Mr. Makaryan said,
"As of 2012, a new category of metals mining has not increased, it
has remained at the existing level. The fact that they are doubled,
is not so, the price for metals in the international market has
fallen, even though the volumes have increased, the prices in the
market are dropped." Details in the video To the question that, on
the one hand, they are trying to develop tourism, on the other hand,
new mines are operated, Mr. Makaryan opined that there is no adequate
counterbalance to the mining industry, and brought an interesting
example: "1.5 years ago, the Gold factory opened in Stepanavan was
shut down very soon because the demand for it was received from the
Government of Georgia claiming that the factory in Stepanavan harms
the environment of the region of their country.
Nelly Babayan
Read more at: http://en.aravot.am/2013/10/07/161917/
October 7 2013
"As long as other branches of our country's economy is still collapsed,
a part of it is just developing, Armenia, wittingly or unwittingly,
even to the detriment of the environment, or even to the detriment
of the people's health, will continue developing and maintaining the
mining industry," - such opinion was made by Chairman of Republican
Union of Employers of Armenia Gagik Makaryan, answering the question
of Aravot.am whether it is possible to go by the path of green economy
with today's aggressive paces of mining industry. Mr.
Makaryan observed that it is the time for the government to start
thinking about the development of other economic sectors that
would be a counterbalance to the mining industry. "The economy
must be diversified in all branches. In other words, even if the
industry volume remains the same in the total unit weight, the
other sectors develop and mining industry decreases. If the unit
weight of this falls, it would be also easier to make a political
decision." To the question of Aravot.am as to which branches may
be a counterbalance to the mining industry, Mr. Makaryan brought
the example of food processing. "Today, wine factories are built,
modernized; brandy production, fruit vodkas, quite serious types of
productions have been started to develop, fresh fruit-vegetables. I
think if all this together is about $ 200 million, this number can
be doubled in 2-3 years. If you add a few factories, plantations
be provided, subsidizing processors, and plantation cultivators,
the volume will grow significantly. Russian and European markets
like the Armenian food, and also quotas need to be obtained in those
markets." To our question as to why all of this is not done now,
maybe it is more advantageous to the Government for the investor
to come and make the investments in mining industry, pay respective
taxes to the state budget, rather than for the government spending
money for the development of branches counterbalancing this sector,
Mr. Makaryan said. "Now they approach negligently, the subsidies are
not much, bank provide credit with high interest rates, the business
environment is quite poor, the issues of certification for export
are not regulated, and the government has not put all its leverages
in this work completely, it should devote to the work at large. And
it is that the state receives the greatest benefit from the mining
industry, mining industry is mainly export-oriented, and in this
case the VAT is returned for the part, it just provides employment,
and pays certain taxes, but the losses, since they become obvious
in the course of years, vigilance has become less." Today, during
the press conference on "Is it possible to transform the economy
of Armenia to a "green" one?" held in "EcoLur" press club, Gagik
Makaryan said that if Armenia takes the path of green economy, the
share of mining industry in GDP should be reduced. To the question
whether the mining industry is expanding every year, but not much
changes is noticed in the GDP of this sector, Mr. Makaryan said,
"As of 2012, a new category of metals mining has not increased, it
has remained at the existing level. The fact that they are doubled,
is not so, the price for metals in the international market has
fallen, even though the volumes have increased, the prices in the
market are dropped." Details in the video To the question that, on
the one hand, they are trying to develop tourism, on the other hand,
new mines are operated, Mr. Makaryan opined that there is no adequate
counterbalance to the mining industry, and brought an interesting
example: "1.5 years ago, the Gold factory opened in Stepanavan was
shut down very soon because the demand for it was received from the
Government of Georgia claiming that the factory in Stepanavan harms
the environment of the region of their country.
Nelly Babayan
Read more at: http://en.aravot.am/2013/10/07/161917/