Monday, November 25 2019 18:50

ArmInfo. Inquiry Committee for Studying the legality validity and reliability of financial and  other reports submitted to the bodies of executive power and adopted  by them in the framework of investment programs in the area of  industrial metal mining at the meeting on November 25, discussed the  information provided by the General Prosecutor's Office and the  Ministry of Territorial Administration and Infrastructures of the  Republic of Armenia.

According to the assurances of the chairman of the commission,  lawmaker of the National Assembly of the Republic of Armenia from the  Prosperous Armenia faction Sergey Bagratyan, research will be carried  out at the Teghout, Sotk, Amulsar, Zangezur Copper-Molybdenum  Combine, Kajaran Copper-Molybdenum Combine and the Mgart deposit,  which is being developed by the Multi Group concern (the owner of the  concern, Gagik Tsarukyan, is the leader of the party " Prosperous  Armenia "and the eponymous faction of the Armenian parliament -  ed.note).

The prosecutor's office said that criminal cases were instituted  against the two fields. 27 companies developing metal deposits have  licenses that expire from 2025 to 2045. At the meeting it was also  clarified that none of the fields that is in the stage of active  exploitation pays income tax that is, companies do not record  profits. It was proposed to study investment programs, their volumes  and goals.

Babken Tunyan, Chairman of the NA Standing Committee on Economic  Affairs, presented a list of questions addressed to the relevant  bodies of economic entities. The importance of providing information  about the real owners of the mines, the volume of ore exports, the  number of employees of each particular organization, average wages,  etc. was also emphasized. It was also proposed to study privatization  transactions and contracts signed by companies.  The next meeting of  the committee will take place next week.  It should be noted that the  committee was formed in the National Assembly of Armenia in October  this year. The commission's work will mainly be focused on conducting  investigations at metal deposits that have received a public response  - Teghout, Amulsar, Akhtala, etc. Moreover, a number of international  companies have already expressed their willingness to assist the  commission's work without attracting budgetary funds. The total  budget of the upcoming studies will be at least AMD 100 million. The  commission includes not only lawmakers, but also public  organizations, the expert community, and international structures. An  investigation will be conducted into the legitimacy of the  development of various metal deposits and the reliability of the  declared investments. More than 670 solid mineral deposits with  confirmed reserves, including 30 metal ones, are currently registered  on the state balance of mineral reserves. About 400 are exploited,  including 23 metal ones. There are 7 copper-molybdenum deposits, 4  copper, 14 gold and gold plated for metallic minerals,  2 iron-ore  fields 1 and 2 of aluminum iron ores.

According to independent observers, the former authorities had  special agreements with subsoil users, who, using their offshore  companies, sold them ore concentrate at a reduced price. And those,  in turn, resold it at market exchange prices to end consumers. Thus,  the republic received less than half of the income from the sale of  minerals. This predatory mechanism, as a rule, is blocked in  international practice by a high level of royalties, which makes the  use of such schemes unprofitable. In Armenia, due to non-gratuitous  agreements with the previous authorities, the level of royalties was  extremely low, which created favorable conditions for concealing the  real income of companies and the active use of offshore schemes for  this. To recall, immediately after the "velvet revolution" and the  change of power in the country, mass actions began in Armenia aimed  at hindering the activities of mining companies. RA Prime Minister  Nikol Pashinyan also touched on this topic. On July 5, during a trip  to the Syunik region, he stated that if the necessary facts were  available, the Armenian government would decide on the mining  industry. The head of government emphasized that the bowels of the  country were being destroyed in Armenia, and the country's economic  growth was linked to world copper prices. "I think this is a problem,  but I don't think that the mining industry should be closed. I gave  instructions to conduct research at all polymetallic deposits for  their compliance with environmental standards. I ask you to give us  the opportunity to collect facts on the basis of which it will be  possible to adopt of this or that decision. As Prime Minister, I have  no right to just make decisions on the closure of a mine. To make a  decision, it is necessary to collect facts that should be undeniable  and based on their decisions will already be taken, "said Nikol  Pashinyan.