Monday, March 9 2020 15:07
Alexandr Avanesov

From January 1, 2021, Armenian entities developing mines will have to  pay taxes on production waste

From January 1, 2021, Armenian entities developing mines will have to  pay taxes on production waste

ArmInfo. From January 1, 2021, Armenian business entities developing mines will have to pay taxes on production waste. Minister of Environment of the Republic of Armenia  Erik Grigoryan  announced on January 9 at a meeting of the  Parliamentary 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.   According to him, from January 1, 2021, payments to the state budget  will begin, which has never happened before. At the same time, the  amount of taxes will vary depending on the degree of environmental  hazards of the mine and will start from 40 thousand drams. Moreover,  in this case we are talking about both polymetallic and non-metal  mines.

The Minister also said that it is planned to begin to monitor the  exported ore. The ministry proposes to establish a special point at  customs where ore volumes and quality will be monitored, and  laboratory tests will be conducted. In turn, the partners, according  to the minister, offer to conduct research in international  laboratories before the start of export deliveries. "In any case,  everyone agrees with the need to control exports," Erik Grigoryan  said.

He also said that the RA government is exploring the possibility of  land reclamation in 10 tailing dumps out of 49, inherited from Soviet  times. To solve this problem, about 14 billion drams will be needed,  which will be provided for in the state budget of the country in  2021.

Instead of the 5th class hazard, the Ministry established a 4th  hazard class for tailings. The existing legislative and regulatory  acts also include such a thing as a sanitary zone.

The Ministry also intends to tightly control the real resources of a  particular field. As an example, the minister cited one of such  mines, where gold resources were estimated at 8 tons, after which  they were increased at 35.6 tons, which turned out to be overrated,  and the company that was developing the mine refused to further  develop it and left his. As a result, the state suffered millions of  dollars worth of damage.  The draft law "On Environmental Impact  Assessment" has also been submitted to the Prime Minister's office,  one of the most important components of which will be an impact  assessment before the start of large-scale work.

In general, as the minister noted, the task of the state will not be  the application of penalties, but the prevention of the possible  impact of a project on the environment - water, air, and land. In  this regard, the work done will be monitored quarterly, which will be  carried out in licensed laboratories. In case of violations,  revocation of permits for the development of the mine is possible. It  is also envisaged to revise land impact assessment. For these  purposes, the base and cadastral value of land will be used, which  will increase the volume of corresponding deductions by 50 times. If  the specified volumes of water are exceeded, a fine of 2 drams per 1  cubic meter will be applied. Thus, the size of fines can reach up to  70 million drams instead of the current 50-60 thousand drams.

The Minister also touched on the situation around the Artsvanik mine,  which developed by the Zangezur Copper-Molybdenum Plant. According to  the minister, the company has already received $ 12.5 million for the  development of the mine, however, the Ministry refused to expand the  area of the company, demanding in return to solve a number of  environmental issues. In particular, the company pledged to restore  about 70 hectares of land. A criminal case has was opened on the fact  of violation of water pollution in the Voghji River, and criminal  cases were opened against Agarak copper-molybdenum mining and  processing complex  and the Teghut mine, where the condition for the  restoration of 300 hectares of forests has not been fulfilled.

It should be noted that at the end of last year, 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 was established in the Parliament of RA. The  structure will operate for six months with the possibility of  prolonging this period. The total budget for upcoming studies will be  at least 100 million drams. Not only MPs will be involved in the work  of the Committee, but also public organizations, the expert  community, and international structures. The task of the  parliamentary structure will be to conduct an investigation into the  legality of the development of certain metal mines and the  reliability of the declared investments.

The Committee's work will mainly be focused on conducting  investigations at mines that have received public outcry - Teghut,  Amulsar, Akhtala, etc. In 2017, companies engaged in the development  of metal mineral mines invested a total of $ 235 million. No data for  2018. Meanwhile, as previously noted by the Ministry of Energy  Infrastructures and Natural Resources of the Republic of Armenia  (currently the Ministry of Territorial Administration and  Infrastructures, Ed.) according to the licenses granted, about 3  billion drams will be invested in geological development over the  next three years. In contrast to the extraction of metal ores, the  volumes of which did not undergo significant changes last year, the  output in total terms replenished by 30%, which is associated with an  increase in world ore prices.

It should be noted that on the state balance of mineral reserves at  present more than 670 mines of solid minerals with confirmed  reserves, including 30 metal, are registered. About 400 of these d  mines are developed, including 23 metal ones. There are 7  copper-molybdenum mines, 4 copper, 14 gold and gold- polymetallic  mines, 2 iron ore and 1 aluminum ore in metallic minerals.  Immediately after the "velvet revolution" and the change of power in  the country, massive actions began in Armenia aimed at hindering the  activities of mining companies.

POST A COMMENT
Input digits     


News
Ameriabank`s Trade Finance portfolio enriched with four prestigious awards from EBRD and IFCAmeriabank`s Trade Finance portfolio enriched with four prestigious awards from EBRD and IFC
On Oct 4- 7, Yerevan to host WCIT for second time On Oct 4- 7, Yerevan to host WCIT for second time 
Mirzoyan began his speech at International Conference on Nuclear  Security by expressing condolences to IranMirzoyan began his speech at International Conference on Nuclear  Security by expressing condolences to Iran
R&D is most important element of EAEU countries integration and  R&D is most important element of EAEU countries integration and  "entrance ticket" to competitive world - Russian economist
Armenia, EFSD sign agreement for USD 100 million financial credit Armenia, EFSD sign agreement for USD 100 million financial credit 
Armenia-UAE economic and technical cooperation commission to meet in  Abu Dhabi Armenia-UAE economic and technical cooperation commission to meet in  Abu Dhabi 
Team Solutions presents its ZangeZOR product at 4Future Banking int`l  forumTeam Solutions presents its ZangeZOR product at 4Future Banking int`l  forum
Armenia`s government plans to implement housing programme for  forcibly displaced people in next 10-12 yearsArmenia`s government plans to implement housing programme for  forcibly displaced people in next 10-12 years
Communications Museum re-opened in YerevanCommunications Museum re-opened in Yerevan
Double increase in turnover tax rate will stimulate transition to  common taxation system: Deputy MinisterDouble increase in turnover tax rate will stimulate transition to  common taxation system: Deputy Minister
Rocket Line - now for 60 months: Idram and IDBankRocket Line - now for 60 months: Idram and IDBank
Rising prices for services, going into shadows and closing businesses  - incomplete list of Rising prices for services, going into shadows and closing businesses  - incomplete list of "expectations" from revision of turnover tax  rate from SME Cooperation Association President
Liability for misrepresented information is proposed in ArmeniaLiability for misrepresented information is proposed in Armenia
Government proposes to make changes to car trade system within  Government proposes to make changes to car trade system within  "Trade-in" program
Armswissbank attracts us$ 10 million loan package from EBRD to support competitiveness and green transitionArmswissbank attracts us$ 10 million loan package from EBRD to support competitiveness and green transition
Armenian lawyers unwilling to pay taxes on universal basisArmenian lawyers unwilling to pay taxes on universal basis
EU Commissioner: EU will continue to contribute to economic  development of ArmeniaEU Commissioner: EU will continue to contribute to economic  development of Armenia
PM discusses opportunities for diversifying Armenian economy with WB,  IFC management PM discusses opportunities for diversifying Armenian economy with WB,  IFC management 
EBRD President considers programs implemented by Bank useful for  development of private sector in ArmeniaEBRD President considers programs implemented by Bank useful for  development of private sector in Armenia
EBRD lends up to US$ 10 million to Armeconombank for MSME on-lendingEBRD lends up to US$ 10 million to Armeconombank for MSME on-lending
Armenia benefits greatly from influx of capital and IT specialists -  EBRD chief economistArmenia benefits greatly from influx of capital and IT specialists -  EBRD chief economist
Finance Ministry, French Development Agency sign cooperation  agreement for 2024-2027Finance Ministry, French Development Agency sign cooperation  agreement for 2024-2027
Idram Junior and Koreez signed a memorandum of cooperationIdram Junior and Koreez signed a memorandum of cooperation
During the 33rd EBRD Business Forum, Ardshinbank hosted a panel discussion on economic and trade sanctions.During the 33rd EBRD Business Forum, Ardshinbank hosted a panel discussion on economic and trade sanctions.
Government to allocate additional AMD 3 billion to finance state  order for healthcareGovernment to allocate additional AMD 3 billion to finance state  order for healthcare
EBRD provides $10 million loan to ArmSwissBan to support  competitiveness and green transition of MSMEsEBRD provides $10 million loan to ArmSwissBan to support  competitiveness and green transition of MSMEs
Pankin: Armenia`s suspension of CSTO funding isn`t tragedyPankin: Armenia`s suspension of CSTO funding isn`t tragedy
Armenian government approves program for providing housing to  families from Artsakh; expenses estimated at  AMD 10-12 billion Armenian government approves program for providing housing to  families from Artsakh; expenses estimated at  AMD 10-12 billion 
EBRD Governors re-elect President Odile Renaud-Basso for second termEBRD Governors re-elect President Odile Renaud-Basso for second term
EBRD, USAID to develop transport infrastructure of Armenia,  Azerbaijan, Georgia EBRD, USAID to develop transport infrastructure of Armenia,  Azerbaijan, Georgia 
No specific dates for the entry into force of the law on compulsory  life insurance for tourists visiting Georgia - RA MFANo specific dates for the entry into force of the law on compulsory  life insurance for tourists visiting Georgia - RA MFA
Pashinyan: all those who have the necessary skills, abilities and  desire can make a profit in ArmeniaPashinyan: all those who have the necessary skills, abilities and  desire can make a profit in Armenia
Odile Renaud-Basso: Armenian economy continues to grow despite  numerous negative factorsOdile Renaud-Basso: Armenian economy continues to grow despite  numerous negative factors
Minister of Territorial Administration and Infrastructures refrains  from specifying North-South Road Corridor Investment Program`s  implementation costs and deadlines Minister of Territorial Administration and Infrastructures refrains  from specifying North-South Road Corridor Investment Program`s  implementation costs and deadlines 
EBRD improves Armenia`s GDP growth forecast for 2024 from previous  4.5% to updated 6.2%EBRD improves Armenia`s GDP growth forecast for 2024 from previous  4.5% to updated 6.2%
EBRD promises unprecedented investments in Armenian economyEBRD promises unprecedented investments in Armenian economy
FMO provided Ardshinbank with a guarantee for a credit portfolio of 20 million US dollarsFMO provided Ardshinbank with a guarantee for a credit portfolio of 20 million US dollars
Lending for construction of southern section of Sisian-Kajaran road  will be largest program ever implemented by EBRD in Armenia - Bank  President Lending for construction of southern section of Sisian-Kajaran road  will be largest program ever implemented by EBRD in Armenia - Bank  President 
French Development Agency, Armenian government to expand cooperation  areas and programs` scope French Development Agency, Armenian government to expand cooperation  areas and programs` scope 
The Power of One Dram Sums up the Two-Year Program with Teach for ArmeniaThe Power of One Dram Sums up the Two-Year Program with Teach for Armenia
Noubar Afeyan willing to use his potential to strengthen Armenia Noubar Afeyan willing to use his potential to strengthen Armenia 
Ministry of Economy of Armenia denies that growth in agricultural  exports is due to re-exportsMinistry of Economy of Armenia denies that growth in agricultural  exports is due to re-exports
Finance Minister: Armenia`s GDP generation growth potential increased  from 4-4.5% to 5.5-6%Finance Minister: Armenia`s GDP generation growth potential increased  from 4-4.5% to 5.5-6%
EBRD funds customs and logistics centre in SyunikEBRD funds customs and logistics centre in Syunik
Grigori Zakaryan: “Capital markets have a crucial for economic development.”Grigori Zakaryan: “Capital markets have a crucial for economic development.”
Ambassador of Kazakhstan: priorities for development of Eurasian integration proposed by Armenia will allow us to intensify mutually  beneficial cooperation within EAEUAmbassador of Kazakhstan: priorities for development of Eurasian integration proposed by Armenia will allow us to intensify mutually  beneficial cooperation within EAEU
EBRD and the European Union are joining forces with Acba bank to boost the availability of funding for Armenian MSMEsEBRD and the European Union are joining forces with Acba bank to boost the availability of funding for Armenian MSMEs
Thanos Arvanitis: The time has come for Armenia to accelerate reformsThanos Arvanitis: The time has come for Armenia to accelerate reforms
Armenia to host 33rd EBRD Business Forum with flagship sponsorship of ArdshinbankArmenia to host 33rd EBRD Business Forum with flagship sponsorship of Ardshinbank
EAEU economic operators will become more recognizable when carrying  out foreign economic activitiesEAEU economic operators will become more recognizable when carrying  out foreign economic activities
Martin Galstyan: If background is favorable, reduction in key rate  will result in lending rates decreaseMartin Galstyan: If background is favorable, reduction in key rate  will result in lending rates decrease
About 75% of Armenia`s exports are precious metals and stones, which  speaks of vulnerability of Armenia`s economyAbout 75% of Armenia`s exports are precious metals and stones, which  speaks of vulnerability of Armenia`s economy
92% tax revenues recorded in Armenia in 1st quarter of 2024 92% tax revenues recorded in Armenia in 1st quarter of 2024 
IDBank issues the 2nd tranche of dollar bonds of 2024IDBank issues the 2nd tranche of dollar bonds of 2024
Armenia to be next country to host ACE programArmenia to be next country to host ACE program
Armenia agrees to EBRD expansion Armenia agrees to EBRD expansion 
Alkis  Drakinos : It is necessary to first pick the low hanging fruit  to ensure developmentAlkis  Drakinos : It is necessary to first pick the low hanging fruit  to ensure development
CBA Governor: Overheating of prices in Armenian real estate market  may have ranged from 20-30%CBA Governor: Overheating of prices in Armenian real estate market  may have ranged from 20-30%
Government writes off 469 financial obligations of Artsakh citizens  on loans secured by goldGovernment writes off 469 financial obligations of Artsakh citizens  on loans secured by gold
Food products, services cause of 0.8% inflation in Jan-Apr 2024 Food products, services cause of 0.8% inflation in Jan-Apr 2024 
Read more


Exchange rates
20.05.2024
RUB4.290.03
USD387.970.37
EUR421.761.64
GBP492.842.53
CAD284.920.76
JPY24.910.04
CNY53.640.01
CHF426.900.68