EcoLur
Business viewpoint on mining problems: in his interview with EcoLur “Dundee Precious Metals Kapan” CJSC Director Hrach Jabrayan presented his viewpoint.
- Mr. Jabrayan, Energy and Natural Resources Minister Yervand Zakharyan announced that the mining is currently facing hard time because of decrease in international prices of metals. What are the impact and consequences of the crisis on the international market of the metals. Whether there were changes and redundancies in the company?
- The Minister surely possesses correct information, there is a tendency of decrease of copper and metal prices in the international market. Our mine is polymetallic- we have gold, silver, copper and zinc, but the most profitable are gold and copper. These reductions definitely have huge negative impact on our incomes and will continue to have in recent three years. Since August 2011 the gold price has reduced by about 100%, while copper price has decreased by about 230%. Nevertheless, we haven’t had any redundancy – in 2011 we had 1200 employers.
- During 10 years we have invested about US $225 million. In 2015 we invested US $13 million capital and US $37 million operational expenses.
- Still in 2014 the Ministry of Finances drew up US $ 3.8 billion fine, which as the Finance Ministry announced, was imposed for the development of mines not provided to the company under its license. You appealed the decision of fine of the Finance Ministry. In which stage are the court hearings? Eventually, did they manage to confiscate this sum?
No, confiscation is not forceable, we have called upon to court in this regard, and as the law says the state can’t confiscate this amount unless the proceedings end. Currently the next court hearing is appointed on 29 February.
- In 2015 the company paid taxes about 3.4 billion AMD. In 2014 this amount was 5.2 billion AMD: what such difference has been conditioned with?
- The first cause is the decrease in income in 2015 as compared with 2014. We have reduction of income of several million dollars, as metal prices have decreased.
February 11, 2016 at 19:15