Cronimet could invest $200 mln into Armenian copper mine tailings recycling
YEREVAN. Oct 16 (Interfax) - Germany's Cronimet Mining plans to raise $200 million in funding to build a plant to recycle tailings at the Zangezur Copper and Molybdenum Combine in Armenia, Deputy Energy and Natural Resources Minister Levon Shakhverdian said at a cabinet meeting.
The government approved a memorandum of intent required to launch the project. The government, Cronimet, Zanegur, the VSEI Group and LLC Alyoti will sign the document.
A business plan for the project, which should achieve 95%-98% tailings utilization and create 1,800 jobs, should be submitted within two months.
Vazgen Safarian, head of the Armenian Manufacturers Union, has said 1.5 billion tonnes of tailings have accumulated in dumps around the country. He said 82 million tonnes of tailings were capable of yielding 10,000 tonnes of refined copper, 3 million-4 million tonnes of iron, 250,000 tonnes of elemental sulfur, 170 tonnes of tellurium, 3.6 tonnes of gold and 142 tonnes of silver and other alloys. Armenia has 17-19 tailings dumps and the new plant could operate for 30 years.
The Zangezur combine is owned by Cronimet Mining (60%), OJSC Pure Iron (15%) and CJSC Armenian Molybdenum Production and LLC Zangezur Mining (12.5% each).
The combine operates the Kajaran field, the FSU's richest in terms of copper content. It was privatized in December 2004 for $132 million.
