Armenia possesses important reserves of copper, molybdenum, lead, zinc, iron and gold. It is also rich in construction stones (tuff, marble, granite, basalt, lime-stone, etc.), semi precious stones (obsidian, agate, jasper, etc.) and other materials such as bentonite, perlite, zeolit and diatomite.
A major part of mining production is exported. These products ranked third in total Armenian exports (11%) in 2000 and 2001.
There are plans to implement a program for reviving and developing the mining industry, with the objective of raising the extraction of cooper and molybdenum, increasing the degree of processing and exporting semi-finished products instead of raw materials.
The copper, copper-polymetal and copper-molybdenum deposits in the north of Armenia contain about 475 million tonnes of mineable ore. The largest producers of copper and molybdenum concentrates are the Zangezur and Agarak Copper-Molybdenum Complexes, followed by the Kapan and Akhtala Mountain-Enrichment Complexes. In 2000, the output of both metals at the country’s mining enterprises increased by 40%. Production worth 65 million US$ was produced during the year.
Manes Yev Vallex (an Armenian-Liechtenstein joint venture) is engaged in the discovery, development, production, processing and marketing of minerals and metals. Current metallurgical operations are conducted at Alaverdi Copper Smelter located in the North of Armenia. After the re-starting of operations in February 2000, M&V has produced 7200 tonnes of blister copper during the last 10 months of 2000. The target is about 11,000 tonnes of blister copper in the year 2001. Currently, 550 workers and administrative staff are employed. In 2000 shareholders of M&V approved a strategic plan for the expansion of the company’s mining-metallurgical operations in Armenia. In particular, the plan calls for development of a mining-metallurgical complex in North Armenia via continuously expansion of copper production in Alaverdi Smelter and the development of new copper mines within the project "Armenian Copper"
Armenia's iron ore reserves total over 294 million tonnes. Zangezur tailings dumps contain over 200 million cubic meters of waste with an average iron content of 2.5%. The iron can be recovered by magnetic separators to obtain 50,000- 60,000 tonnes of 65% concentrate a year.
Five important companies are still to be privatized (Agarak copper molybdenum factory, Kapan core enriching factory, Zangeszur copper molybdenum, Armgold, and Ani-pemza plant).
Gold
Along with other metal deposits Armenia possesses some gold deposits. First Dynasty Mines (Canada) has established a joint venture with Armgold, the state gold mining enterprise, to recover gold from the Sotk (also known as Zod), Meghradzor mines, and process the ore at the Ararat Gold Refining Factory. Moreover, First Dynasty Mines Ltd. recently purchased the 50% government-held block of shares in the Ararat Gold Recovery Compnay from Armgold CJSC. 2.1 million tonnes of ore are expected to be extracted within the next seven years, and 8 tonnes of gold can be recovered from this quantity of ore.
Aluminum Foil Production
Armenia is the biggest manufacturer of aluminum foil in the region, as well as the largest producer of aluminum household foil and related products in the Middle and Near East.
Siberian Aluminum (Russia) Co. and Kanaker aluminum plant (known as KANAZ) have formed a joint venture Armenal. KANAZ used to produce up to 25,000 tonnes of aluminum foil and 50,000 tonnes of rolled metal annually and was the main supplier to the USSR market. Siberian Aluminum has worldwide export markets. Now, over 25000 metric tonnes of this material is produced yearly, as well as different kinds of aluminum packaging products. The Company exports its production to Russia, Iran and USA.
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