Mineral industry of Armenia

The mineral industry is one of the main sectors of the Armenian economy and in 2017 accounted for 30.1% of its exports.

Armenia is a major producer of molybdenum. The Zangezur copper-molybdenum complex possesses large molybdenum reserves that are concentrated in the Kajaran deposit. Besides molybdenum, Armenia has significant deposits of copper and gold; smaller deposits of lead, silver, and zinc; and deposits of industrial minerals, including basalt, diatomite, granite, gypsum, limestone, and perlite.

General characteristics
The share of the mining industry in Armenia's gross output is close to 5% (1990's). In 2002, 20 ore deposits with approved reserves developed 6 are: copper-molybdenum Kadzharanske (Kadzharan) and Aharakske, copper Kapanske (Kapan), polymetallic-gold Shaumyanske (Shaumyan), as well as gold-- Sotske (Zod) and Mehradzorske (Meghradzor ) B. produces refined copper, primary aluminum (on imported alumina), rolled and foil aluminum, molybdenum, zinc, lead, barite in concentrates, gold, silver, tellurium, selenium, rhenium(in slimes and concentrates), copper sulfate, sulfuric acid, and others. Diamond cut is carried out. Armenia imports fuel oil, coal and other energy sources.

At the beginning of the XXI century. the Armenian government has enacted a new law on the exploration and development of mineral deposits, after its adoption by the national parliament. This law will replace the mining code existing since 1992. It has been developed with the participation of experts from the European Union and is based on the "Western" model of such acts. It describes the procedures for acquiring licenses, the rights and obligations of their recipients, which promote the attraction of foreign investment [Mining J. - 2002. - 338, в "- 8668. - Р. 37-38]. In addition, at the beginning of the XXI century. two major projects - Remet and Molybdenum - have been developed and implemented in the republic, which include the creation of a scientific and industrial base for the metallurgical processing of copper, molybdenum, ash containing, polymetallic concentrates to produce high purity metals.

Mines
According to the Armenian Development Agency, Armenia has more than 670 mines of construction and aggregate minerals, including 30 base metal and precious metal mines. Among these mines, about 400 mines, including 22 base metal, non-ferrous metal and precious metal mines are currently being exploited.

Among the base metal and precious metal deposits, there are 7 copper-molybdenum mines, 3 copper mines, 13 gold and gold-polymetallic mines, 2 polymetalilc mines and 2 iron ore mines.

In addition to those mines registered in the state inventory of mineral resources, there are an additional 115 deposits of various deposits that have been discovered.

Production
In 2017 mining industry output with grew by 14.2% to 172 billion AMD at current prices and run at 3.1% of Armenia's GDP.

In spite of the global economic crisis of 2008, mining production and revenues grew significantly in 2009 due to a rise in global prices of copper, gold, and other base metals.

In 2005, seventeen mining and metallurgical enterprises were in operation; the largest enterprises mined copper and molybdenum ore or extracted gold from tailings. The country also produced aluminum foil based on raw materials imported from Russia and had a diamond cutting industry using imported raw materials. The country had almost no domestic fuel production and relied for electric power on a nuclear powerplant and hydroelectric plants. It imported fuel for its nuclear powerplant and natural gas from Russia.

The value of mineral production in 2005 totaled $180 million or about 5% of the gross domestic product(GDP). Mining and nonferrous metallurgy accounted for 55% of the value of industrial production. The mineral sector accounted for 11% of the value of the country’s capital stock.

In 2005, in the aggregate, the volume of metallic ores mined decreased although nonmetallic ore production increased. The volume of output in both the ferrous and nonferrous metallurgical sectors increased compared with output in 2004. The output volume of individual mineral commodities with respect to output in 2004 varied by commodity.

Separate industries
Molybdenum and copper.
In 2001 (2000), Armenia produced 16,800 tons (14,000 tons) of copper concentrate. Production of molybdenum concentrate in 2001 (2000) was 7,500 tons (6,900 tons). Sales of concentrates brought to US $ 8.5 million Almost all concentrates were exported. All mines have increased production.

In the former USSR, up to 25% of the production of molybdenum concentrate accounted for the share of Armenia. In 2001, 12 genera were exploited and prepared for exploitation. non-ferrous and precious metals. In particular, mining works are being carried out at the Kajaran and Agarak copper and molybdenum genera., Ready for exploitation of Mgarte gold ore deposit, Sotka gold ore deposit is being developed. The issue of gold mining in the country is controlled by JV "Ararat Gold Mining Company". Under the underground way, Kapanske, Shamlug and Alaverdi copper, Akhtal polymetallic and Tertetasarsk gold and polymetal genera are being developed.

The largest producer of copper and molybdenum in the country is the Zangezur Copper and Molybdenum Combine(Zangezur Copper and Molybdenum Combine (ZCMC)), which works on raw materials of the Kajaransky and others. childbirth in 2000 the extraction and processing of ore by the industrial complex amounted to 7.1 million tons, in 2001 - 7.6 million tons of Rodov. worked out in an open way. Ores contain 0.055% molybdenum and 0.3% copper and enrich themselves with flotation at their own factory. The actual productivity of the plant in 2000 amounted to 60-70% of the design power. The main reasons for the decline in production are a sharp drop in prices for molybdenum, and more recently for copper; blockade of transport communications; lack of funds for updating basic and replenishment of working capital. Maintenance operations in the quarry are led by ledges in height of 15 m. Drilling wells - boring machine tools, multi-row spacing. The final products of the plant are 15% copper and 50% molybdenum concentrates.

30 km south of the Zangezur industrial complex there is the Agarak copper-molybdenum combine, which exploits the same stock-bearing deposit, which, according to the reserves and quality of ores, is much inferior to Kajaransky: the balance of the approved balance sheet (economic) reserves is slightly more than 40 million tons (2000 p.) With average content molybdenum about 0.02% and copper 0.43%. Development - a quarry with a small (about 1 m 3/ t) coefficient of opening, flotation enrichment of ores with the production of copper and molybdenum concentrates. In the 1-8 km north of the Agarak plant is the Lychka copper line. - reserve mineral-raw material base of the plant. It is represented by stockwork, approved balance reserves of sulphide ores 26 million tons, ser. copper content is 0.6%. Favorable mining and geological conditions allow the open development of the deposit from the gray. Coefficient opening - 0,4-0,5 m 3 / t. Lichkva and Terterasar polymetallic genera. are also reserve-explored and located 4 km from each other and 20-24 km from the Agarak copper-molybdenum combine.

Kapanskoy copper deposithas a long history of development. Ore bodies are represented by different morphological types - stockwork and cool-fall veins, from thin (0.6-0.8 m) to powerful (4-5 m). The balance of balance reserves of ore - 5-6 million tons (2000) with an average copper content of 2.6%. The deposit is mainly developed by the underground method (only one stockwork was worked out in an open way). Opening of galleries. Ores and indigenous breeds are characterized by high durability and high stability, mining operations are carried out without attachment. Extraction of ore in stockwork is carried out under the surface-chamber system of development, and living worked out mainly for systems with stores of ore and less often under suburban drifts (with an ore body capacity of 4-5 m). The annual productivity of the Kapansky ore mining and processing enterprise was 1,

On the basis of Shaumyan gold and polymetallic labor. a projected underground mine and a section of a concentrating factory (productivity - 300 thousand tons / year) as part of the Kapan combine. Construction and installation work for 2000 is practically completed. Ores and inbound rocks are characterized by high stability, which will allow the use of development systems with store ore and suburban drifts. The Armenian gold industry was created several decades ago. Its raw material base is Sotsky (Geharkuniki region) and Megradzor (Kotayk region) gold deposits. The balance of the balance stock of the Sotska deposit is estimated at about 20 million tons (2000) with an average content of gold 6 g / t, silver 8-10 g / ton. Characteristic cool-water residential areas with a capacity of several to 40 m. The development of the deposit is carried out in a combined open-underground way. The average open end of the career paths is about 10 m³ / t. The upper horizons are exposed by galleries, the lower ones are vertical shaft barrels. In 2000 underground mining operations were conducted on the upper horizons. The system of development - a downward layer slot with a hardening foundation. The Megradzor deposit is represented by steep veins and vein zones with a capacity of 1-8 m. Approved balance reserves of gold are 20 tons (2000) with an average content of gold and silver of 12 g / ton. The opening of the deposit is carried out by the galleries. The mine was commissioned in 1987, its design capacity is 150 thousand tons / year, the actual productivity is 30-60 thousand tons. The mineralization of ores of the Sotsky and Megradzor deposits is carried out at the Ararat factory located in the same region at a distance of 220 km from Sotsky and 100 km from Megradzor Mining. Ore to the factory is delivered by rail. The ores were enriched by the combined scheme - gravity, flotation (tailings of gravity) and cyanide flotation tails. End products: gravity, flotation concentrates and alloy Δore. The average content of gold in tailings is 1.1 g / t, and the total mass of tails is 10.0 million tons. Based on this man-made deposit of dumps of the Ararat gold-enrichment factory, a joint Armenian-Canadian "Ararat Gold Mining Company" has built and operated a tailings processing plant, from which are obtained by Δore alloy.

Gold
Ready for operation Mgartskoe gold mine, developed SOTQ gold deposit. Underground method develop Tertetasar gold-polymetallic and Akhtala polymetallic deposits.

The issue of gold mining in the country is controlled by the joint venture "Ararat Gold Recovery Company".

Diamonds
The diamond industry in Armenia in 2001 (2000) in value terms was US $ 97 million (US $ 92 million). The Armenian diamond-granular sub-sector is fighting for its existence in the structure of the world diamond industry. In Armenia, Armenia acquired 230 thousand cars in 2001. diamonds in the Russian diamond monopoly Alrosa. Armenia plans to buy 2.05 million carats of rough diamonds in Russia in 2002-2007 (400 thousand carats in 2006 and 450 thousand carats in 2007).

Non-metallic minerals
In V. produce various non-metallic k.k. Traditionally, mining and processing of building materials are carried out: basalt, perlite, limestone, pumice stone, marble and others. Tuffs, travertine are extracted using stone carving machines, and stronger breeds - with the help of explosives. On the basis of Avansky salt deposit, the same salt-mill was created (on the northeastern outskirts of the city of Yerevan). It includes an underground mine, an underground chamber of leaching and a vacuum-evaporating shop for the production of "extra" kitchen salt. Plums of rock salt within the Awang field have a steep fall and alternate with unstable salty clay. Therefore, in order to prevent collapse from the side of the hanging and the lying sides of the reservoir leaves the whole rock salt in a thickness of up to 3 m. Open chambers are created using the development system with the store and the hole punch of salt. The Elarskoye salt field is cultivated with underground storage rooms for the purpose of creating underground gas storage facilities. By 2000, the total capacity of the gas storage facility is 260 million cubic meters (planned to 1.0 billion cubic meters).


Foreign Trade
In 2017 mineral product (without precious metals and stones) exports grew by 46.9% and run at 692 million USD, which comprised 30.1% of all exports.

In terms of value, cut diamond was the country’s leading mineral export followed by copper and ores and slags, of which molybdenum ores and concentrates had the most value. The country reported significant exports of iron and steel, which were either transshipments or scrap as the county had no domestic steel industry.

Outlook
Further development of the country’s mineral production sector is projected as additional funds become available for mineral sector development. Mineral production has been increasing (except for in the diamond-cutting industry) and the country is making a particular effort to attract investment in its mining sector. Molybdenum output is expected to increase as a result of a successful privatization program that involved a $200 million investment that has enabled the Zangezur copper-molybdenum complex to begin reequipping its mining and processing operations in 2005. The goal is to increase the ore-processing capacity at the Kadzharan deposit by 50% to between 12.5 and 13 million metric tons per year (Mt/yr) of ore by 2008. The Armenian Copper Program (ACP) is also in the process of having the large Teghout copper-molybdenum deposit reevaluated and, if it proves feasible for development, the deposit will be second only to the Kadzharan deposit in the size of its copper and molybdenum reserves. International companies are investing in developing gold deposits in Armenia, including Ararat Gold Recovery Company (a 100% subsidiary of Sterlite Ltd. of Canada) and United States-based Global Gold Corp. Production of aluminum foil is also expected to increase with the restarting of the Armenal plant.

In February 2011, a Chinese delegation of the Fortune Oil company said the company plans to invest upwards of $500 million in Armenia's mining industry in two stages.

Corruption
In 2017 Transparency International included the case of Armenia in its research on corruption in mining industry in several countries.

While some mines or their operating licences are directly owned by Armenian ministers of parliament through a series of holding companies, others are sold to foreign entities by the same or other MPs. In 2010, Paramount Gold Mining, owned by RA National Assembly President Hovik Abrahamyan and MP Tigran Arzakantsyan, was awarded a 25-year operating license for the southern portion of the Meghradzor gold mine in the Kotayk Province. According to Hetq, MP Tigran Arzakantsyan, who has not been seen in parliament for quite a while, is now in Europe seeking out buyers for the mine. Hovik Abrahamyan was also involved in the sale of the Hankavan gold mine. He also owns an exploratory license for the copper and molybdenum mine in the Vayots Dzor village of Yelpin. The license went to Argamik Ltd., a company registered in the village of Mkhchyan. The company is owned by Argam Abrahamyan, Hovik’s son.

In January 2011, the Chinese Fortune Oil Company based in Hong Kong purchased 35% of Bounty Resources Armenia, owner and operator of three iron ore mines in Armenia. Word of the sale spread through the Internet, with the Armenian government providing no details. According to the website of the London Stock Exchange, the sale amounted to $24 million. According to Hetq Investigative Journalism, the sale was a private one by Armenian ministers of parliament Vardan Ayvazyan and Tigran Arzakantsyan who through a series of transactions and holding companies have attempted to hide who the real owners of the companies are and to circumvent government scrutiny.

Environmental impact
According to a study by the Republic of Armenia's RA National Academy of Sciences’ Center for Ecological-Noosphere Studies, mining in Armenia has been disastrous for Armenia in terms of public health and the environment. Mining operators have failed to neutralize dangerous contaminants which have been absorbed by the ground. The pollutants then pass from the ground to agricultural produce and then to humans. 57% of Yerevan's population may be living in contaminated conditions due to ground pollution. Furthermore, the country’s rural fields are being irrigated with water flowing from contaminated sources due to mining operations. Also, according to the study, all types of farm produce from the towns of Kapan, Kajaran, Alaverdi, and Akhtala (all of which have significant mining operations) are laden with heavy metals, including mercury arsenic and cadmium.

Source from Wikipedia