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, which is used in some high-quality forms of steel, and other alloys. 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.Richard M. Levine and Glenn J. Wallace. "The Mineral Industries of the Commonwealth of Independent States". 2005 Minerals Yearbook. U.S. Geological Survey (December 2007). This article incorporates text from this U.S. government source, which is in the public domain.
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."Mining Industry in Armenia 2011", Armenian Development Agency Research and Information Department, 2011. 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 polymetallic 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.
+ Metallic mineral deposits Name Metals mined Province Nearest town GPS coordinates Ore processing Tailing dam(s) Company exploiting mine Mghart Mine Gold Lori Mghart village Exploratory work and ore extraction reported On-site enrichment plant 3 tailing dams on site MultiGroup (owned by Gagik Tsarukyan, via Mghart Gold Enrichment Plant) Shamlugh Mine Copper Lori Shamlugh Metal Prince Ltd. Armanis Gold, Copper, Zinc, Lead Lori Armanis village (approximate) Global Metals (via Sagamar CJSC), formerly Metal Prince Ltd. Teghut Mine Copper, Molybdenum Lori Teghut village On-site (proposed) On-site (proposed) Disputed between insolvent Vallex Group (via Teghout CJSC) and VTB Bank. Operations suspended as of Feb 2019. Akhtala Copper Lori Akhtala On-site adjacent to Akhtala monastery Metal Prince Ltd. Akhtala Barite Lori Akhtala Alaverdi Copper Lori Alaverdi Vallex Group (via Armenian Copper Programme CJSC) Tandzut Gold oxide Lori Vallex Group (via Armenian Copper Programme CJSC) Tukhmanuk Gold, Silver Aragatsotn Melikgyugh (according to company map) Global Gold Corporation Meghradzor Gold Kotayk GeoProMining Abovyan Iron (Magnetite) Kotayk Bounty Resources Armenia (35% owned by the Chinese company Fortune Oil) Hrazdan Iron Kotayk Bounty Resources Armenia (35% owned by the Chinese company Fortune Oil) Hankavan Copper, Molybdenum Kotayk Hankavan Exploratory work underway GeoProMining (via Golden Ore, LLC) (license dispute with Global Gold Corporation) Tezhasar Nepheline syenite Kotayk Meghradzor Alumina Corporation LLC Meghradzor (Lusajur section) Gold Kotayk Paramount Gold Mining Ltd. (owned by RA National Assembly President Hovik Abrahamyan and MO Tigran Arzakantsyan)Parliament Prez and MP Get Lucrative Mining License, May 10, 2011, Edik Baghdasaryan, Hetq. Getik Gold, Silver, Uranium Gegharkunik Getik, Gegharkunik Exploratory work in progress Global Gold Corporation Sotk Mine Gold Gegharkunik Sotk Off-site at Ararat Gold Recovery Company in Ararat town GeoProMining (via GPM Gold) Azatek Gold, polymetallic Vayots Dzor Vayk Azatek Gold Ltd. Ownership: 74% owned by Anglo-African Minerals plc 26% by Alrosa) Gladzor Copper, Lead, Zinc Vayots Dzor Exploratory work underway GeoProMining Sofi Bina Gold Vayots Dzor Amulsar Mine Gold Vayots Dzor Jermuk On-site (Proposed) On-site (Proposed) Lydian Armenia (100% owned by Lydian International Limited which is registered on the island of Jersey in the Channel Islands) Kajaran Mine Copper, Molybdenum Syunik Qajaran On-site at Zangezur Copper Molybdenum Combine CJSCZCMC CSJS ownership: 60% CRONIMET Mining AG 15% The Plant of Pure Iron” OJSC (owned by CRONIMET) 12.5% by Armenian Molybdenum Production Ltd., 12.5% by Zangezour Mining Ltd)ZANGEZUR COPPER MOLYBDENUM COMBINE , Cronimet mining Ag website. Shahumyan Gold, Copper, Zinc, Lead, Silver Syunik Shahumyan village Dundee Precious Metals Inc. (via Deno Gold Mining Company) Agarak Mine Copper, Molybdenum Syunik Agarak town near Agarak at Multiple:
GeoProMining (since 2007, via Agarak Copper-Molybdenum Mine Complex) Kapan Copper, Molybdenum Syunik “Kapan Mining and Processing Enterprise” cjsc (owned by Chaarat Gold Holdings Ltd.) Lichqvaz-Tey Gold, Copper, Silver Syunik Meghri Global Metals (since December 2010, via LV Gold Mining) (formerly Tamaya Resources (formerly Iberian Resources)) Dastakert Copper, Molybdenum Syunik Dastakert village Global Metals (via Molibdeny Ashkharh LLC) Lichq Copper Syunik Terterasar Gold Syunik Meghri Tamaya Resources (since 2005, via Iberian Resources via Sipan-1) Hankasar Copper, Molybdenum Syunik Geghi village On-site On-site Ler-Ex Ltd. (Owned by Governor of the Syunik Region Suren Khachatryan) Aygedzor Gold, Copper, Molybdenum Syunik Meghri Tamaya Resources (since 2005, via Iberian Resources via Sipan-1) Bardzradir (Mazra) Gold Syunik Tsav, Armenia Exploration work underway (as of June 2012) Opulent Trading Solutions Svarants Iron Syunik Svarants village Bounty Resources Armenia (35% owned by the Chinese company Fortune Oil) Marjan Gold, Silver Syunik Arevis Exploration work underway Global Gold Corporation Drmbon Mine Gold, Copper Martakert Province, Nagorno-Karabakh Republic Drmbon village On-site at Multiple:
Vallex Group (via Base Metals CJSC) Kashen Copper Martakert Province, Nagorno-Karabakh Republic near the villages of Vardadzor, Tchankatagh, and Tzaghkashen) On-site (proposed) Vallex Group (via Base Metals CJSC)
Production
In 2017, mining industry output grew by 14.2% to 172 billion AMD at current prices and contribute to 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 produces aluminum foil based on raw materials imported from Russia and has a diamond cutting industry using imported raw materials. The country has almost no domestic fuel production and relies on the Armenian Nuclear Power Plant for electric power, as well as hydroelectric plants. Armenia imports 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.
Foreign Trade In 2017, mineral product (without precious metals and stones) exports grew by 46.9% and run at US$692 million, which comprised 30.1% of all exports.
In terms of value, cut diamonds are 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 licenses 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 the 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."Who’s Minding Armenia’s Natural Resources?" , Hetq Online, February 7, 2011. 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