Edik Baghdasaryan
Who Is Going to Export Gold from the Lichkvaz and Terterasar Mines?

[December 29, 2008]

As of September of this year, Tamaya Resources put a stop to the project to extract gold from the Lichkvaz and Terterasar mines. According to a statement released by the company the primary reason for the project’s termination were financial problems.  However, as one of our sources states the problems faced by Tamaya weren’t only financial. Our source, a former company employee who wishes to remain anonymous, notes that the company found itself in this position due to the “efforts” of local management. The insider claims that the local management team incurred more hefty expenses than had been planned for – the purchase of expensive jeeps, showing big salaries on the books but in reality paying less as well as costs for work junkets and other items.

Armen Davtyan
Deno Gold’s Robert Falletta – “What awaits us come the spring isn’t yet clear”

[December 29, 2008]

While giving an overview of the past year, Robert Falletta, General Manager of Deno Gold Mining Company (former Kapan Mining Combine) noted that the direction adopted by the company at the start of the year was designed to insure that the company operated at a profit and was in a position for a number of modifications to be realized. “We had been expanding our productions levels and our employees would know better the successes we had. However, the economic crisis changes all our plans and impacted on all the positive approaches we had adopted. There is an economic collapse taking place throughout the world at present.

Edik Baghdasaryan
It Turns Out that Armenia is also Importing Molybdenum

[December 15, 2008]

During the years 2205, 2006 and 2007, Armenia imported 1,955 tons of molybdenum ore from a variety of countries. The importation of the ore has officially been registered by the Customs Service as, « Temporary importation for reprocessing ». The value of the imported ore according to Customs is 19.7 billion drams (approximately $66 million). Industry experts state that one ton of molybdenum is derived from every two tons of ore. We should note that all the experts we talked to were amazed that Armenia has been importing molybdenum ore, stating that such a thing is an impossibility.

Lena Nazaryan
Lycos Armenia to Shut Down Operations in Armenia

[December 15, 2008]

Lycos Armenia, an information technology and internet portal company operating in Armenia since 2000 and the main subsidiary of Lycos Europe, has stated that it will be shutting down operations.  The shareholders of Lycos Europe, founded in the Netherlands in 1997, have voted to either sell the company or liquidate the firm. Proof of this move is to be found in the financial reports of the company posted on its web site.

Armen Davtyan
Robert Falletta – “I can’t say what will happen three months hence, but if the situation doesn’t change there will be layoffs.”

[December 08, 2008]

During the first weeks of November, during a meeting with workers, the General Manager of Deno Gold Mining Company, CJSC (DGMC) Robert Falletta, declared that the drop in world metal prices would have unavoidable consequences on the company’s operations.

Mr. Falletta noted that the prices for the company’s product (gold, copper, zinc) had drastically and quickly dropped during the last few months. Despite the millions of dollars of investments made by DGMC’s parent company Dundee Precious Metals Inc. in 2006, the company had not realized a profit from the first day it had been acquired.

Implications of the World’s Financial Crisis for Armenia’s Economy

[December 08, 2008]

Executive Summary

It has become clear by now that the ongoing financial crisis will have a deep and prolonged impact on a wide range of economies. This is also likely to be true for a peripheral economy like Armenia’s, regardless of how isolated its relevant sectors are from the rest of the world. While in-depth research on the causes and consequences of the crisis is still in the pipeline and will become available as more facts are uncovered, economists around the world agree that there is ample evidence of a serious crisis in the making. A number of large economies have already come under strain and applied for emergency funding from the International Monetary Fund.

Edik Baghdasaryan
The Armenian Mining Sector: Victim of the Economic Crisis

[November 24, 2008]

“We have reached an agreement with the owners. In the coming three months there will be no layoffs and wage levels will be maintained as much as possible. We will again assess the situation in three months time when we will formulate a new decision.” stated Energy and Natural Resources Minister Armen Movsisyan at a November 13th government session.

Three Armenian government Ministers were dispatched to Syunik Marz by a decree issued by the Prime Minister on November 10th to study and discuss issues related to worker job and wage cuts and to avert worker protests and strikes. The three ministers would be presenting their findings to the Prime Minister and other government members at the November 13th session.

Ararat Davtyan
Tamaya Resources Ltd. is Pulling Out of Armenia

[November 24, 2008]

In September of this year the Australian firm Tamaya Resources Ltd. announced a halt to its gold mining plans in Meghri.

In the company’s semi-annual report this move was attributed to higher than expected amortization costs and insufficient gold reserves. In reality, however, Tamaya Resources hasn’t merely temporarily halted its operations in Meghri but has ceased functioning all together and is looking to get out of Armenia as soon as possible.

Edik Baghdasaryan
New Hrazdan Mine Fulfills the Dream of Former Environment Minister Vardan Ayvazyan

[November 17, 2008]

Several months ago during a T.V. interview, Vardan Ayvazyan, Armenia’s former Minister of Nature Protection and currently President of the National Assembly’s Permanent Committee for Economic Affairs, confessed that he dreams about iron production in Armenia. He started to take steps to realize this dream back when he Minister of Nature Protection by granting himself licenses to explore potential mining sites.

Last year the Ministry of Trade and Economic Development granted a special mining operator’s license to Nagin, Ltd., a company that is owned by the Ayvazyan family.

Larisa Paremuzyan
“If there is no change in global market copper prices, jobs will be cut”

[November 17, 2008]

- What impact has the international financial crisis had on the Vallex family of companies, of which the Armenian Copper Programme (ACP) is a part?

- In my estimation, the international financial crisis is impacting mining resources, including metallic mineral ore, with a substantial concomitant drop in global metal prices. Naturally, this factor cannot but impact on any mining concern in operation throughout the world. Mining concerns in Armenia have also not escaped being impacted, in particular our firm. As to how substantial that impact will be, or how long it will last, depends on how long the crisis itself will continue; to what extent it will deepen and on what level will the current fluctuations in global metal prices eventually stabilize.

Edik Baghdasaryan
A Tale of Bananas in a Banana Armenia

[October 13, 2008]

On September 25th, at a meeting with journalists and representatives of various NGO’s, the Prosecutor General of Armenia discussed a series of questions related to crimes linked to corruption. In my statement I commented that in its war against corruption the Prosecutor General’s Office had only pursued cases against the “small fish” while the case files of larger violators were being closed.

As an example I referred to one case study resulting from the investigative reportage carried out by “Hetq” according to which the “Ketrin” (Catherine) LLC. was found to be exporting bananas from Armenia to the Bahamas and Georgia. (See: Armenia is Exporting Bananas).

Armen Davtyan
Reverberations of the Economic Crisis in Armenia

[November 03, 2008]

However much the country’s statesmen claim that the economic crisis will not leave its mark on the economy of Armenia, it is nevertheless already being felt in the region of Syunik, Armenia’s gateway in the south.

According to information at our disposal, the directorate of the Deno Gold Mining Company (DGMC), the former Kapan Mining Enrichment Plant, has warned 500 of its employees that they will be let go come December 15th.

Edik Baghdasaryan
The “Compulsory Enforcement Service” Refutes the Irrefutable

[November 03, 2008]

On October 29th, the Compulsory Enforcement Service of Court Decrees (CES) released the following statement: 

“The CES of Armenia declares that Mihran Poghosyan, who heads the CES, presently has no connection whatsoever with the firm Ketrin LLC.

Liana Sayadyan
Stepanavan Begins to Breath and Live

[September 15, 2008]

In Armenia, they call people hailing from the region of Lori as the "simple-minded Loretsi". The hidden meaning of this nickname is that residents of Lori are pure and untainted, sincere and unspiteful folk and a people possessing a rich spiritual inner world; similar to their unblemished natural surroundings. Of the many treasures dotting the countryside, of particular note is the city of Stepanavan, siitting on the heights above of Dzoraget River and nestled on the slopes of deeply  forested mountains. What makes Stepanavan one of the country's most gorgeous of summer resort areas is its sunny days, mild humid climate and abundance of green spaces.

Liana Sayadyan , Edik Baghdasaryan
Armenian Oligarches Active in France

[October 06, 2008]

During the past few years Armenian oligarches have transferred a significant portion of their capital from Armenia. Several of them have been captivated by the charms of France and many have purchased apartments and homes in Paris. Gagik Tzaroukyan has also bought real estate in the French capital. The largest transactions have been conducted by Hrayr Hakobyan and Parliament Deputy Tigran Arzakantsyan.

In October 2007 Mr. Hakobyan purchased the Châtenay chateau and its grape vineyards for 4.8 million Euros. The 40 hectare expanse once belonged to the well-know Gregoire family and includes the castle, vineyards and a vodka distillery.

Lena Nazaryan
Reforms Continue Under the Motto, “Facing the Taxpayer”

[September 01, 2008]

During the past two weeks the Deputy Chiefs of the State Tax Service (STS) of Armenia have given a series of interviews highlighting the reforms and developments being undertaken in the tax field.

“Facing the taxpayer”, the famous words uttered by Prime Minister Tigran Sargsyan has become the motto of these interviews.

Lena Nazaryan
Mortgage Loans Beyond the Reach of the Middle Class

[July 28, 2008]

Commercial banks in Armenia and mortgage companies continue to review their mortgage loan programs and are proposing more favorable and longer credit terms for loans to purchase and renovate apartments.

When Armenian banks began offering mortgage loans in 2002 terms for apartment purchases included a 50% up-front deposit, annual interest rates of 18-24% and loan durations of five years. Today, the most commonly available terms are 10-15 year loans, annual interest rates of 12-16% and an up-front deposit of 30-35% of the apartment’s value.

Edik Baghdasaryan
Armenia is Exporting Bananas

[July 21, 2008]

In 2006, Armenia exported 3002 tons of bananas to the Bahamas and 91 tons to Georgia. In 2005, 594 tons of bananas were exported to the Bahamas. The Republic of Armenia’s State Council on Statistics (SCS) provided these figures.

Lena Nazaryan
Agricultural Credits are Becoming More Accessible

[June 30, 2008]

Armen Sarjanyan, Director of the “Healthy Mushroom” Company says that, “Around 8-10 years ago banks used to laugh at us when we went to them for agricultural loans.” The main reason that loans were refused at the time was that agriculture wasn’t seen as a economically solvent sector.

Today, the Director of the Hrazdan firm that produces mushrooms states that it’s because of loans received in the past two years that the company has grown. Presently, the issuance of credit has been partially resolved as international, state and private institutions are involved in the process.

Emma Sargsyan
The Able-Bodied Unemployed - Manufacturers Bring In Their Own Experts

[May 26, 2008]

For many years the Ararat Gold Recovery Company (AGRC) created jobs but they were never   tended for the local residents or for people from neighboring districts. T he foreign owners of the plant would bring in workers from their own country.

Emma Sargsyan
Behind Gold’s Luster Lie Lands Torn Asunder and Urgent Questions

[May 19, 2008]

Since early times the passion for gold has contained elements bordering on madness. For thousands of years there has been something in its intoxicating luster that has led people to extreme degrees of desire - to possess gold, to hoard it, to fight and kill for it and to control it.

Valerie Gortzounian - “I am sad in Armenia”

[May 19, 2008]

Today I am sad. Thirteen years ago I decided to leave France, my third homeland, and relocate to Armenia, with the intention to invest in the fatherland, which I did by creating the Le Cafe de Paris. I invested my time, energy, health and resources, so that our little Parisian cafe could illuminate Abovyan Street.

Emma Sargsyan
The Gold Rush Leaves Health Problems and Unemployment in its Wake

[May 12, 2008]

Parallel to the unprecedented growth in the price of gold on the world market there are growing environmental and health problems in the city of Ararat. No matter how much health and environmental specialists claim that it is global factors influencing the local surroundings, that are impossible to counter, the residents of Ararat continue to be concerned with the dangers and the scope of the dangers associated with area industrial concerns.

Lena Nazaryan
Armenia’s First Stamps: Mount Ararat and the Tri-color

[March 21, 2008]

Independent Armenia’s first stamp was printed in 1992. (Photo 8) In 1991 a competition was announced for the stamp design in which 100 individuals submitted some 400 entries. The theme of the first stamp had already been selected - Mount Ararat and the Tri-color flag. Graphic designer Harutyun Samuelyan was the author of that first stamp.

Lena Nazaryan
On the First Stamps Only the Letter “H” was Armenian

[March 10, 2008]

The first Armenian stamps were Czarist

When the first Armenian Republic was proclaimed in 1918 the country didn’t have its own stamps. There were Russian stamps in the Post Office storage facilities however and they were placed into circulation. In order to give these stamps more of an Armenian feel, they were ink stamped with the Armenian letter “H”.  By 1921 these Russian stamps had been exhausted and it was necessary to print new ones. It is said that a ‘Soviet theme’ began to appear in Armenian philatelic history.

Edik Baghdasaryan
Who Exploited the Mghart Gold Mine?

[February 11, 2008]

GM Magharo is just one of the some 30 companies owned by Gagik Tsarukyan. Mr. Tsarukyan is the sole shareholder of the firm. In March of 2006 the Ministry of Trade and Economic Development of the ROA granted a special license to the company regarding mineral extraction rights at the Mghart gold mine located in the Lori Marze.

Lena Nazaryan
It is Easier to Produce Than to Sell

[December 17, 2007]

The knitwear factory owned by the company Tosp did not close even during the years of the energy crisis - when there was no electricity during the day.  In the years between 1992 and 1996 the seamstresses would start work at night and end in the morning. 

Njdeh Melkonian
Some Clarifications

[October 29, 2007]

I appreciate the opportunity to clarify some points raised in the recent discussion in this forum and also respond to the question posed by Mr. Gabrielyan in his follow-up remarks.

Lena Nazaryan
Armenian Tea Isn’t Appreciated in Armenia

[February 04, 2008]

When the thyme leaves blossom residents of nearby villages begin to harvest the herb from the lofty meadows around Sisian, Kapan and Goris. The fragrance of the thyme is much ore pronounced in these areas and the oil content of the herb is rich.

The company Bio Universal, LLC, purchases the thyme from the residents in its dried state and produces tea, oil, syrup, tinctures and seasonings from the herb.

Lena Nazaryan
Mechanical Engineering Isn’t a Developing Industry In Armenia

[January 28, 2008]

After Armenia gained its independence scores of machine-building pants were closed-down and their parts and lathes were sold as scrap to Iran.