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IT IS NOT RULED OUT THAT OPERATION OF ALAVERDI COPPER FOUNDRY WILL BE STOPPED IN JANUARY 2009
Noyan Tapan
Dec 24 2007
YEREVAN, DECEMBER 24, NOYAN TAPAN. It is not ruled out that
operation of the Alaverdi copper foundry will be stopped next year,
NT correspondent was informed by the director of Armenian Copper
Program (ACP) CJSC Gagik Arzumanian. To recap, the annual amount
of the foundry's atmospheric emissions of sulfur dioxide makes 24
thousand tons, which exceeds 4-8fold the permissible amount. In 2005,
ACP company presented a 5-year program of environmental protection
measures, under which the enterprise's emissions shall be reduced by
10% from January 2008 and by 70% from January 2009. If the company
fails to fulfil the program-envisaged obligations on time, it will
have to pay a sum several times as much as the envoronmental payment.
G. Arzumanian told NT correspondent that each quarter the company
makes an environmental payment of about 33 million drams (about 110
thousand USD).
"If we fail to ensure the programmed reduction in emissions, the
environmental payments will increase about 2,5fold," he said. According
to him, it would considerably reduce the profitability of the copper
foundry.
He said that they have examined the expediency of constructing new
copper foundries with modern technologies. In particular, the proposals
of biggest companies supplying copper-smelting technologies have been
studied. However, their use is not economically sound in Armenia.
In the words of G. Arzumanian, the annual capacities of new
foundries constructed in various countries make at least 200-250
thousand tons. At the same time, he pointed out that Armenia will
never be competitive with a foundry with a capacity of 10 thousand
tons. "In case of a capacity of 100 thousand tons, perhaps it will
be competitive," he said.
"Taking into account other circumstances that hinder the normal
operation of the copper foundry, particularly, serious problems related
to the refund of VAT excess payments, the continuous appreciation
of the Armenian dram, an expected rise in the gas tariff, etc, it
is not ruled out that the foundry will stop operating next year,"
G. Arzumanian said.
Noyan Tapan
Dec 24 2007
YEREVAN, DECEMBER 24, NOYAN TAPAN. It is not ruled out that
operation of the Alaverdi copper foundry will be stopped next year,
NT correspondent was informed by the director of Armenian Copper
Program (ACP) CJSC Gagik Arzumanian. To recap, the annual amount
of the foundry's atmospheric emissions of sulfur dioxide makes 24
thousand tons, which exceeds 4-8fold the permissible amount. In 2005,
ACP company presented a 5-year program of environmental protection
measures, under which the enterprise's emissions shall be reduced by
10% from January 2008 and by 70% from January 2009. If the company
fails to fulfil the program-envisaged obligations on time, it will
have to pay a sum several times as much as the envoronmental payment.
G. Arzumanian told NT correspondent that each quarter the company
makes an environmental payment of about 33 million drams (about 110
thousand USD).
"If we fail to ensure the programmed reduction in emissions, the
environmental payments will increase about 2,5fold," he said. According
to him, it would considerably reduce the profitability of the copper
foundry.
He said that they have examined the expediency of constructing new
copper foundries with modern technologies. In particular, the proposals
of biggest companies supplying copper-smelting technologies have been
studied. However, their use is not economically sound in Armenia.
In the words of G. Arzumanian, the annual capacities of new
foundries constructed in various countries make at least 200-250
thousand tons. At the same time, he pointed out that Armenia will
never be competitive with a foundry with a capacity of 10 thousand
tons. "In case of a capacity of 100 thousand tons, perhaps it will
be competitive," he said.
"Taking into account other circumstances that hinder the normal
operation of the copper foundry, particularly, serious problems related
to the refund of VAT excess payments, the continuous appreciation
of the Armenian dram, an expected rise in the gas tariff, etc, it
is not ruled out that the foundry will stop operating next year,"
G. Arzumanian said.