(Read the full article on arka.am)
The Armenian government approved the draft law “On Amendments to the RA Law“ On State Duty ”, the adoption of which is conditioned by the need to regulate foreign trade in goods of strategic importance for the republic (copper and molybdenum concentrate, ferromolybdenum). This was announced on Monday during an extraordinary meeting of the government chaired by acting Prime Minister of Armenia Nikol Pashinyan, the press service of the acting premiere, ARKA reported.
According to the substantiation, in recent years there has been an increase in exchange prices for non-ferrous metals in the world market, which creates favourable conditions for the growth of incomes of the mining sector in Armenia and its further development. International copper prices have been steadily increasing in the global market since April 2020 (the price of copper on the international stock exchange has exceeded $7,500 since December 2020 and is currently $ 9,225). Since April 2018, the price of molybdenum has been stable at $24,000. According to studies, most of the copper mines in Armenia are profitable at a copper price of $5,300, and even after paying a state fee at $ 7,500, the sector remains quite profitable. According to the bill, high profits received from the exploitation of the country’s subsoil will focus on developing the manufacturing industry, strategic assets in the mining sector and deepening production value chains. Specifically, the plan is to deepen the copper value chain by first establishing high purity copper cathode production and then helping to rapidly develop an ecosystem of related products.
According to the rationale, the project is a temporary solution pending a complete and in-depth revision of the sector-related policy with the involvement of all departments in the sector. In the long term, it is planned to revise the tax policy of the industry in order to ensure effective taxation of excess profits from the use of the country’s subsoil. The proposed license rates are expected to apply only in high price ranges for these metals, and then, depending on changes in demand for these metals in the global market.