YEREVAN, December 14 (Noyan Tapan). On December 14, the agreement on privatization of the Zangezur copper-molybdenum complex CJSC was signed, by which the government will receive 132 million dollars for this enterptise. According to the agreement, the shares of the enterprise will pass to four shareholders - the Chronimet company (Germany), the Pure Iron Plant OJSC, the Armenian Molybdenum Production CJSC and the Zangezur Mining LTD in the ratio of 60%, 15%, 12.5% and 12.5% respectively. In addition, it is expected that the shareholders will invest 150-200 million dollars in the coming years. "As a result of the privatization Chronimet together with the local investment companies will increase the complex's production volumes 1.5-2 times. Starting from 2005, molybdenum concentrate will not be exported from Armenia and will be fully processed on the spot," the RA Trade and Economic Development Minister Karen Chshmaritian said. It was also noted that the local investors will receive credits to pay their share from two German banks. The minister stated Chronimet will pay 45 million dollars by the end of 2004, including 25 million dollars that has been already paid for the right of the exclusive negotiations. The remaining 87 million dollars will be paid in 2005 after the feasibility study and the investment program specification. The whole transaction is financed by the consortium formed by the Deutsche Bank (Germany). According to Chairman of Chronimet Guenther Pirawski, this transaction is the most optimum version of the cooperation and they intend to export only the final production. In addition, the Zangezur mine development long-term program is stipulated. It was also mentioned that this year alone the company exported 1 million tons of metallic raw materials to the biggest steel foundries of the world. Mr Pirawski stated their company has been functioning in Armenia for 7 years and they are satisfied with the investment climate in the country. "I always call on my partners in Germany to cooperate with Armenia," he said. The process of privatizing the Zangezur copper-molybdenum complex started in 2001, while the tender was officially announced in March, 2004. This transaction is the second biggest privatization implemented in Armenia after ArmenTel's privatization in 1997.

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