Armenia

Statut ITIE Evaluation conformément à la Norme 2016 à venir
Joined EITI in 2017
Dernières données de 2017
Site Internet EITI Armenia
Last updated 12 July 2020

Overview

The metal mining sector is an important contributor to the Armenia’s economy and is one of the fastest-growing sector in the country’s largely agricultural economy. In 2017, the taxes and payments paid by the metal mining companies to the State budget reached approximately USD 18bn or 7.1% of total incomes. The mining and quarrying sector contributed to 3.2% of GDP in 2017. The country’s mineral resources include iron, copper, molybdenum, lead, zinc, gold and silver.

Currenty, there are 10 major mining and metallurgical companies in operation out of over 25 registered, mainly concentrated in two provinces. Currently the biggest mine is operated by the Zangezur Copper-Molybdenum Combine CJSC, located in Kajaran (Syunik province).

Armenia implements the EITI to attract foreign investment in the mining sector, bring accountability and transparency into the sector and enable public access to reliable information. By fostering cooperation between government, businesses, and civil society, the EITI has helped to introduce a new culture of dialogue in Armenia.

Beneficial ownership disclosure

A beneficial ownership roadmap was published in December 2017. In April 2019, Armenia adopted a package of amendments to the relevant legislation that ensured mandatory disclosure of beneficial owners of metal mining companies starting from 2020. In February 2020, the beneficial ownership declaration form has been published, and the first round of the beneficial ownership disclosures has been completed. Currently, Armenia is working on establishing a beneficial ownership register that will help the country to transition to systematic disclosure of beneficial ownership information.

Source: EITI Armenia

Armenia’s political transformation is ongoing, and the priority of our Government is the economic development and reforms aimed at improving the wellbeing of our people. EITI Armenia, which has transparency, anti-corruption and participatory governance at its core, will assist our country to develop a responsible mining sector for the benefit of all citizens.
Tigran Avinyan, Deputy Prime Minister of Armenia

Production

Copper is the main mineral for Armenia’s mining sector which contributed to 26.6% of total exports from Armenia in 2017. The country also produces significant volumes of molybdenum, ferromolybdenum, zinc as well as gold and silver alloy.

CommodityVolume of production (2017)Value of production (2017)Exchange rate (2017)
Copper ore and concentrate459,273 wmt134,788m AMD1 USD = 480.629 AMD
Molybdenum concentrate2,303 wmt4,378m AMD
Ferromolybdenum6,519 ton29,585m AMD
Zinc ore and concentrate10,869 ton4,104m AMD
Gold and silver alloy60,010 gram + 139,839 ounce153m AMD + 55,152m AMD

Revenue collection

Metal mining companies pay royalty, value added tax, income tax, profit tax, custom duties and fees, rent payments and a number of other taxes and payments to the State and local budgets.

In 2017 the taxes and payments paid by the metal mining companies to the State budget were equal to AMD 87.1bn (USD 0.18bn) or 7.1% of total incomes.

Initializing chart.

Main revenue recipients by government entity

Reconciled revenues by company (top 5)

Revenue allocation

According to Armenia’s 2016-2017 EITI Report, the amount of taxes and payments paid by metal mining companies to the community budgets in 2017 amounted to AMD 1.3 bn (USD 2.73m) or appoximately 1% of total community budgets.

Taxes and payments paid to community budgets by metal mining companies are primarily derived from property leases, which form approximately 66% of total taxes paid to the community budgets in 2017. 

Social and economic contribution

In 2017, the mining and quarrying sector contributed 3.2% of the GDP and was ranked 12th among 20 sectors in terms of total GDP share.

Between 2016 and 2017, the share of contributions of mining companies for the socio-economic development of communities increased significantly from 7% to 26.7%. In 2017, these revenues amounted to AMD 352m (USD 0.74m).

The industry sector has traditionally been the third sector of the economy of Armenia by its contribution to the total employment following the service and agriculture sectors. In 2017 there were 132.9 thousand people employed in the sector accounting for the 13.1% of the total employment. According to the Statistical Committee, the share of mining and quarrying sector in the total industry employment was 7.2 and 6.9% for 2016 and 2017 respectively, with the total number of 8.8 and 9.2 thousand employees.

More detailed information about the obligations of the metal mining companies for the socio-economic development of the affected communities can be found on the national EITI website.

Innovations

The establishment of an e-reporting platform, which also serves as a data portal, was an important stepping stone towards facilitating collaboration between stakeholders and moving to systematic dislosure of information about the metal mining sector. The portal not only lessens the reporting burden for companies by making it easier to report but also makes data more accessible to citizens in open data formats. 

Implementation

Armenia joined the EITI in March 2017 with the aim of leveraging natural resource transparency to promote economic growth and poverty reduction. In 2018, the new government became actively engaged with EITI implementation and committed to undertake systemic institutional and legal reforms, emphasising as an important breakthrough the preparation of the country’s first EITI Report. The government has also expressed its support to establishment of a public beneficial ownership register.

In 2018, Armenia launched an online reporting system for industry and government agencies to electronically collect and disclose EITI data. Armenia’s first EITI Report was published in January 2019 and covers 2016 and 2017 fiscal years.

Armenia has also identifies responsible mining as a national priority for the mining sector and created a working group focusing on this topic. In addition, comprehensive information about environmental payments that are paid by metal mining companies and distributed to the affected communities can be found on the national EITI website.

Currently, the EITI process in Armenia is lead by Deputy Prime Minister Tigran Avinyan. An overview of the country's priorities can be found here.

Source: EITI Armenia

 

Timeline

Validation

Armenia's first Validation against the Standard commenced on 9 September 2019.