Teghut Mine

Teghut Mine
Open-pit mining at Teghut (summer 2014)
Location
Teghut Mine
Location in Armenia
Location Teghut
Province Lori
Country Armenia
Coordinates 41°05′17″N 44°50′47″E / 41.088087°N 44.846274°E / 41.088087; 44.846274Coordinates: 41°05′17″N 44°50′47″E / 41.088087°N 44.846274°E / 41.088087; 44.846274
Production
Products Copper, molybdenum
Production 1.6 million tons of copper
100,000 tons of molybdenum
Type Open pit
History
Opened 2014 (2014)
Active 2014 - Feb 2018
Closed 2018 (suspended)
Owner
Company Vallex Group (via Armenian Copper Programme)
Website www.teghout.am
Year of acquisition 2001

Teghut Mine is a major copper and molybdenum open-pit mine in Armenia's northern province of Lori in the village of Teghut with deposits valued at $15.5 billion USD (in 2010). In December 2014, Vallex Group launched production operations at the mine, which is a $380 million USD project.[1] In February 2018 Vallex Group published a statement announcing suspension of all operations and laying off nearly all staff.[2] [3]

The mine is expected become comparable in size to the Kajaran Mine in southern Armenia.

Available deposits and value

The Teghut forest lies atop ore deposits containing an estimated 1.6 million tons of copper and about 100,000 tons of molybdenum.[1] In 2010, with the price of copper at $7,500 USD per ton and molybdenum at $35,000 USD per ton, this amounts to about $12 billion USD in copper and $3.5 billion USD in molybdenum. Therefore, the total value of the mine's deposits was about $15.5 billion in 2010.

Mine financing and ownership

Vallex, which is run and at least partly owned by Russian-Armenian businessman Valeri Mejlumyan, claims to have already invested almost $340 million in Teghut.[1] It has borrowed the bulk of that money from VTB, a leading Russian bank.[1]

In 2013, the company also attracted $62 million in funding from a Danish pension fund which was due to be partly or fully channeled into purchases of metallurgical equipment.[1] in 2017 Danish state agency has decided to withdraw already issued export credit guarantees to mine operators accusing its private owner of failing to comply with environmental standards.[4]

Notable incidents, statements and events

2018 February - Vallex Group declared suspension of all operations

Mine operator issued a statement declaring it will suspend all operations and lay off all workers except for few responsible for preservation of existing infrastructure.[5][2] [3]

2018 January - Leak into river

By the end of January 2018 reports were published that tailing dam of got cracks and unprocessed mine waste leaks into Shongh river which became visibly polluted.[6][7][8] However minister for nature protection maintains there measurements could not determine any river pollution.[9]

2017 December - Discontent of community residents

Community residents formally demanded from Ministry of Nature Protection to cancel mine expansion project.[10]

2017 October - Funding withdrawal due to environmental issues

Danish state agency EKF has decided to withdraw already issued export credit guarantees to mine operators accusing its private owner of failing to comply with environmental standards.[11][4]

2017 August - Mine operator acknowledges environmental pollution

At the public hearings Deputy Director General Sahak Karapetyan didn't reject the fact of environmental pollution and promised to find a solution.[12]

2014 - Statements by mine operator

Vallex claims to have created about 1,300 new jobs and has pledged to build new schools and upgrade infrastructure in nearby villages.[1]

The company has said that it plans to manufacture $182 million worth of non-ferrous ore concentrates there already in 2015.[1]

Assessments before opening

Open-pit mining at Teghut will lead to the destruction of 357 hectares of rich forest, including 128,000 trees.[1] Environmentalists claim that ore crushing and enrichment will also pollute a local river and underground waters.[1]



Panoramas from September 2013

Teghut Valley and Mine. Visible are the location of the open pit mine and the ore processing facility under construction.
Western area: Teghut village and mine.
Eastern area: Teghut mine and forest
Panorama from main road a few kilometers up from the main entrance. The ore processing facility can be seen under construction on top of the hill, behind which is the tailing dump.
Panorama from main road a few kilometers up from the main entrance. The tailing dump is located behind the hill in the foreground.
Ore processing facility under construction

References

  1. 1 2 3 4 5 6 7 8 9 Danielyan, Emil (2014-12-22). "New Armenian Mining Giant Inaugurated". Azatutyun Radiokayan (RFE/RL). Yerevan. Retrieved 2015-08-30.
  2. 1 2 "ANNOUNCEMENT (02.02.18)". vallexgroup.am. Retrieved 2018-02-22.
  3. 1 2 "ANNOUNCEMENT (13.02.18)". vallexgroup.am. Retrieved 2018-02-22.
  4. 1 2 "Denmark Withdraws Funding For Armenian Mining Project". «Ազատ Եվրոպա/Ազատություն» ռադիոկայան (in Armenian). Retrieved 2018-02-22.
  5. ↑ Ecolur. "'Vallex' Stopped Teghout Mining for Non-Fixed Term - HOT LINE - Ecolur". www.ecolur.org. Retrieved 2018-02-22.
  6. ↑ "What is going on at Teghut Mine (Video) | Հայկական բնապահպանական ճակատ". www.armecofront.net. Retrieved 2018-02-22.
  7. ↑ Hairenik (2018-01-26). "Teghut Tailings Travesty; Glendale Gas Grift; More Mining Mania". The Armenian Weekly. Retrieved 2018-02-22.
  8. ↑ "What is going on at Teghut Mine (Video) – AMULSAR". amulsar.com. Retrieved 2018-02-22.
  9. ↑ "Ministry tests samples from Debed, Shnogh rivers, no pollution recorded". armenpress.am. Retrieved 2018-02-22.
  10. ↑ Ecolur. "Shnogh Community Residents Demanding from RA Nature Protection Ministry To Withdraw Teghout Copper and Molybdenum Mining Expansion Project Submitted by "Teghout" CJSC - HOT LINE - Ecolur". www.ecolur.org. Retrieved 2018-02-22.
  11. ↑ "EKF withdraws financing from Armenian mining project - EKF". www.ekf.dk. Retrieved 2018-02-22.
  12. ↑ Ecolur. "Shnogh Community Residents Demanding from RA Nature Protection Ministry To Withdraw Teghout Copper and Molybdenum Mining Expansion Project Submitted by "Teghout" CJSC - HOT LINE - Ecolur". www.ecolur.org. Retrieved 2018-02-22.

See also

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