Prehistory of the project

Preparatory works for exploitation of Teghout copper-molybdenum deposit

Before starting any vital activity towards construction of Teghout mining and processing plant and operation of copper-molybdenum deposit, Vallex Group fully adopted all legal procedures established by RA legislation.

In February 2001 through the Competitive Bidding procedure the company was awarded the license for exploitation of the deposit for 25 years (the Invitation to Bids was published in Hayastani Hanrapetutyun daily newspaper, issued on 21.12.2000). In 2005 the Environmental Impact Assessment (EIA) of Teghout mining and processing plant was conducted and an EIA report was prepared which was submitted to the RA Ministry of Nature Protection for expertise. According to specified legal procedures, on the 23^rd of March, 2006 public consultations and EIA discussions were undertaken in the town of Alaverdi with active public participation.  On the 3^rd of April, 2006 the positive environmental expertise conclusion  (number BP-31) was obtained from the RA Ministry of Nature Protection.

In addition, the working design of exploitation of Teghout copper-molybdenum deposit was submitted to the Ministry of Nature Protection for expertise. The working design of mine exploitation was submitted also to the Ministry of Trade and Economic Development for technical and technological expertise, as well as to "Technical Safety National Centre" SNCO for technical safety expertise.

Ensuring public awareness, according to specified legal procedures, public hearings were conducted in Teghout (12 October, 2006) where the working design of mine exploitation and the impact on the environment were presented to the interested public. On 7th of November, 2006 positive expert conclusion number BP-135 on the working design of Teghout mine exploitation was obtained from the RA Ministry of Nature Protection. In November, 2006 the other positive expert conclusions on the working design were also obtained.

In addition to the public hearings, envisaged by the legislation, discussions on construction of Teghout copper-molybdenum plant and the environmental component of the exploitation project were held on the 5^th of December, 2006 in AARHUS Public Environmental Information center of Vanadzor initiated and supported by OSCE Yerevan office. The discussions involved about 15 representatives of Non-Governmental Organizations (NGOs) and international organizations in addition to heads and representatives of the affected communities (45 participants in total). During the discussions the heads of the affected communities presented a letter addressed to the RA Prime-minister signed by more than 1500 community members where confirming their agreement on exploitation of Teghout deposit they request to implement the envisaged reforestation works fully within the territory of the affected communities. The letter also demonstrates that besides mitigation of the environmental impact of the Project and active involvement of residents of the affected communities in reforestation works and further operation of the forest, the work organization may also serve a good example of effective and coordinated cooperation between communities, NGOs, private sector and state bodies on implementation of projects of national importance.

In November 2007 RA Government passed Decrees 1278-N (on deliberately changing the significance of the soil and on provision of soil for realization of Teghout copper-molybdenum deposit exploitation project) and 1279-N (establishing deliberate changes of the soil significance and recognition of some territories within the administrative borders of rural communities (RA Lori region) of Shnogh and Teghout as of exclusive public interest).

With the initiative of Vallex Group the draft of environmental management plan of construction of Teghout mining and processing enterprise and operation of copper-molybdenum deposit was worked out. The mentioned is a composite document establishing both the environmental aspects to be realized during exploitation of Teghout deposit and the necessary environmental measures to be taken, and mechanisms for controlling their performance. Although no appropriate obligatory procedures are established by RA legislation, Vallex Group held public discussions and hearings included in the environmental management plan previously informing various interested organizations and the public.

Like any other economic activity, exploitation of Teghout deposit inevitably envisages man-caused alterations both in natural habitat and in cultural anthropogenic sphere. Since the territory of Teghout copper molybdenum deposit contains remnants of culture and civilization, as well as historical-cultural monuments bearing valuable information, the company will make every effort to minimize the negative effect of its activity on the areas of cultural and historical value before starting exploitation of the deposit. The company will not take any risky actions introducing undesirable negative environmental changes unless every possible measure is taken, available on scientific ground, to discover every historical and cultural content in the intended zone and to displace or maintain them properly, to systematize and to fix them on reliable bearers. According to RA Government Decree N1278-N issued on November 1, 2007, project establishing measures of preservation of cultural and historical monuments available on the effected territory of Teghout copper-molybdenum deposit (ratified by   a Օrder N416-A of RA Minister of Culture, dating to the 4^th of July, 2008) has been elaborated to ensure maximum possible preservation of historical cultural monuments on the affected territory of Teghout copper-molybdenum deposit and the transfer of the full value information to the descendants. As a result, an agreement was signed with appropriate specialized companies to realize activities at the expense of Vallex Group, in the project on measures concerning the preservation of cultural and historical monuments on the affected territory of Teghout copper-molybdenum deposit (videoarchive).

Current stage implemented works towards the realization of the working project

Vallex Group has already invested around 150 USD million for the construction of Teghout mining and processing enterprise and realization of copper-molybdenum deposit exploitation.