Economic Court to Hear a Case Against Ararat Gold

15:04 24/11/06


The Economic Court will continue the hearing of
`Ararat Gold’ enterprise vs. Armenian Nature
Protection State Inspection on December 1. This is not
the first lawsuit between the parties. The last court
hearing ended up with reconciliation.
The Nature Protection State Inspection has unveiled
that the company has misreported on the volume of
gold. The inspection has drawn up a statement. The
company did not agree with the statement and issued a
case at the Economic Court. A special committee was
set up by the court to investigate the case. The
committee supported the statement saying 500 kg gold
was misreported. The inspection has also found out
non-compliances in the reports of the chief accountant
and the geologist.

Figures were misleading small in quarterly reports.
The statement also says the company experts have not
made a re-assessment of mines. The inspection believes
it is profitable to extract gold even in small
quantities at the present reality taken the case of
the gold prices in the world market. They say the
company relies on the assessment of gold made in 80s.

The management of Ararat Gold complained that the gold
processing factory is in Ararat whereas the mines are
in Sevan. The management suggested building a gold
processing factory in Sevan which raised a discontent
by environmentalists, NGOs and mass media. The
government, in its turn, said, `All conditions were
known when they took hold of the mines.’ Experts are
not sure the poisonous water will not run into the
lake. Further, building such a factory in Sevan is
prohibited by law.

Followed this debate, the volumes of gold started to
diminish. Some say the logic is the following: `We
suffer losses, why you shouldn’t?’
Arthur Hambarzumyan, legal department head at the
nature protection ministry said, `Negotiations are
conducted with the company beyond the statement.
Global changes are expected in the relations of the
company and the state. It is not clear yet if the
company and the inspection will find a compromise.’

P.S. The company has not insured its employees despite
of the fact that the insurance money is not a big sum.
The insurance of employees in gold industry is a
priority and that is the policy of all big companies.
Moreover, some say the management does not treat well
the Armenian nationals in the company. /`My Right’

Send instant messages to your online friends

From: Emil Lazarian | Ararat NewsPress

You may also like

Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS