A Soviet-born American businessman with ties to President Donald Trump’s administration plans to expand one of Armenia’s largest copper mines and redirect most of its output from China to the US.
Konstantin Sokolov, owner of US-based Dynamic Frontier Holdings, recently acquired the Teghut copper-molybdenum mine for US$228.5 million ($325.2 million), according to Bloomberg.
Located in Armenia’s northern Lori province, Teghut is the country’s second-largest copper producer, with most of its output currently exported to China.
Sokolov plans to redirect the mine’s shipments to the US through new trading agreements when the existing offtake contract expires in December.
“One of the main objectives of this transaction was to make Armenia’s critical mineral resources available to US supply chains,” Sokolov told Bloomberg.
Sokolov was appointed by the Trump administration to lead a US$201 million investment fund focused on the Caucasus and Central Asia, and has donated to Republican political groups.
Plans to boost copper production
Alongside the export shift, Sokolov is planning a major expansion of the Teghut operation.
The new owner aims to increase annual copper concentrate production by approximately 50%, from around 80,000 tonnes to between 120,000 and 130,000 tonnes.
At full capacity, the expanded operation is expected to produce concentrate containing approximately 26,000–28,000 tonnes of copper annually.
According to Sokolov, the additional capacity is scheduled to come online in 2030, with full production expected in 2031.
Historical estimates put the deposit’s ore reserves at approximately 450 million tonnes (Mt), containing 1.6Mt of copper and nearly 100,000 tonnes of molybdenum.
The acquisition also ends years of Russian ownership at Teghut.
VTB Bank, which is under US sanctions, took control of the mine in 2019 after its previous owner defaulted on a US$400 million loan.
According to Bloomberg, Dynamic Frontier faced competition from several potential buyers, including Russian and Chinese firms, before securing the asset with its US$228.5 million bid.
The transaction received authorisation from the US Treasury Department’s Office of Foreign Assets Control (OFAC), as well as approval from Armenia’s competition regulator.
US expands critical minerals influence
The acquisition comes as Washington seeks to reduce its dependence on China for minerals used in manufacturing, electronics, and defence equipment.
The Trump administration has been looking to strengthen its economic influence across Central and Western Asia, including through cooperation agreements with countries such as Kazakhstan, Uzbekistan, and the United Arab Emirates.
Sokolov said the Teghut transaction aligns with Washington’s broader strategy to diversify critical minerals supply chains.
“It made a lot of sense for the US to support this transaction because it aligns perfectly with what this administration is trying to achieve in the region,” he told Bloomberg.
“All of the output will go to US supply chains,” he added.
For Armenia, the investment could open a new export market for one of its most important mineral resources while reducing Russian ownership in the country’s mining industry.
However, Russian-linked investors continue to hold significant interests in Armenia’s mineral sector.
The country’s largest mining company, Zangezur Copper-Molybdenum Combine, remains predominantly owned by entities connected to Russian billionaire Roman Trotsenko.
Write to Jackson Chen at Mining.com.au
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