A visit of VTB delegation headed by the Chairman and CEO Andrey Kostin to Armenia took place on 27 May 2008. In the course of the visit, the President of the President of the Republic of Armenia Serge Sargsyan met with VTB Chairman and CEO. And
A visit of VTB delegation headed by the Chairman and CEO Andrey Kostin to Armenia took place on 27 May 2008. In the course of the visit, the President of the President of the Republic of Armenia Serge Sargsyan met with VTB Chairman and CEO. Andrey Kostin congratulated Serge Sargsyan on his inauguration and discussed with him outlook for larger investment cooperation of companies and financial institutions from both countries.
On the same day, Andrey Kostin and the Prime Minister Tigran Sargsyan attended the signature ceremony of the facility agreement on Armenian Copper Program investment project involving an ore mining production to be arranged at Tekhut copper-molybdenum deposit.
Total investment raised by the transaction counterparties into development of Tekhut copper-molybdenum deposit and construction of an ore mining and processing enterprise on the territory of Armenia will exceed USD 275 million. VTB is going to take part in financing of the project for a 12-year term, and the corporate control by VTB will be conducted by representatives of the Bank in governance bodies of the project operator - Tekhut company (Armenia). Launch of the deposit and the plant is expected after 45 months from the facility disbursement date, and the plant will reach full capacity after 15 months from the launch date.
According to Andrey Kostin, "this agreement is one of the largest investment projects involving Russian financial institutions in the post-Soviet area. We hope our cooperation will benefit both the Armenian economy and our business development in this region. VTB Group plans to vigorously expand its activities in Armenia by taking part in most important investment projects for the Republic".
Under the visit, Andrey Kostin also met with the acting Chairman of the Central Bank of Armenia Artur Dzhavadian. In the meeting, the parties discussed further development of the financial service market in Armenia, specifically, in expanding the existent range of banking products offered to individual customers in the Republic. Andrey Kostin distinguished the success achieved in optimising VTB Group divisions in Armenia comprising now about 90 offices. In retail banking, VTB was one of the first in Armenia to start making mortgage loans, and continued expanding the services in card business. In this respect, in the course of the visit Andrey Kostin and Artur Dzhavadian discussed VTB Group's future participation in developing and implementing a pension payment system through bankcards in Armenia.
Tekhut copper-molybdenum deposit is located in the North of Armenia, Lori Region, near Alaverdi, and represents the second largest copper-molybdenum deposit in Armenia. Recoverable reserves of copper are 701,500 tons and molybdenum - 32,000 tons. An ore mining and processing enterprise will be built under the project having full capacity of 83,700 tons of copper concentrate and 1,600 tons of molybdenum concentrate a year. Ore mining on the deposit will continue 24 years.
As of December 2007, deposit reserves were assessed, licences were obtained for the deposit exploration and development, a working project was prepared and formalisation of land plot documents for the project is under way.