By 2038, very few mining companies may remain in Armenia. The remaining companies may leave the country if nothing is done, in which case the industry will reach a dead end. This was stated by Roman Khudoli, Executive Director of the Zangezur Copper and Molybdenum Combine (ZCMK), at the “Armenia Mining 2025” forum on October 3.
According to him, no new deposits have been discovered in Armenia over the past 10 years, and not a single new enterprise has been created. This is a very serious problem that must be addressed.
“The Armenian government’s development strategy is good, but it will remain on paper unless there is joint action. Trust is essential. Trust is essential when implementing any system,” he noted.
Khudoli emphasized the importance of building relationships based on cooperation, not on mutual accusations.
He also identified geology as a key issue. “A mine operator can’t solve this problem on their own. We’re trying to solve it ourselves through exploration, but no company can do it entirely on its own. Therefore, we need a very strong government strategy and policy, including in the exploration sector.
The first thing an investor expects is an absence of uncertainty. If there are clear rules, even strict ones, then there will be investors willing to work by them.”
If the rules are unclear, work will slow down. That’s why trust is paramount. The rules of the game must be crystal clear and respected by all parties: the government, mine operators, and society. This creates trust, which ensures significant growth.
The mining sector is experiencing rapid growth in many countries today, but Armenia hasn’t seen such rapid growth in a long time. Our industry is very inert. If we don’t do this today, we, as an industry, will stop tomorrow. Of course, some companies will continue to operate, but that will be a completely different matter. When I talk about public policy, I’m not just talking about digitalization, but also about the creation of the Geological Survey of Armenia, which will survey future mines, study them, excavate them, and then auction them off. This is the right thing to do; this is the future.
“It’s crucial to transition to new formats, because to some extent, we’ve become hostage to the Soviet model. There are established standards around the world, for example, in Canada and Australia. We need to take concrete steps and set deadlines for the transition to these models. Mining companies understand that when there are deadlines and responsible people, everything starts to work,” Khudoli emphasized.