Project outline

The purpose of the project is to organize the comprehensive recycling of solid minerals from the tailings stocks of “Alyotig” Limited Liability Company (Kapan, Republic of Armenia) for the further extraction of the entire spectrum of useful components contained therein.

The project focuses on the design, construction and putting into operation of a modern recycling complex, specifically an enrichment plant, to obtain a commercial product for later sale on the global market.

The implementation of this project will be aimed not only at the creation of new jobs, and the provision of stable tax revenues to the state budget, but primarily at the radical solution of the problems of improving the environmental situation during the allocation of tailings stocks, by the method of phased recycling of the latter, by building and putting into operation a new enrichment plant.

Brief description of the project

The primary goal of the project is the industrial exploitation of tailings stocks by designing and constructing a modern enrichment plant with a production capacity to recycle 12.5 million tons of primary raw materials per year. Moreover, this project will leverage the technology of global leaders in the field of complex recycling and solid mineral enrichment, such as Metso (Finland) and BGRIMM (PRC), including the production and supply of main and auxiliary technological equipment from the mentioned manufacturers.

Alongside the maximum extraction of useful components contained in tailings stocks, the project will significantly contribute to ensuring environmental safety, focusing on the maximum reduction of environmental pollution in compliance with the legal standards of the Republic of Armenia in force.

Ultimately, the foremost goal of this project is to radically improve the ecology and environmental health in the area of the man-made mine of solid minerals artificially created more than fifty years ago.

Location of the plant

The multi-million stocks of the newly created man-made mine, amounting to around 500-600 million tons, were formed due to the long-term production activities of "ZCMC" CJSC, which operates the Kajaran copper-molybdenum mine located 330 km from Yerevan.

Over the years, this combine has produced only two types of end products: copper and molybdenum concentrates․ The remaining of useful components have been stored and continue to accumulate in three tailings, subsequently being written off from the balance sheet of the exploited mine reserves.

Model of Processing plant

A model of the future processing complex for large-scale production of aluminum oxide, as well as the associated extraction of a number of rare earth, non-ferrous and other metals.

Advantages of the project

The profitability of this project is based on the following key factors:

• Almost Free Raw Material Base: "Alyotig" LLC, as the sole owner of the enrichment tailings of "ZCMC" CJSC, has access to three tailings. Two of these tailings are currently conserved, while the largest one, which is in operation, is supplemented annually by 20-25 million tons due to the ongoing production activity of the existing ore-processing combine;
• Long-Term Resource Security: the existing ore-processing combine has balance reserves that provide about 150 years of security, including over one billion tons of copper and molybdenum ore reserves;
• Minimized Logistics Costs: the project will benefit from the priority use of raw materials supplied for recycling through existing tailings pipeline transport, significantly reducing logistics costs;
• No Additional Costs for Raw Material Mining and Processing: there will be no extra costs for initial raw material mining and further processing, including breaking and crushing of fractions, as these operations were previously carried out during the production of copper and molybdenum concentrates by "ZCMC" CJSC.
• Savings on Investment Costs: "Alyotig" LLC will benefit from additional savings by significantly reducing the initial costs of creating the recycling complex infrastructure. This will be achieved by utilizing existing highways serving "ZCMC" CJSC and connecting to the region's existing electricity, gas, and water supply networks.
• Significant Land Resources: "Alyotig" LLC has acquired approximately 40 hectares of land as private property in the region where the company's dumps are located and where the planned mining activities will occur.

Project status

Currently, the project is in the investment phase of implementation.

All key performers have been identified, including the company's management team and leading specialists in the critical areas of future production and economic activities. Additionally, all stages of the investment period have been defined.

At this stage, it is crucial to secure sufficient borrowed or investment funds to advance the project. These funds will be used to develop technological regulations for producing the main and related commercial products, design the main buildings and structures of the production complex, and purchase, supply, install, operate, and adjust the primary and auxiliary technological equipment.

The investment project is scheduled for implementation over a period of three calendar years.

Following the installation, operation, and adjustment phases, the project will transition to the operational phase, which will last for 7 years within the forecast period. The planning horizon for the investment project extends to 10 years.

The need for funding

To achieve the main goal of the project, specifically the radical improvement of the ecology and the health of the environment in the region of the newly created man-made mine of solid minerals, through the solution of the set problems, in the way of organizing the comprehensive recycling of the tailings stock of "Alyotig" LLC, it will be essential to secure adequate funding for the implementation of this project.
The project does not anticipate investing any of its own funds.

Loan term: 7 years.
Repayment deferment of the principal amount: 3 years.

The investment funds will be provided in installments to finance the later stages of the work.

1. Development of Technological Regulations: Develop technological regulations for recycling the current tailings of "ZCMC" CJSC to determine the cost of producing the final product and other technical and economic indicators of the project.

2. Contract Signing and Advance Payment: Finalize contracts and make advance payments for the production and supply of the main and auxiliary technological equipment. Additionally, develop the project for the construction of a modern enrichment factory for the complex recycling and extraction of all kinds of useful components contained in the dumps of "Alyotig" LLC.

3. Execution of Design and Research Works: Conduct comprehensive design and research activities, including the study of construction structures, land plot consolidation, collection of all baseline and permit documents (BPD), and performing state expert examinations for the "Construction of a New Recycling Plant" facility.

The second tranche will be provided in 6-8 months, contingent upon the development of technological regulations, execution of design works for the production and supply of main and auxiliary technological equipment, specification of the main parameters of the business plan of the project, and design of the primary buildings and structures for the new enrichment plant.

This tranche will fund the purchase and supply of technological equipment, construction of the plant's buildings and structures, infrastructure development for the project, and commissioning of the modern recycling complex.

Global markets

All the products produced by "Alyotig" LLC, in the composition of collective concentrates of non-ferrous metals and their compounds, a number of rare earths and other useful components, will be sold in the world metal markets.
All products produced by "Alyotig" LLC, including collective concentrates of non-ferrous metals, their compounds, rare earth elements, and other valuable components, will be sold in global metal markets.

The profit obtained by the enterprise from this will be mainly directed to the repayment of borrowed or investment funds of the company, and after that to the further development of this project.

The profit generated by the enterprise will primarily be used to repay borrowed or invested funds, with any remaining funds directed towards the further development of the project.