EREVAN, May 16. /ARKA/. The CEO of the Zangezur Copper-Molybdenum Combine Mher Poloskov told the Aravot daily about the latest changes in the combine’s shareholder composition, its plans for an IPO and prospects for the development of the mining industry.
Question – Mr. Poloskov, talk around the combine’s shareholders have intensified again. Could you explain what changes have occurred in the structure of its shareholders?
M. Poloskov – The main change is that in accordance with the decision of the meeting of shareholders, the combine acquired 75% of the shares from the German Chronimet group of companies and entered into an agreement with the German company SI 2 Capital to sell it 12.5% of those shares. These changes, in accordance with the procedure, established by the legislation of Armenia, are reflected in the declaration submitted as part of the Extractive Industries Transparency Initiative (EITI) standards.
More precisely, the 12.5% stake in the combine is owned by Zangezur Mining, which owns 100% of Moon Metals, which, in turn, is wholly owned by Volnart Finance Limited, whose sole shareholder was Jean-Jacques Louis Paul Buffet. Paul Buffet sold his share to Mikhail Zurabov. This means that Zurabov is the new real owner.
I want to emphasize that these and similar changes that may periodically occur are not subject to coordination with shareholders and the management of the combine. We do not and cannot have an influence on such rearrangements. As CEO, I am informed about the changes at this level ex post facto and, according to EITI standards, I am obliged to reflect the information received about the chnages in the declaration of real owners, which has been done.
Now we are actively negotiating with leading mining enterprises, trading companies and development banks on the possible redistribution of part of the combine’s shares. This suggests that changes in the structure of shareholders will continue, the main purpose of which is to ensure the necessary level of the company’s equity.
The above is more than important in the context of forecasts of shocks of the global economy, the expected recession and an even greater decline in prices for industrial metals. In addition, our medium-term policy provides for a change in the organizational form of the company regarding its publicity. Currently, we are actively implementing a number of events that will become the basis for preparing the company for an initial public offering (IPO).
After the expected transformation, the list of shareholders will increase even more, and its activity will also be regulated by the laws of those countries where its shares will be placed. We are interested that the initial public offering take place on the Armenian Stock Exchange. The company has already taken the first important step in this direction by successfully placing bonds worth more than $50 million on the Armenian Stock Exchange.
Given that the path we have indicated will lead to an expansion of the combine’s shareholders, I would like to draw the attention of our potential new partners to one idea based on world experience in the development of the mining sector. I think that Armenia should take advantage of the professional potential generated by generations in the field of mining and metallurgy, the innovative technological solutions that are already available and the possibilities of attracting financial resources for the development of mining projects outside of Armenia.
According to my estimates, Armenia has real opportunities in the foreseeable future to become a center for large holding companies that manage enterprises operating mines in third countries. This will allow to “export” the resources I have listed and import their results. Our observations and modest experience indicate that this initiative can be in demand in many, especially developing countries.