A shareholder of the Zangezur Copper-Molybdenum Combine (ZCMC), the largest mining enterprise in Armenia, Walnord Finance Limited, has filed an arbitration claim against the Armenian government. The company alleges that its investments in the country were not protected. Walnord Finance Limited owns 12.5% of ZCMC shares.
Before the arbitration process, the company initiated dozens of lawsuits against ZCMC, its shareholders, and former shareholders through its other companies in Armenia, seeking to invalidate several share purchase and sale transactions.
A victory in arbitration could have serious economic consequences for the Armenian government. According to Walnord Finance Limited, their investments in ZCMC were undermined by a "politically motivated campaign" by the government aimed at acquiring a significant stake in the plant.
"Specifically, the government did not allow Walnord Finance Limited to exercise its legitimate ownership rights to ZCMC shares, resulting in losses of at least $1.2 billion. According to expert estimates, the amount of damages could increase significantly," the company's statement said.
Despite Walnord's efforts to negotiate since the dispute notification, the Armenian government has refused to cooperate with the company. "On the contrary, the government escalated the dispute by supporting attacks on Walnord's Armenian subsidiaries—CJSC 'Mun Metals' and LLC 'Zangezur Mining'," claims Walnord Finance Limited.
Located in southern Armenia, the Zangezur Copper-Molybdenum Combine is the largest mining company in Armenia and ranks among the top ten molybdenum producers in the world. In 2022, it became the largest taxpayer in the Caucasian republic.
In October 2021, 60% of ZCMC shares were acquired by the Russian company GeoProMining (owned by Gleb Trotcenko). The company transferred 25% of the acquired shares (15% of the total shares) to the Armenian government.
