Epress.am News from Armenia
China-focused Fortune Oil plans to invest $500 million in Armenia’s iron mining industry, the Armenian prime minister’s press service said in a statement.
The statement was released on Wednesday after a meeting between Armenia’s prime minister and the company’s executive vice-president, Reuters reports.
There were no other details in the statement.
The company, which manages operations in oil and gas supply and infrastructure projects in China, reported in January 2011 that it had acquired a 35 percent stake in Armenian iron ore miner Bounty Resources Armenia, which controls three iron mines, for $24 million.
It plans to increase its stake to 50 percent, paying an additional $16 million.
The three iron ore mines are located in the Armenian towns of Hrazdan and Abovyan and the village of Svarants.
The mine is Hrazdan, which is planned to be developed first, contains high quality iron ore with 40 percent iron concentration.
It’s estimated to contain 77 million tonnes of iron ore and is expected to be developed over 15 years, starting production from 2014.
The mine in Abovyan is estimated to contain 255 million tonnes of iron ore, while Svarants mine is estimated at 1.5 million tonnes.