InternationalThe economic crisis hits the Alaverdi copper foundry
Published: Friday January 23, 2009
The copper foundry at the core of life in Alaverdi in northern Armenia is slowing production. Armen Hakobyan for the Armenian Reporter
Alaverdi, Lori Province, Armenia -
The small town of Alaverdi stretches sinuously along the banks of the Debet river. The cable car moves past the newly constructed church of Saint Narekatsi, upward through the gently falling snow toward the Sarahart neighborhood which, true to its name, spreads over the plateau with its standard residential buildings from the Khrushchev period.
The view from that height takes in the copper foundry, which can truly be considered the heart of Alaverdi, with its 15,000 inhabitants. The bird's eye view of the panorama does not particularly inspire the locals traveling in the cable car. The faces of the locals in the streets, shops and even in the typical Soviet-built department store show no sign of post-holiday spirit. Rather, people are worried and pensive. The only smiles are on lampposts displaying posters with the logo of the owners of the Vallex Group foundry bearing photographs of carefree Alaverdians of different ages and the "I love you Alaverdi" slogan. These hang alternately with posters of the governing Republican party, which have remained in place since the presidential elections in February.
Arsen found employment in the copper foundry or as the locals say, the kombinat, last year. For the 25 year old who bears the burden of caring for his parents and young wife and child, this was salvation; perhaps the only means in his native town to maintain a relatively normal life. "They say that the factory may soon close and no one knows what will happen then. That's why people are worried and gloomy at the beginning of this new year," Arsen says, formulating his and his fellow townsfolk's main worry. We silently watch the smoke rising from the foundry chimney and slowly drift off toward the nearby hill.
60-year-old Robert's son works in Yerevan and his daughter has married and moved to another town. Only he and his wife remain. Robert is a driver by profession and he drives his private car as a taxi to meet the needs of his now-compact family. He is also worried because there is no work in the foundry. When I draw his attention to the smoke rising from the factory, he smiles apologetically and waves his hand: "This is not working at anything like its capacity. It is working a little, but they say it will shut down completely next year. When the kombinat is working, it's not too bad, but now that it has stopped, it is not good. It is bad for all of us; it doesn't matter if you work in the factory, drive a taxi, or are in a trade. I sincerely don't want the kombinat to close. Many of the kombinat workers use the taxi on credit. You see, we all know each other. They receive their wages on the 15th and then they pay up. Their not working affects the business in the shops, and my job. Our region is the poorest. Let's say, during the season of bramble and cornelian cherries, it is not too bad. People go and pick them and sell them and they survive. Generally, it is this kombinat and that's all. If it doesn't work, then you can assume that life in Alaverdi will stop," Robert explains.
Levon, another resident of Alaverdi, knowing that I am a journalist, says, "Write in such a way that the factory won't close. It will not be good if it does. In the past few years, the Alaverdians had started returning from Russia, and now they will begin to leave again. Before, only 3 or 4 lights were on in each building, now only 3 or 4 are not on," says Levon.
Other than the SO2 gas coolants being emitted, the dark clouds of closure have gathered around the Armenian Copper Program's (ACP) (part of Vallex Group) copper foundry. This has been obvious since October-November 2008. ACP Director Gagik Arzumanyan noted in an interview given during that period that by 2009 the fines for polluting the environment paid by the company will multiply ninefold. That factor, together with the drop in global market prices for metals, specifically copper, make the expediency of operating the factory questionable. Further, although there was talk of laying off about 300 personnel starting November 1, the Armenian Reporter was informed by the factory that those people would be given some sort of alternative position within the factory so that they would have some income during the coming one or two months.
Presently, just over 1,000 people work at the Alaverdi foundry and the wages range between 90 to 150 thousand AMD (depending on specialization: miners receive the highest wages). The company's situation is due not only to the global recession, but also to the fact that the extraction of ore from the Alaverdi mines is very costly; buying the ore from other companies is also not economically justified. They hope that operation of the company's Teghut mine and the production of concentrate will also rectify the situation at the foundry, but it is obvious that will not take place within a few months or even a year. During the Soviet era the factory produced up to 40 thousand tons of black copper. At present that figure is barely 7 thousand tons. The production process was previously organized so that the waster would be used to produce 180 thousand tons of marketable sulfuric acid (H2SO4) each year. In principle, it is possible to produce sulfuric acid now instead of poisoning the air with SO2, but the it is now impossible to reach export markets for that kind of produce by train. The poisonous smoke is thus allowed to disperse into the air. People are willing to adapt to the presence of that smoke in order not to fall into the clutches of poverty once again.
