“Vallex” Group companies inform the following:

“Teghut” Mining and Processing Enterprise terminated its activity on January 12, 2018 for the purpose of implementing scheduled-preventive repair works. Simultaneously, since its operation and starting the first quarter of the year 2017 “Teghut” CJSC has been more thoroughly exercising a periodic control over stability of the tailing dam. By realizing the tremendous importance of issue of the tailing dam, the Company has attracted a number of Armenian and international reputable organizations to carry out extensive research and engineering works and provide practical solutions to the Company.

As a result of the studies, it was found out that additional geological and technical works, laboratory tests, as well as preparation and release of drafts are required for improvement of stability of the tailings dam. These are long-term processes which are attributed not to the speed of participants, but by the complexity and volume of processes and activities.

As a result, the Company’s management took the only possible and responsible decision, in particular, not to re-operate the Mining and Processing Enterprise unless the tailing dam indicators have been met in accordance with the highest legislative and international standards.

In the current situation, being unable to bear the financial heavy burden of the whole staff at the time of the stop, the employment contracts concluded with the majority of employees were terminated on the initiative of the Company under the procedure and terms defined by the Labor Code of the Republic of Armenia. All the termination processes of the contracts have been implemented in accordance with the requirements of the Legislation of the Republic of Armenia, by sending 2-month prior notifications to almost all employees of the Company (1200 people), according to the procedure (2 months ago). All the employees of the Company have been paid salaries and all the employees who have been working for an indefinite period at the time of the employment contract have also been paid a disbursement allowance at the rate of one month’s average wage.

At present 333 employees are employed by “Teghut” CJSC, of which 127 are from Shnogh expanded community (Teghut, Shnogh, Karkop). In addition, the Company has undertaken measures to transfer a group of people to other companies dismissed as a result of reductions provide them with appropriate employment.

As concerns the fact that the road leading to “Teghut” CJSC is blocked as of 11.06.2018 by the residents of the community and the protest action, the Company realizes the difficulties of its former employees and adjacent communities, who are in serious social status as a result of an unexpected long-term standstill, and undertakes steps to mitigate the situation.

It is worth mentioning that the Company has always acted solely as regards its tax and financial obligations in the field of law. Moreover, within the framework of its CSR policy, the Company continues to support communities and cooperate with them even in a standstill. Numerous projects, such as kindergarten, street repairs, sewerage system construction, construction of school fences, acquisition of special equipments, etc. have been implemented jointly with the Shnogh community.

On occasion of residents’ employment-related complaints “Teghut” CJSC Management organized meetings on June 2 and 13 with the head of the Shnogh community and the population, as a result of which agreements were reached on the proper response to the voiced questions and in some cases taking specific measures.


Mass media and PR department of “Vallex” group companies