CEO of HSBC Bank Armenia Paul Edgar said yesterday that the bank uses its business contacts and experience to develop socially responsible and viable mining industry in Armenia.   

Paul Edgar said this within the frames of Modern Mining in Armenia business conference on November 16, organized jointly by the US Embassy, Armenian Ministry of Economic Development and Investments and Ministry of Energy Infrastructures and Natural Resources, as well as HSBC Bank.

“Mining industry share in the general portfolio of HSBC Bank Armenia is growing. We already have some customers from this sector, and now try to find ways of helping them by providing the right trade finance solutions for their physical consumption chain,” Paul Edgar said.

According to Paul Edgar, within the frames of the conference, the bank aims at introducing mining companies and service providers with the current opportunities in the sector, as well as support bringing new technologies into Armenian market, using the bank’s global network.

Andrew Robinson, Head of Commodity and Structured Trade Finance UK and France, presented the main trade finance solutions for companies in the sector of mining and raw materials.   

“As a global bank, we are active in project financing, we implement export credit through mechanisms, such as prepayments and pre-export financing,” he remarked.

According to Andrew Robinson, financing mechanisms for customers are chosen individually, by observing their activity.

Head of EBRD Yerevan Resident Office Mark Davis also attached importance to the perspective of mining industry development in Armenia, introducing current situation in the sector, as well as challenges and expectations.

“Armenia is a good place for business. Nevertheless, large share of foreign investments in the region flow to Georgia. I think, that Armenia is not enough recognized as an investing destination, and there is still a lot of work to do in that direction,” he observed.

According to Mark Davis, additional revenues from the development of mining industry can play an important role in easing the country’s tax burden.   

In this context he attached importance to the maintenance of sustainable growth in the sector, taking into consideration all beneficiaries: interests of business, public and the state.

US Ambassador to Armenia Richard Mills noted that provided that mining industry is based on transparent, responsible, social and international environmental standards it can be a profitable investment for Armenia.

“Armenia has real opportunities in mining sector, which should be realized with protection of environment and the workers’ safety. Amulsar gold mine project is a shining example that it’s possible to have a viable mining industry with application of environmental standards in Armenia,” Ambassador Richard Mills said.

Suren Karayan, Minister of Economic Development and Investments of Armenia noted that mining industry is one of the leading sectors of Armenian economy, with a substantial share in export sector.

Touching upon investment attractiveness of the sector, the minister said that steps are being taken to create favorable conditions for foreign investors, develop infrastructure and solve logistics issues.