Armenia does not have an enormous mining industry, with the total area used for subsoil exploitation comprising only 0.51% of the country’s territory. This was stated by Sergey Khachatryan, Ph.D. in Technical Sciences and lecturer at the National Polytechnic University of Armenia, in a conversation with Iravaban.net.

At the same time, the annual production volume at current prices from mining and open-pit operations within the entire industry during 2018-2022 fluctuated between just 15.52% (2018) and 24.38% (2021). “Around 11,300 people were employed in the mining industry during 2019-2022, representing approximately 11% of total industrial employment.”

“An interesting picture emerges when analyzing statistical data related to employment. According to this data, around 11,300 people were employed in the mining industry during 2019-2022, representing approximately 11% of total industrial employment,” notes Khachatryan.

The physical volume of mineral extraction in Armenia’s mining industry is primarily driven by copper-molybdenum ore mining, which consistently exceeded 30 million tons annually during 2019-2022, nearly reaching 32 million tons in 2020.

In 2021 and 2022, copper ore extraction, as the leading sector, represented 35% and 47.6% respectively of total mining industry output at current prices. “However, considering that the global copper market volume in 2022 was approximately $170 billion (source: http://www.statista.com), while local production was $555.6 million (based on 2022’s average annual exchange rate of 435.7 drams per USD, source: https://armstat.am), we can conclude that Armenia’s share in the global copper market in 2022 was only about 0.3%.

The picture is different for molybdenum extraction. During 2022, approximately 250,000 tons of molybdenum were extracted worldwide, with Armenia producing around 7,800 tons, representing about 3.12% of global production.”

In conclusion, while Armenia’s mining industry physically occupies only about 0.5% of the country’s territory, it holds significant weight in the overall industry, creating a substantial number of high-paying jobs and providing significant budget revenues.

At the same time, even Armenia’s leading mining sectors do not occupy a significant place in the global market.