Activist deplores lack of reforms despite state ownership in ZCMC

The Inspection Body for Environment and Subsoil in Armenia has launched proceedings into a pipeline accident at the Zangezur Copper-Molybdenum Combine (ZCMC), one of the country’s largest mining enterprises. The agency has stated that an investigation is underway and a formal report will be submitted to the competent authorities if environmental damage is confirmed.

Although the Armenian government owns over 20% of ZCMC, environmentalist and human rights activist Oleg Dulgaryan argues that state involvement has failed to bring about improvements in environmental policy or corporate governance.

“The launch of proceedings doesn’t indicate that the government is seeking a larger stake in the company or that its current ownership has led to improved management,” Dulgaryan told Panorama.am in an interview on Saturday. “Armenia’s state institutions often function in silos, lacking coordination. I believe the Inspection Body likely identified a blatant violation, which compelled it to act.”

Dulgaryan highlighted that past probes failed to result in substantive reforms at ZCMC or other mining companies.

“I don’t believe anything new has emerged here, this is a recurring practice. I see no indication that management practices have improved,” he said. “The state’s involvement might have led to increased tax revenues, but it has not addressed underlying structural issues."

He also criticized the state’s lack of accountability in corporate decision-making. Despite holding a significant stake, the government did not intervene when eight ZCMC employees were sued for approximately $4.85 billion in damages allegedly caused to the company.

“What is the role of state representatives in the company if they remain passive in the face of such major legal actions?” Dulgaryan asked. “Without systemic reforms, meaningful change is unattainable.”

He further expressed concern about increasing legal intimidation of environmental activists.

“It's good that there’s at least a formal investigation now, but community members are often too afraid to even raise environmental concerns publicly. They fear retaliatory lawsuits,” Dulgaryan said, referring to the increasing use of Strategic Lawsuits Against Public Participation (SLAPPs) as a tool to silence critics.

“If Armenia truly wants systemic reforms, it should adopt legislation to prevent SLAPPs,” he added.