$750 million to be invested in development of Amulsar mine in Armenia
YEREVAN, October 11. /ARКА/. On October 10, Armenian Minister of Economy Gevorg Papoyan visited the Amulsar gold mine to assess Lydian Armenia's mining project.
The total investment in this initiative is projected to be $750 million, with $250 million specifically designated for the completion of construction and the commencement of mining operations, as reported by the Ministry of Economy's press service.
Accompanied by Lydian Armenia Director Hayk Aloyan, the minister inspected the residential complex intended for 960 individuals and was informed about the living conditions of the employees. He also evaluated the extensive infrastructure and construction activities at the Amulsar mine, which involves more than 10 companies.
"The Amulsar project represents one of the most significant investment endeavors in our nation. It not only promotes industrial growth but also creates new employment opportunities and generates substantial tax income for the state budget," the minister remarked.
The mine's verified reserves consist of 73 tons of gold and 294 tons of silver. The final output will be "dore"—a gold-silver alloy. Given the current market prices for gold, the annual taxes and royalties during the production phase of the mine are expected to surpass $120 million.
As of October 1, the Amulsar project had employed 890 individuals. More than 1,000 jobs are anticipated to be created throughout the mine's production phase.
Additionally, the company has pledged to provide annual payments of $7 million to the residents of the Vayk, Sisian, and Jermuk communities surrounding Amulsar.
Papoyan was joined by Vayots Dzor Governor Vahagn Arsenyan, Deputy Minister of Economy Edgar Zakaryan, and Gnel Sanosyan, the Armenian government's representative on the Lydian Armenia Board of Directors.
In December 2024, Lydian Armenia transferred 12.5% of its shares to the Armenian government at no cost.
About the Amulsar deposit
The Amulsar gold deposit ranks as the second largest pure gold deposit in Armenia, containing roughly 31 million tons of ore and 40 tons of pure gold. It is situated in the southeastern part of the country, 13 km from the resort town of Jermuk, within the interfluve of the Arpa and Vorotan rivers.
Lydian Armenia, established in 2005 and a wholly owned subsidiary of Lydian Canada Ventures—which is in turn owned by the American Orion Mine Finance and the Canadian Osisko Gold Royalties—has faced challenges in fully operating the Amulsar mine in recent years due to protests from environmental activists and local residents.
These individuals are apprehensive that the mine's operations could contaminate the groundwater of Jermuk and Lake Sevan, potentially leading to an environmental catastrophe. Regular protests demanding a cessation of operations occurred in 2018-2019 and again in 2020.
In August 2021, the Investigative Committee of Armenia released the final expert opinion from Earthlink & Advanced Resources Development (ELARD) regarding the criminal case initiated on July 20, 2018. The Investigative Committee concluded that there are no environmental hazards associated with the mine's operations, and any potential risks can be managed if suitable measures are implemented.-0-
