Active discussions between banks and government on Amulsar - UBA head
YEREVAN, February 25. /ARKA/. Active discussions are underway in Armenia regarding the financing of the Amulsar gold mine development, stated Daniel Azatyan, Chairman of the Union of Banks of Armenia (UBA).
"In addition to 1-2 main banks, several other banks have expressed their willingness to assist and provide additional financing for the project," Azatyan said.
He refrained from naming the banks, as other banks may also agree to finance the project.
"Discussions are currently ongoing with the government regarding the terms and amount. At the moment, the figure being discussed is $300 million," Azatyan added.
Earlier, Armenian Minister of Economy Gevorg Papoyan mentioned that the process of securing a $150 million loan, required to begin operations at the Amulsar gold mine, is in its final stages. According to him, the launch of the Amulsar mine is planned for October 2025.
Regarding Mine Financing
Previously, Hayk Aloyan, CEO of Lydian Armenia (the company holding the license to operate the Amulsar gold deposit), stated that 70-80% of the work needed to begin operations at the mine has already been completed, and approximately $250 million is required to finish it. "We have already raised $100 million, and we intend to secure the remaining $150 million from several local banks," said Aloyan.
According to him, Lydian Armenia plans to produce around 210,000 ounces of gold annually, which, at current global prices, would generate $500 million in revenue and $120 million in tax payments.
On December 27, 2024, an agreement was signed at the Ministry of Economy of Armenia, transferring 12.5% of Lydian Armenia's shares as a gift to the Armenian government.
About the Amulsar Deposit
The Amulsar gold deposit is the second-largest pure gold deposit in Armenia, containing approximately 31 million tons of ore and 40 tons of pure gold. It is located in the southeast of the country, 13 km from the resort town of Jermuk, in the interfluve of the Arpa and Vorotan rivers.
Lydian Armenia (founded in 2005, a 100% subsidiary of Lydian Canada Ventures, which is owned by the American Orion Mine Finance and Canadian Osisko Gold Royalties) has been unable to fully exploit the Amulsar mine in recent years due to protests from environmentalists and residents of nearby areas. They are concerned that mining operations could lead to the pollution of Jermuk's groundwater and Lake Sevan, causing an environmental disaster.
In 2018-2019, and again in 2020, protests were regularly held, demanding that work be halted. In August 2021, the Armenian Investigative Committee presented the final expert opinion from Earth Link & Advanced Resources Development (ELARD) within the framework of a criminal case initiated on July 20, 2018. According to the Investigative Committee, there are no environmental threats from the mine's operation, and the potential risks can be managed if the appropriate measures are taken.
