All problems are solvable- Kerobyan on economic benefits and environmental risks of Amulsar mine’s development

YEREVAN, March 1. /ARKA/. Armenian Economy Minister Vahan Kerobyan endorsed the government’s decision to restart the Amulsar gold mining project that was disrupted by protesters shortly after the 2018 “velvet revolution.”
Vahan Kerobyan, Lydian Armenia company’s board member Jeffrey Coach, and a senior executive of the Kazakhstan-based Eurasian Development Bank (EDB signed earlier this month a memorandum of understanding in Yerevan to restart the project.
The company will have to raise $250 million for finishing the construction of mining and smelting facilities at Amulsar. To that end Lydian Armenia will borrow $100 million from the EDB and another $50 million from an Armenian bank.
The company plans to produce 7 tons of gold per year. Armenian government will receive 12.5% of the new company's shares in return for its pledge to manage their risks. The Lydian Armenia is expected also to pay between 30 and 40 billion drams ($75-$100 million) in various taxes each year and create hundreds of jobs.
"The environmental issues have been studied in detail and are being duly solved. The license of the mine is in force. In this sense, we do not see any problems, and we are confident that we will be able to properly respond to the issues that may arise in future," Kerobyan said in an interview with the Public Television of Armenia.
He said his confidence is based on the project’s compliance with Armenian legislation, the proper level of inspection bodies, as well as the company's high standards.
"We know who the shareholders are, what kind of work these shareholders do in other countries," he explained
"Any such project is an opportunity to get closer to the full implementation of the government program," he said.
Kerobyan also noted that having a company with Canadian-American as well as English investment in the three border communities would prevent residents from leaving because they would have high-paid jobs.
"In general, there will be a contiguous ecosystem that will ensure that economic activity in these communities is at high level. Today we're discussing construction of multifamily residential buildings in the Vayk community, which has never happened before, i.e., investors from other areas - development, agriculture, tourism - are getting interested in the region because they understand that a large facility generating economic activity will be formed there," he said.
In response to a question about the environmental risks voiced by the opposition, the minister stressed that there are no non-renewable problems in the context of the operation of the mine. Regarding the impact on human health, he said all problems are solvable.
"Licenses have been issued, Armenia has undertaken international obligations, and the failure to fulfill them has already severely damaged our investment attractiveness," said Kerobyan.
Amulsar gold mine is Armenia's second–largest gold mine in terms of pure gold reserves. It is located in the southeast of the country, 13 km from Jermuk resort town, between rivers Arpa and Vorotan. The deposit contains about 31 million tons of ore and 40 tons of pure gold.
Lydian Armenia (established in 2005, a 100% subsidiary of Lydian Canada Ventures owned by the American Orion Mine Finance and Canada's Osisko Gold Royalties) was not able to develop the Amulsar mine in full due to protests by environmentalists and residents of the neighboring communities.
They are concerned that the operation of the mine may lead to the pollution of underground waters of Jermuk and Lake Sevan, causing an environmental disaster. Protests were regularly held there in 2018-2019, then again in 2020, demanding that the operations stop.
In August 2021, the Investigative Committee of Armenia published the final expert report commissioned to Earth link & Advanced Resources Development (ELARD) in the framework of a criminal case initiated on July 20, 2018.
According to the Investigative Committee, there are no environmental threats from the operation of the mine, and the likely risks can be controlled if appropriate measures are taken. -0-