Mining at Amulsar gold spring may begin in September-October 2025 - Minister
YEREVAN, January 13. /ARKA/. Mining at the Amulsar gold deposit in Armenia may begin in September-October 2025, said Armenian Economy Minister Gevorg Papoyan.
"We ordered a high-quality audit, which also confirmed that this project is fully feasible and profitable. We consider that the financing issue will be resolved in the near future. $500 million has already been invested, and the company will invest an additional $100 million of the remaining $250 million. The remaining $150 million will be financed by our financial institutions," Papoyan said at a press conference on Monday.
He noted that construction work will begin in the spring. "In that case, we could start mining by September-October, which will be a significant boost for our economy and industry," the minister added.
Earlier, Hayk Aloyan, CEO of Lydian Armenia (which holds the license to operate the Amulsar gold deposit), stated that 70-80% of the work required to start operating the mine has already been completed, and about $250 million is needed to finish it.
According to him, Lydian Armenia plans to produce approximately 210,000 ounces of gold per year, which, at current global prices, would generate $500 million in revenue and $120 million in taxes.
Earlier, on December 27, 2024, an agreement was signed at the Ministry of Economy of the Republic of Armenia for Lydian Armenia to transfer 12.5% of its shares to the Armenian government as a gift.
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 southeastern part of the country, 13 km from the resort town of Jermuk, between 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 local residents in the areas adjacent to the deposit.
They are concerned that the exploitation of the mine could lead to the contamination of groundwater in Jermuk and Lake Sevan, potentially causing an environmental disaster. In 2018-2019, and again in 2020, protests were regularly held, demanding the cessation of mining activities.
In August 2021, the Investigative Committee of Armenia presented the final expert opinion of Earth Link & Advanced Resources Development (ELARD) as part of the criminal case initiated on July 20, 2018. According to the Investigative Committee, there are no environmental threats from the operation of the mine, and any potential risks can be managed if appropriate measures are taken.
