Minister: $150 million loan for Amulsar mine launch nears resolution
YEREVAN, February 6. /ARKA/. The issue of securing a $150 million loan, necessary to begin operations at the Amulsar gold deposit, is in its final stages, said Armenian Economy Minister Gevork Papoyan.
"As for the operation of the mine, the process is currently active. Everything is progressing toward resolving the issue soon. I cannot say with certainty, but when I see the process moving forward, I remain optimistic," Papoyan added at a briefing on Thursday.
According to him, the launch of the Amulsar mine is planned for October this year. "We expect that the country’s economic indicators will improve as a result," Papoyan stated.
On the financing of the mine
Earlier, Hayk Aloyan, CEO of Lydian Armenia (the company holding the license to operate the Amulsar gold deposit), stated that 70-80% of the work required to start the mine’s operations has already been completed, and approximately $250 million is needed for completion. "Of this amount, we have already secured $100 million, and we plan to raise the remaining $150 million from several local banks," said Aloyan.
He also mentioned that Lydian Armenia plans to produce around 210,000 ounces of gold annually, which, based on current world prices, would generate revenue of $500 million and $120 million in taxes.
On December 27, 2024, an agreement was signed at the Ministry of Economy of Armenia for Lydian Armenia to transfer 12.5% of its shares as a gift to the Armenian government.
About the Amulsar deposit
The Amulsar gold deposit is the second-largest deposit in Armenia in terms of pure gold reserves, 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, owned by 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. They are concerned that the operation of the mine could lead to the contamination of groundwater in Jermuk and Lake Sevan, resulting in an environmental disaster.
In 2018-2019, and again in 2020, protests were held demanding that operations cease.
In August 2021, Armenia's Investigative Committee presented the final expert opinion from Earth Link & Advanced Resources Development (ELARD) as part of a criminal case initiated on July 20, 2018. According to the Investigative Committee, the operation of the mine poses no environmental threat, and any potential risks can be managed with the implementation of appropriate measures.
