Over $750 million has already been invested in the Amulsar project in Armenia, and future investments in communities will exceed $100 million, according to the minister
YEREVAN, August 31. /ARКА/. The volume of public and private sector investments in the Amulsar gold mine project already exceeds $750 million, and Lydian Armenia CJSC will invest over $100 million in the long-term development of nearby communities. This was announced by Armenian Minister of Economy Gevorg Papoyan at the signing ceremony of the Community Development Agreement.
According to the Armenian Ministry of Economy, the agreement was signed between the government of the republic, represented by the Ministry of Economy, Lydian Armenia CJSC, and the enlarged communities of Jermuk, Vayk, and Sisian.
"Essentially, we are talking about over $100 million in long-term investments, which Lydian Armenia CJSC will provide to the affected communities, allocating up to $9 million annually," Armenpress quoted Papoyan as saying.
According to the minister, the mine will begin operations in September, at which time the first gold bar is expected to be produced and full production will commence. Papoyan stated that annual tax revenues from the project are estimated to exceed $100 million. Furthermore, the state owns 12.5% of Lydian Armenia's shares and will receive a corresponding share of the profits.
The Minister of Economy noted that funding could be used, in particular, for the construction of roads and water pipelines. With subsidized co-financing for projects, the available funds could be doubled.
Lydian Armenia Executive Director Hayk Aloyan stated that the agreement is legally binding and will remain in effect until the mine's operations are completed. Up to $9 Million Annually for Community Development
According to the Lydian Armenia agreement, the company commits to annually allocating the equivalent of $7 million in Armenian drams for community development during the construction phase.
If the average price of one ounce of gold exceeds $3,550 during the production phase, the annual funding will increase to $9 million. For the first 18 months—from July 1, 2025, to December 31, 2026—the equivalent of $10.5 million is envisaged.
The company's press service told ARKA news agency that the Amulsar gold mine project is scheduled to run until 2039.
Funds will not be allocated directly to community budgets, but rather to the Amulsar Community Development Fund, established by the company. Communities will submit projects to the Fund, and its board will decide on funding. The board will include four representatives from Lydian Armenia and one representative each from Jermuk, Vayk, and Sisian.
According to Lydian Armenia, 70% of the annual funding will be distributed among the three enlarged communities according to a formula established by the agreement. This formula takes into account the population of the communities affected by the project, the area of land used, and their proximity to the mine infrastructure.
Each community directly affected by the project must receive at least 20% of the amount allocated to its respective enlarged community. The list includes Jermuk, Kechut, Gndevaz, Saravan (including Saralanj and Ukhedzor), and Gorayk. The remaining 30% of the funds will be allocated, on a competitive basis, to programs capable of delivering long-term and measurable results for a larger number of residents.
The agreement includes procedures for monitoring the use of funds, reporting, and auditing. Papoyan noted that funding may be used, in particular, for the construction of roads and water pipelines. When implementing projects with subsidy co-financing, the amount of available funds may be doubled.
Lydian Armenia Executive Director Hayk Aloyan stated that the agreement is legally binding and will remain in effect until the mine's completion.
According to the Ministry of Economy, the document was signed by Papoyan on behalf of the government, Aloyan, and the heads of the communities of Vayk Mkhitar Matevosyan, Sisian Hovsep Arakelyan, and Jermuk Manan Gevorgyan. The signing ceremony was attended by Gnel Sanosyan, the government representative at Lydian Armenia, Vahagn Arsenyan, the governor of the Vayots Dzor region, and the governor of the Syunik region.
About the Amulsar mine
The Amulsar gold mine is the second largest pure gold mine in Armenia. It is located in the southeast of the country, 13 km from the resort town of Jermuk, between the Arpa and Vorotan rivers. As of October 2025, the mine's confirmed reserves amount to 73 tons of gold and 294 tons of silver.
Lydian Armenia (founded in 2005, a wholly owned subsidiary of Lydian Canada Ventures, which is owned by the American Orion Mine Finance and the Canadian Osisko Gold Royalties) has been unable to fully exploit the Amulsar mine in recent years due to protests from environmentalists and residents of the surrounding areas. They are concerned that the mine's operation could pollute the groundwater of Jermuk and Lake Sevan, causing an environmental disaster. In 2018-2019, and again in 2020, regular protests were held there demanding a halt to operations.
In August 2021, the Investigative Committee of Armenia presented the final expert opinion of Earth Link & Advanced Resources Development (ELARD) in the criminal case opened on July 20, 2018. According to the Investigative Committee, there are no environmental threats from the mine's operation, and potential risks can be controlled by taking appropriate measures.
In December 2024, Lydian Armenia transferred 12.5% of its shares to the Armenian government free of charge.
