Pashinyan regards the Amulsar mine development program "a very good project"
YEREVAN, March 6. /ARKA/. The Amulsar gold mine development program is a very promising project, according to Armenian Prime Minister Nikol Pashinyan.
"Environmental issues were raised during the study, and appropriate, reliable answers were provided. We believe that the program is beneficial both economically and socially. It is also manageable from an environmental and ecological perspective and will meet the necessary standards," he said in response to questions from parliamentarians.
He added that the citizens of Armenia, through their government, hold a stake in this project, and its implementation aligns with the national interests of the Republic.
Earlier, the Armenian government provided Lidyan Armenia (which holds the license to exploit the Amulsar gold mine) with budgetary guarantees for securing a loan of up to $150 million. This will enable the company to secure financing from local commercial banks, which is essential to begin the development of the mine.
On the financing of the mine
Previously, Lydian Armenia CEO Ayk Aloyan stated that 70-80% of the work required to begin the mine's operation has already been completed, and approximately $250 million is needed for the final stages. According to him, $100 million of this amount has already been raised, and the remaining $150 million is expected to be obtained from several local banks.
The mine's launch is scheduled for October 2025. According to Aloyan, Lydian Armenia plans to produce about 210,000 ounces of gold annually, which, at current global prices, would result in revenues of $500 million and taxes amounting to $120 million.
On December 27, 2024, an agreement was signed at the Ministry of Economy of the Republic of Armenia, under which Lydian Armenia transferred 12.5% of its shares as a gift to the Armenian government.
About the Amulsar deposit
The Amulsar gold deposit is the second-largest gold deposit in Armenia by reserves, 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, 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 the Canadian Osisko Gold Royalties) has faced challenges in fully exploiting the Amulsar mine in recent years due to protests from environmentalists and residents of nearby areas. These protests stem from concerns that mining operations could lead to the contamination of Jermuk's groundwater and Lake Sevan, potentially causing an environmental disaster.
Protests were held regularly in 2018-2019 and again in 2020, demanding that mining activities be halted.
In August 2021, the Armenian Investigative Committee presented the final expert opinion from Earth link & Advanced Resources Development (ELARD) in connection with the criminal case initiated on July 20, 2018. According to the Investigative Committee, there are no environmental threats from the mine's operation, and any potential risks can be mitigated through appropriate measures.
