AmCham: situation around Amulsar sends negative signals to potential investors
02.09.2019,
18:15
In a letter addressed to Armenian Prime Minister Nikol Pashinyan the American Chamber of Commerce in Armenia (AmCham) warns that the delays in the Amulsar Project can make Armenia an unattractive country for investments.
YEREVAN, September 2. /ARKA/. In a letter addressed to Armenian Prime Minister Nikol Pashinyan the American Chamber of Commerce in Armenia (AmCham) warns that the delays in the Amulsar Project can make Armenia an unattractive country for investments.
“Honorable Mr. Prime Minister,” the statement reads. “We are writing you on behalf of the American Chamber of Commerce in Armenia (AmCham) regarding the long-lasting issue around one of our member companies Lydian Armenia CJSC Amulsar project.
“AmCham is a leading business association founded in Armenia in 2000, and currently represents the interests of more than 140 small, medium and large companies operating in almost all sectors of the Armenian economy. Our mission is to promote the local and foreign investments in Armenia and to advocate for fostering a more favorable business climate, as we believe that fair and equitable treatment of investments are of outmost importance not only for local Armenian and foreign companies, we represent, but also for the economy and well-being of Armenia. This genuine belief has prompted AmCham to release 2 statements during the last 13 months regarding the Lydian Armenia Amulsar project.
“AmCham truly recognizes the importance of professional and impartial audits in the mining sector, still, regrets that Lydian’s Amulsar project has been the only project so far that was pressured to undergo 3 consecutive audits while the roads to the project remain illegally blocked for over a year now. This is despite the fact that Lydian’s Amulsar project has been deemed compliant to IFC and EBRD international highest standards on the environmental and social management.
“We regret that even after the 3rd audit, and after your recognition of the high standards Lydian adheres to, Lydian’s access to its Amulsar project has not been restored, and a possible need for yet another study on the Environmental Impact Assessment is being discussed. While we share the environmental concerns of the society and strongly believe that businesses should comply with sustainable development standards, we also believe that fair and equal treatment of businesses should exclude a selective approach and all the requirements imposed by the State should be evenly and fairly applicable to all the industry players. This is especially important amidst your public statement that the campaign against Lydian was organized and financed by certain business interests of certain parties. This is a matter of outmost concern and we hope that these claims will be duly investigated.
“Honorable Mr. Prime Minister, AmCham is not only concerned about the unfair treatment of its member, one of the biggest investors in Armenia, but as a leading business organization, we are also concerned about the negative impact of the issue around Amulsar project for about a year. It sends negative signals to the potential investors and makes Armenia an unattractive country for investments. While the State is making efforts to attract investments to Armenia, potential investors are, at the same time, alerted that foreign investing companies in Armenia are not protected and treated fairly.
“We are convinced that further delays around Lydian Armenia’s Amulsar project will deepen the issue and can go endlessly having further negative consequences for the business climate and, eventually, ruin the attractiveness of the country for investments. Therefore, we urge the Government of Armenia to act upon for a quick and fair resolution of the issue.
“We share the Governments vision that Armenia should thrive and have a developing economy, where the principle of the rule of law will apply to all the investors doing business for the benefit of Armenia and provide equal and fair opportunities to all the businesses.”
The development of the Amulsar project was halted in 2018 June after environmental groups and local residents set up illegal blockades preventing access to the mine. They argue that the project would pollute the Jermuk mineral water springs and Armenia's largest Lake Sevan. Police have failed to remove the protestors.
In July 2018, bowing to the pressure of Lydian Armenia and environmental activists Armenia’s Investigative Committee launched an inquiry to examine claims of willful concealment of environmental pollution data regarding the mine. The Lebanese consulting firm ELARD was contracted as part of this investigation to review the results of the previous two environmental assessment studies on the mining site.
On August 15 the Toronto-based Lydian International Limited announced that the Special Investigative Committee of Armenia (ICA) released the ELARD report on the environmental audit.
In a statement, Lydian quoted Hayk Grigoryan, the head of ICA, as saying that the investigative body had analyzed the information and findings provided by the international audit report and found there were no grounds for criminal prosecution and continuation of criminal proceedings against the company.
Lydian Armenia was founded in 2005, and all 100% shares in it are owned by Lydian International. The Amulsar mine program is the first project of the company in Armenia. The Amulsar gold deposit is the second largest deposit in Armenia in terms of gold reserves and is said to contain about 31 million tons of ore and 40 tons of pure gold.
Armenian local environmentalists and residents of nearby villagers have been protesting against the development of the mine for years, claiming that the mining activities would endanger the region’s water resources and the local population’s health. . --0-
“Honorable Mr. Prime Minister,” the statement reads. “We are writing you on behalf of the American Chamber of Commerce in Armenia (AmCham) regarding the long-lasting issue around one of our member companies Lydian Armenia CJSC Amulsar project.
“AmCham is a leading business association founded in Armenia in 2000, and currently represents the interests of more than 140 small, medium and large companies operating in almost all sectors of the Armenian economy. Our mission is to promote the local and foreign investments in Armenia and to advocate for fostering a more favorable business climate, as we believe that fair and equitable treatment of investments are of outmost importance not only for local Armenian and foreign companies, we represent, but also for the economy and well-being of Armenia. This genuine belief has prompted AmCham to release 2 statements during the last 13 months regarding the Lydian Armenia Amulsar project.
“AmCham truly recognizes the importance of professional and impartial audits in the mining sector, still, regrets that Lydian’s Amulsar project has been the only project so far that was pressured to undergo 3 consecutive audits while the roads to the project remain illegally blocked for over a year now. This is despite the fact that Lydian’s Amulsar project has been deemed compliant to IFC and EBRD international highest standards on the environmental and social management.
“We regret that even after the 3rd audit, and after your recognition of the high standards Lydian adheres to, Lydian’s access to its Amulsar project has not been restored, and a possible need for yet another study on the Environmental Impact Assessment is being discussed. While we share the environmental concerns of the society and strongly believe that businesses should comply with sustainable development standards, we also believe that fair and equal treatment of businesses should exclude a selective approach and all the requirements imposed by the State should be evenly and fairly applicable to all the industry players. This is especially important amidst your public statement that the campaign against Lydian was organized and financed by certain business interests of certain parties. This is a matter of outmost concern and we hope that these claims will be duly investigated.
“Honorable Mr. Prime Minister, AmCham is not only concerned about the unfair treatment of its member, one of the biggest investors in Armenia, but as a leading business organization, we are also concerned about the negative impact of the issue around Amulsar project for about a year. It sends negative signals to the potential investors and makes Armenia an unattractive country for investments. While the State is making efforts to attract investments to Armenia, potential investors are, at the same time, alerted that foreign investing companies in Armenia are not protected and treated fairly.
“We are convinced that further delays around Lydian Armenia’s Amulsar project will deepen the issue and can go endlessly having further negative consequences for the business climate and, eventually, ruin the attractiveness of the country for investments. Therefore, we urge the Government of Armenia to act upon for a quick and fair resolution of the issue.
“We share the Governments vision that Armenia should thrive and have a developing economy, where the principle of the rule of law will apply to all the investors doing business for the benefit of Armenia and provide equal and fair opportunities to all the businesses.”
The development of the Amulsar project was halted in 2018 June after environmental groups and local residents set up illegal blockades preventing access to the mine. They argue that the project would pollute the Jermuk mineral water springs and Armenia's largest Lake Sevan. Police have failed to remove the protestors.
In July 2018, bowing to the pressure of Lydian Armenia and environmental activists Armenia’s Investigative Committee launched an inquiry to examine claims of willful concealment of environmental pollution data regarding the mine. The Lebanese consulting firm ELARD was contracted as part of this investigation to review the results of the previous two environmental assessment studies on the mining site.
On August 15 the Toronto-based Lydian International Limited announced that the Special Investigative Committee of Armenia (ICA) released the ELARD report on the environmental audit.
In a statement, Lydian quoted Hayk Grigoryan, the head of ICA, as saying that the investigative body had analyzed the information and findings provided by the international audit report and found there were no grounds for criminal prosecution and continuation of criminal proceedings against the company.
The audit focused on the “wilful concealing of information about pollution of the environment by officials related to the exploitation of the Amulsar gold mine” and was started in March this year.
Armenian local environmentalists and residents of nearby villagers have been protesting against the development of the mine for years, claiming that the mining activities would endanger the region’s water resources and the local population’s health. . --0-
