The Amulsar gold deposit project is being implemented as part of a strategic partnership between Lidian Armenia and the Armenian government (87.5 per cent of Lidian Armenia’s shares are owned by the international mining company United, with the remaining 12.5 per cent held by the Government of the Republic of Armenia). The company has invested a total of around $750 million in the project, of which $150 million is backed by a state guarantee provided by the government.
According to News.am, the Amulsar deposit is expected to produce around 210,000 ounces of gold annually. According to expert estimates, as a result of the mine’s operation, the taxes and royalties paid annually by Lidian Armenia to the state budget will amount to around $130 million, whilst the positive impact on Armenia’s GDP will be 1.5–2 per cent. The project is expected to create more than 4,000 direct and indirect jobs.
Under the Community Development Agreement concluded between the government, Lidian Armenia and the communities of Jermuk, Vayk and Sisian, it is planned to allocate $7–9 million annually to their socio-economic development programmes throughout the entire period of the deposit’s operation. In addition, the company has committed to allocating $5 million towards the creation of the ‘Jermuk National Park’.
‘Our Project’
According to Prime Minister Nikol Pashinyan, as quoted by Armenpress, it was important for the government to address the issues of public concern and ensure that citizens regard this project as their own: “Let us finally note that the mineral resources, which have today turned into gold before our very eyes, belong to the Republic of Armenia and are the property of the people of the Republic of Armenia. And our most important task was to demonstrate that this wealth will serve the development and prosperity of the Republic of Armenia.”
However, more than 40 civil society organisations, initiatives and citizens of Armenia have condemned the launch of the gold mine, demanding that its operations be halted immediately. The authors of the statement, as quoted by the Aysor.am portal, warn of the risks of pollution to the Arpa and Vorotan rivers, Lake Sevan and the mineral waters of Jermuk, whilst also pointing out shortcomings in the project’s environmental impact assessment and failure to comply with the recommendations of the Bern Convention.
The consequences of potential pollution of these water systems could also affect neighbouring countries, including Azerbaijan, reports 1news.az.
It is noteworthy that the mine was launched on the eve of the 17th Conference of the Parties to the UN Convention on Biological Diversity (COP17), which is due to take place in Yerevan from 19 to 30 October. The country’s authorities will inevitably have to answer difficult questions from environmentalists and international delegates.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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