Lydian Armenia to provide $9 million annually to gold mine’s nearby communities as parties sign development deal

A Community Development Agreement has been signed within the framework of the Amulsar Gold Mine Project between the mine operator, Lydian Armenia CJSC, the Government of Armenia, represented by the Ministry of Economy, and the communities of Jermuk, Vayk and Sisian.

The agreement was signed at the Ministry of Economy headquarters in Yerevan.

Minister of Economy of Armenia Gevorg Papoyan said that the nearby communities of Jermuk, Sisian and Vayk are the first beneficiaries of the agreement.

“The provisions of the agreement were subject to lengthy discussions because, in fact, we are talking about more than $100 million in the long term, which Lydian Armenia will provide to the affected communities, allocating $9 million each year. The mine will start operating in September, and we will have the first gold bar that month. In this way, mining will begin at full capacity, and we will see its results,” Papoyan said.

He described it as a fairly large investment project. The state and the private sector have already invested more than $750 million, he said.

“According to estimates, we will also have more than $100 million in tax revenues every year. If the international price of gold remains within the current range, it will be good for us, and if it rises, even better. The essence of this project is that the state will not only receive revenues from Lydian Armenia in the form of taxes, but the state is also a shareholder, owning 12.5 percent of the shares. Therefore, part of the profit will go to the state, and the company will also allocate $9 million to the communities of Armenia so that they can implement subsidy and other expenditures,” the Minister said.

According to Papoyan, co-financed subsidies will be provided, for example, for the construction of roads and water pipelines, but the communities can also implement projects that do not entail subsidy assistance.

“In that case, we will have a council consisting of seven partners, including the heads of the Jermuk, Vayk and Sisian communities. Together, they will discuss and decide which project will be implemented. The projects will, of course, change the face of the communities. This is also about additional funds, which will likewise be directed toward community development, and if some of them are also implemented with subsidy assistance, the funds will be doubled. In a few years, our communities will look completely different, which will happen thanks to major investments,” Papoyan said.

Hayk Aloyan, founder and CEO of Lydian Armenia, in turn noted that the signed document has legal force, and its drafting required lengthy work.

“This is an important investment in our communities, which are our partners and are directly affected. We have worked closely with the communities to date, which will remain an ongoing commitment for us. Starting in 2027, we will allocate $9 million to the communities, taking into account the price of gold. The document also contains an obligation according to which the settlements located in the immediate vicinity of the mine will receive 20 percent of the aforementioned amount, which is very important. This cooperation will continue, and the agreement has been concluded until the end of the mine’s operation,” Aloyan said.

He said that the Ministry of Economy of Armenia has played a significant role throughout the entire process. The Government’s partners also made considerable efforts to ensure that the agreement was properly structured and that the communities benefited from this process.