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The Amulsar gold mine, the first gold mine to be commissioned in Armenia since independence, launched its operations over the weekend, marking a new phase in one of Armenia’s largest investment projects.
A ceremony marking the occasion was held near the mine on October 10, attended by Cabinet members led by Prime Minister Nikol Pashinyan.
During the visit, Lydian Armenia mine operators showcased the gold-casting process to Pashinyan and other visiting officials.
The project is being implemented within the framework of the strategic partnership between Lydian Armenia and the Government of Armenia.
Hayk Aloyan, founder and CEO of Lydian Armenia, told reporters that the company holds a license to operate the Amulsar mine for 12 years.
“We believe this is a project that will last approximately 40 years. I want to clarify that the product will be exported for refining, since what we produce today is an alloy of gold and silver. We have exported it to Switzerland,” he said.
According to Aloyan, the company currently employs 1,500 people, approximately 30% of whom are local residents. Around 4,000 people are involved in the process overall. He also noted, without disclosing figures, that average salaries are higher than those typically offered in the mining sector.
In response to a question from an Armenpress correspondent, Aloyan elaborated that the company plans to produce approximately $100 million worth of output in 2026, provided that regular production is maintained during the final three months of the year. In subsequent years, production is expected to reach approximately $860–900 million, depending on the global price of gold.
Asked who had cast the first gold bar, Aloyan appeared surprised and, seemingly immersed in pleasant memories, admitted that he had cast it himself. The process had gone smoothly.
“There was no risk. Our partners carried out the entire process. I took part, too, and cast the first gold with my own hands. That was on September 16. I was very emotional. I am a geologist. I have been working in this profession for around 30 years, but I had never cast gold in my life. It was extremely interesting. It is truly moving—it is like the moment your own child is born,” Aloyan said.
Gnel Sanosyan, the government’s representative on the board of directors of Lydian Armenia, drew particular attention to the project’s social and environmental aspects.
“Very recently, Lydian Armenia, the government and the three communities near the mine clarified the entire scope of work and the program in accordance with the agreement reached. It was established that $7–9 million would be allocated to the communities annually. The program’s methodology, areas of focus and working arrangements were also clarified,” Sanosyan said.
According to him, Lydian Armenia will also implement a project to establish a national park, allocating $5 million for that purpose.
Speaking to reporters, Sanosyan also said that, in terms of the technologies and a number of innovations being introduced, the project represents an entirely new approach to mining in Armenia and could have a substantial social and economic impact.
The former Minister of Territorial Administration and Infrastructure also said that no discussions had been held about increasing the Armenian government’s stake in Lydian Armenia.
Addressing environmental risks, Sanosyan said:
“During the construction phase, it was important to ensure that the project was implemented fully in accordance with the plan. Compliance with the established standards was monitored by numerous companies, as well as highly qualified international experts. The way the work has been carried out shows that we will not face such problems,” he said.
Minister of Economy Gevorg Papoyan said that the project’s implementation marked Armenia’s entry into a new phase of economic development, as Amulsar is bringing nearly the entire production chain into operation. Lydian Armenia has invested approximately $750 million in the Amulsar project overall, of which $150 million was provided by Ameriabank on the basis of a government budget guarantee.
“This is a very important example of cooperation between the state and the private sector. Once the mine reaches the operational phase, annual gold production of more than 210,000 ounces is planned. According to our calculations, $130 million will be paid into the state budget in taxes, duties and royalties. In addition, the government holds a 12.5% stake in the project, which, in our assessment, could increase Armenia’s gross domestic product by at least 1.5% annually. Lydian Armenia will provide substantial support to our communities so that their residents can directly benefit from this process. As a result, not only will thousands of jobs be created, but a new path of economic development will open up for this region, particularly for Vayk, Jermuk and Sisian,” Papoyan said.
Minister of Territorial Administration and Infrastructure Davit Khudatyan also believes that the operation of the Amulsar deposit will significantly transform communities in the neighboring areas of Vayots Dzor and Syunik provinces.
“I want to emphasize that this is an excellent opportunity for our partners at Amulsar, those responsible for the subsoil use sector and each of us to show and prove that mining and tourism can operate side by side without interfering with one another or damaging nature. I am confident that this is exactly what we will achieve through joint efforts,” he said.
Prime Minister Nikol Pashinyan said he considers the operation of the Amulsar deposit a success story and believes that environmental concerns surrounding it have been dispelled.
“You all know that the Amulsar project has manifested itself in various ways, and I believe we should also analyze the path we have taken in order to develop procedures for future investment projects. One of the most important tasks, I believe, is to improve public understanding and awareness of all these issues.
“I believe the decisive decision and agreement that enabled us to break through the impasse was, first of all, providing answers to all the questions related to the environmental sector. On the other hand, it was very important to go through that process and become convinced, because I want to remind you that concerns and warnings were voiced, including about the contamination of Lake Sevan and other issues. And we are here today because we are convinced that all those risks simply do not exist. We should also acknowledge that, for any developed country, this kind of mining—one that is environmentally and socially responsible—is a key engine of development,” he said.
Addressing the project’s social responsibility component, the prime minister highlighted the substantial support that Lydian Armenia would provide to local communities. Pashinyan considers the government’s 12.5% stake in the project a way of ensuring additional public participation in it.
“I want to remind you that, in the preceding period, we also made amendments to the Tax Code and changed certain royalty mechanisms, linking them to some extent to international prices for gold, copper and other metals. This also generates additional revenue for the state budget.
“Our economy has grown by an average of 7.9% annually over the past five years, and, based on the results for 2025, Armenia’s gross domestic product has increased by 53% since 2018. We will summarize the 2026 figures and report them later. And now we have a huge new investment project that will drive further growth in the country’s GDP,” the prime minister said.
Economist Suren Parsyan, speaking to Armenpress, assessed the expected economic impact of the mine’s operation, describing Amulsar as the largest investment project in Armenia’s recent history.
“This will have a significant economic impact not only locally but also at the national level. The fact alone that turnover or exports will amount to around $930 million indicates that we will have an industrial giant comparable to the Zangezur Copper Molybdenum Combine. In other words, we can say that our economy will have its second-largest mining company, with a direct impact of around 2% on the economy and a further indirect impact of 1.5–2%. Given that this will become a systemically important company, it will serve as a client for more than 200 small and medium-sized businesses, acting as a driving force for the entire sector and regional business,” Parsyan said.
The economist believes the project will also have a significant social impact, noting that approximately 1,000 well-paid jobs are expected to be created, while the number of indirect jobs could reach 4,000–6,000.
“Salaries here are quite high, averaging AMD 900,000 or more. This is a very high figure, even exceeding the average salary at other mining companies in Armenia. Vayots Dzor is one of Armenia’s poorer provinces. The poverty rate here is around 25%, higher than the national average. With the operation of Amulsar and the implementation of its social programs, approximately $8–9 million will be allocated to the affected communities. The poverty rate could decrease significantly, by around two to three times. In Vayots Dzor, where the population is small and there are serious employment challenges, this could help address a major problem over the long term.”
Parsyan believes that by implementing a project of this scale, Armenia can send investors a signal that it continues to operate according to international rules and remains ready to undertake new projects.