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Armenia’s mining industry is preparing to reach a new stage of development and export a record US$3 billion worth of minerals in 2027. Ahead of this, representatives of the professional community, state bodies, financial institutions, academia, civil society and other sectors gathered in Tsaghkadzor for the third consecutive annual Mining Armenia Forum, held this year under the theme “From Resources to Opportunities”.
More than 50 leading specialists from Armenia and 14 other countries took part in a wide-ranging programme of presentations and discussions. Under the overarching theme, topics included global transformation, investment and responsible growth; pathways for developing mining in Armenia; financing operations; expanding various forms of cooperation; risks in emerging markets; changes in global mineral supply chains; investment attractiveness; regulatory predictability; environmental protection and public expectations; legal frameworks governing the sector; waste management; cooperation with communities and scientists; and even the introduction of artificial intelligence and digital technologies.
The forum announced the signing of a memorandum of understanding between Armenia’s Ministry of Territorial Administration and Infrastructure and the Union of Miners and Metallurgists of Armenia on cooperation to establish a mining and metallurgy analytical centre. The centre will serve as a joint platform for research, policy analysis and dialogue between the public and private sectors, supporting informed decision-making and the sector’s sustainable development.
Addressing the event, Prime Minister Nikol Pashinyan highlighted the significance of this year’s forum taking place alongside COP17.
“This is another good opportunity to draw our attention to an important issue: bringing Armenia’s mining industry into line with the highest possible standards. Clearly, environmental standards are becoming an increasingly pressing issue in Armenia and everywhere else. I cannot say that we have taken no steps in this direction, but neither can we speak of considering this problem resolved in the foreseeable future. We can clearly state that the sector offers major opportunities but also faces challenges,” he said.
Highlighting mining’s role in Armenia’s economy, Pashinyan stressed the need for an institutional approach to the sector. He also said the Government would like to extend mining production chains in Armenia as far as possible and manufacture high-value products.
“As you know, the Armenian Government holds stakes in several mining companies, but that is not the approach we envisage. Essentially, we have taken individual steps in response to particular circumstances, whereas an institutional approach is very important here. In my view, that means opening up share ownership in the sector. I mean listing companies on stock exchanges. The next issue I consider very important for Armenia’s mining industry—although this is more of an aspiration, as more detailed expert assessments are needed—is that we would like mining production chains in Armenia to be extended as far as possible,” the Prime Minister said.
Other practical steps are also important for the sector’s development. Minister of Territorial Administration and Infrastructure Davit Khudatyan highlighted several of them.
“The steps we have already begun taking to develop the sector will enable us to move forward. We have already started making extensive use of digital tools. In particular, all permits for subsoil use will soon be issued through a unified system using digital processes. Secondly, work to establish a geological service is under way, and by the end of 2027 we will have a service that will enable us to manage and understand the sector’s challenges from a single point,” the minister said.
Speaking to journalists, Vardan Jhanyan, President of the Armenian Mining and Metallurgy Association, highlighted the sector’s significant contribution to the economy while stressing the importance of meeting the highest environmental standards.
“According to our forecasts, the value of the sector’s exports is expected to reach around US$3 billion next year. By comparison, Armenia’s total exports in 2021 amounted to approximately US$2.8 billion. We expect our sector alone to exceed that figure next year. This is due to the operation of the Amulsar mine and rising prices for critical metals such as copper and molybdenum,” he said.
Responding to a question from Armenpress, Jhanyan said building a copper smelter in Armenia was a recurring topic of discussion but was currently not economically viable.
“We have reviewed several studies indicating that the volume of copper mined is still insufficient for a competitive smelter. Armenia would need to produce at least 100,000–150,000 tonnes of copper annually for a smelter to operate competitively,” Jhanyan said.
International experts also see considerable potential for mining development in Armenia.
“People see potential in Armenia. That is good news. Its geological potential is considered a positive factor. It is also good that Armenia is open to new investment and opportunities. The country also has mining traditions and access to personnel, knowledge and skills. One weakness is data quality, because without that, it is very difficult for investors to assess the expected return on investment. There are also issues with the legal framework. As for downstream processing, we have differing views,” said Wael Jaber, Vice President of Mining and Metals Consulting at Wood Mackenzie.
Meanwhile, Suren Parsyan, an associate professor at the Armenian State University of Economics, a Candidate of Economic Sciences and a lawyer, estimated that Armenia’s mining companies generated around AMD470 billion in revenue in the first seven months of this year, an increase of 62 per cent on the previous year.
“Mining accounts for approximately one-third of Armenia’s total exports, with the share already standing at 29.1 per cent in 2026. It will continue to grow, given the problems we face in exporting several other product categories. Around AMD90 billion in taxes has been collected this year, 51.2 per cent more than last year. We forecast record turnover, or revenue, of around AMD800 billion this year. This will undoubtedly also be affected by the dollar exchange rate, which has had a significant impact in recent months.
“We expect approximately 14,500 jobs in the sector this year, with indirect employment around four to five times higher. It is important to note that the sector’s productivity has become the highest in Armenia, even exceeding that of IT. Productivity stands at approximately AMD50 million per employee. Taxes paid by the mining industry this year will account for approximately 5.5–6 per cent of the state budget’s total tax revenue. Mining output is forecast to increase by around AMD1.7 billion this year,” Parsyan said.
Mining industry representatives hope to return to the next forum, scheduled for a year’s time, with changes made, problems resolved and, of course, new achievements and positive results.