Economy minister warns against “unfair” Amulsar decision jeopardizing Armenia’s investment future

YEREVAN, AUGUST 28, ARMENPRESS. Minister of Economy Tigran Khachatryan believes that an “unfair” solution to the Amulsar project issue can jeopardize the future of investments in Armenia.

On August 19th, Armenian Prime Minister Nikol Pashinyan announced that the Government intends to allow Lydian International to continue the Amulsar project. The decision was based on the conclusion of an environmental audit conducted by ELARD. Pashinyan emphasized that the project will be operated strictly in adherence to high environmental standards.

But on August 21 the PM requested the Ministry of Environment to study the conclusion and determine whether or not another Environmental Impact Assessment is required before a final decision is made.

The Amulsar Project is a gold mining project by Lydian Armenia, the Armenian subsidiary of Lydian International.

In an interview with ARMENPRESS Khachatryan spoke about the gold mine’s potential exploitation, its economic advantages, environmental risks and their mitigation actions and other issues.

Mr. Minister, there’s a lot of talk about the environmental risks of the exploitation of the Amulsar gold mine. The part of the society which is opposing the mine’s operation claim that it can inflict damage to Lake Sevan and Jermuk waters. After all, if indeed these harmful impacts exist, to what extent is it expedient to operate the mine?

During all these months the Government has stated as a principled position that during its [potential] activities the project shouldn’t have the kind of environmental negative impacts which is in unacceptable limits from the society’s perspective. The discussion’s conclusion hints that this kind of an impact doesn’t exist. Experts, in turn, are reassuring that the preventive actions which the company must carry out during operations rule out any negative omissions into the environment.

If nevertheless the mine won’t be operated, to what extent will this harm Armenia’s international reputation?

If an unfair decision is made it will impact the reputation. The most important issue is the issue of fairness, whether the Government of Armenia and the society are treating fairly those investors who have made decisions in conditions of having certain rights. During the previous year we have explained everyone the motives we had for waiting for a final conclusion, and it was the concern that the project has the kind of environmental risks in the existence of which we would have to explain everyone that we can’t continue that way. The conclusion states that these kinds of risks don’t exist. Meaning, I still believe that we have been able to manage also the international opinion on the important grounds that in the end we will make a fair decision. When it is recorded as a fact that the opinion on risks not being present is a final one, I think we will overcome the temporary tension which existed among international investors. We must be coherent in order for the confidence which exists for the Armenian Government’s decisions and economic future to remain high.

How much will be the economic income from the potential operations of the Amulsar gold mine?

Lydian has estimated that in the limits of the confirmed reserves it can work for ten years, and it can reprocess around 10 million tons of ore each year. These are the quantitative figures which have been acknowledged by authorities and based on which the respective exploitation permits were granted. Meaning, we have activities estimated for around 10 years, exploitation of 10 million tons of ore each year, nearly 250 million dollars of products calculated by 1200 dollars and exports. If gold prices remain the same as today, then as a result of this mine’s exploitation nearly 300 million dollars worth of products will be created yearly.

Asked about the workplaces that the operations will create, the minister said the potential exploitation of the mine will open 750 direct jobs, and 4 times more indirect workplaces which will be directly or indirectly linked with servicing the production. “There will be nearly 3800 jobs totally”.

Edited and translated by Stepan Kocharyan