Deputy Minister: Application of EITI standards will solve many  problems of mining industry in Armenia

ArmInfo.The mining industry in Armenia today has faced many problems, and participation in the Extractive Industries Transparency Initiative (EITI) will solve many  issues, Acting Deputy Minister of Energy Infrastructures and Natural  Resources of Armenia Vardan Gevorgyan told ArmInfo correspondent on  December 5, on the sidelines of a meeting of the multilateral group  on the implementation of EITI standards in the country.

According to him, at present, 27 companies have been granted the right to develop  deposits, however, in fact, only 7 commercial structures operate the  mines. There are several reasons for this - both financial and  environmental. The solution of these and other problems is directly  related to the application of EITI standards, which, ultimately, will  lead to openness and transparency of the mining sector with the  involvement of representatives of civil society.

Answering to ArmInfo's question that one of the active initiators of  Armenia's accession to EITI is the former US Ambassador to Armenia  Richard Mills, who at the same time actively promoted the project for  the development of the Amulsar field, Vardan Gevorgyan stressed that  the country's participation in the EITI would solve many issues. The  field of the mining industry, which the RA government has recognized  as a priority since 2016, will become more transparent and  accountable, and in this context the application of the Initiative  standards is of great importance for the country. "As for Amulsar, we  all know about the problems existing there. I think that the final  solution will be achived after the studies being conducted by an  independent organization. A final decision will be made as a result  of these studies," the Acting Minister stressed

Earlier ArmInfo informed that Lydian Armenia company had to suspend  activities in Amulsar gold deposit because of blockade of roads by a  group of nature protection activists and received temporary access to  the Amulsar gold mine for preparatory work and preservation of  technological and mobile equipment for the winter period.  ''In view  of the illegal blockade of roads leading to the territory  of the  Amulsar deposit, since the end of June this year the company  has  been deprived of opportunity to work. Nevertheless, we continue  to  work with the government to find solutions to the current  situation,  and we also evaluate the company's financial, strategic  and legal  alternatives. During this period, the preparation of  equipment for  the winter period is extremely important. This is a positive step, as  we are working to ensure continuous access to the  territory within  which the project is being carried out, " Joao  Carrelo, President  and CEO of Lydian said.

By the government's decision over the next two to three months,   international authoritative experts will publish the results of the   environmental impact assessment of the project. In case of positive   expertise, the project will continue.  To recall, Lydian Armenia is a  subsidiary of the British Lydian   International, whose shareholders  are large international   institutional investors from the United  States, Britain, a number of  European countries and EBRD. The  Amulsar project is the largest  industrial project in Armenia for the  development of the Amulsar gold  deposit at  a total cost of $ 370  million. In August 2016, the project of the construction and  development of the field was  launched.  Preliminary work has been   carried out since 2006. The life  of the  Amulsar deposit will be 10  years and 4 months, an annual  average of  200,000 ounces of gold  (about 10 million tons of ore) is  planned. The company's shares are  quoted on the Toronto Stock Exchange. Amulsar deposit is the second  largest in Armenia.

To recall, on March 9, 2017, in the capital of Colombia, Bogota, the  application of Armenia for joining the EITI was approved. Thus, the  Republic became the 52nd country using the global EITI standard. This  will lead to transparency in the mining sector and increased  accountability to the public. These factors are essential in the  context of improving the country's business environment. Good  management of natural resources can be beneficial for citizens, and  EITI is an appropriate tool for achieving this goal. Thanks to EITI,  quite a lot of information will be available to all beneficiaries.  EITI creates a platform in Armenia for cooperation between the  government, mining companies and civil society. According to the  roadmap, Armenia should publish its first EITI report within 18  months from the date of its recognition as a candidate country.