EBRD representative believes government should decide on Amulsar  project

ArmInfo. Regarding the situation around Lydian Armnia, the government of Armenia must take its decision. This was stated by Dmitri Gvindadze, Head of the  Armenian office of the European Bank for Reconstruction and  Development (EBRD) at a press conference on January 30.

''So much has been said about the company that I don't know what to  add. EBRD in this program has a small share. Before we take part in a  particular project, we approach with all severity, presenting the  most stringent requirements, including environmental, social ones,  "Gvindadze said.

As the head of the Armenian office of EBRD noted, the company in  whose capital the bank participates must meet all the requirements of  the Bank, and the program itself must comply with the specified  criteria for the Bank to agree to participate. "This applies to all  our projects," he emphasized.

To recall, Lydian Armenia is a subsidiary of the British offshore  Lydian International. The total cost of the Amulsar project is $ 370  million. The field's life was envisaged at 10 years and 4 months,  with an average of 200 thousand ounces of gold planned to be mined  annually.

Amulsar field is the second largest reserve in Armenia. According to  the company, the deposit contains about 73733 kg of gold with an  average grade of 0.78 g per ton, as well as 294.367 tons of silver  with an average grade of 9.29 g per ton. It is located in the  south-east of the country, 13 km from the spa town of Jermuk, between  the rivers Arpa and Vorotan.

It should be noted that despite the assurances of the Lydian company  that about $ 300 million has already been invested in the development  project of the Amulsar gold deposit, environmentalists do not share  the government's enthusiasm about the attractiveness of the mine  exploitation plan. Environmentalists fear that the exploitation of  the field, during which sodium cyanide will be used, may lead to the  oxidation of water in rivers. Contaminated waters will become  unsuitable for drinking and irrigation and may cause irreparable harm  to the mineral springs of Jermuk and the ecosystem of Sevan.

Since the end of 2018, the road to the field has been blocked by  environmental activists. The company in December last year announced  that it was starting the delisting of its shares on the Toronto Stock  Exchange, where they were quoted, and in fact announced a default.