ArmInfo. The Eurasian Development Bank (EDB) no longer plans to participate in the Amulsar gold deposit development project, as announced by Yaroslav Mandron, EDB Management Board Deputy Chairman, in Almaty on December 18.
"As for the Amulsar project, I want to make it clear that we do not plan to participate. We have seen the conclusion, but for us, our priority lies elsewhere. Our focus is on integration projects-projects where there are connections between all our participants. Aside from certain outcomes of the environmental study, we do not see any indicative components. Therefore, we are not currently considering this project as a project we are willing to finance. If the situation changes in the future, we may reconsider," the Deputy Chairman of the Management Board of the EDB said.
Recall, since late 2018, the Amulsar gold mine has been blocked by environmental activists. The government has been unable to resolve the issue of resuming construction at the mine, and work there was forced to suspend. In February 2023, the Government of Armenia, Lydian Armenia CJSC (the mine operator), and the Eurasian Development Bank (EDB) signed a memorandum of understanding, marking the restart of the program. As stated by then-Minister of Economy Vahan Kerobyan, the memorandum would secure $150 million, with $100 million as a loan from the EDB, and $50 million backed by a local bank. An additional $100 million was supposed to be invested by shareholders outside the agreement. It was noted that as part of the deal, the Armenian Government would receive 12.5% of the company's shares, without any payments, but instead it would insure the transaction against certain risks.
In early 2024, over 130 public organizations and residents of Jermuk spoke out against the potential operation of Amulsar. Their joint statement emphasized that by accepting a 12.5% stake in Lydian Armenia, the company developing the mine, the Armenian government had ignored democratic values and the rights of local communities. It also noted that leading international and national experts and scientists had confirmed the environmental, social, and economic risks and hazards posed by the Amulsar project, calling into question the EIA report on the mine development project submitted by the RA Ministry of Nature Protection. Furthermore, it noted that the mine's negative impact on water resources-Lake Sevan, the Arpa and Vorotan river basins, and the Spandaryan and Kechut reservoirs-had been ignored. During a press conference in 2024, Armenian Minister of Economy Gevorg Papoyan announced that mine operations would begin in the fourth quarter of 2025, which is precisely what happened. Construction work has begun at the mine. It was noted at the time that $250 million was needed to launch the project. The company raised $100 million, and the remaining $150 million was raised from local banks under government guarantees.
It is worth noting that the total cost of the Amulsar project is $370 million. The mine life is 10 years and 4 months, with an average annual gold production rate of 200,000 ounces. The deposit holds the second- largest reserves in Armenia. According to the company, the deposit contains approximately 73,733 kg of gold with an average grade of 0.78 grams per ton, as well as 294,367 tons of silver with an average grade of 9.29 grams per ton. It is located in the southeast of the country, 13 km from the resort town of Jermuk, in the interfluve of the Arpa and Vorotan rivers.
