Mining at Amulsar gold deposit expected to be launched in late 2025 - Papoyan

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YEREVAN, November 1. /ARКА/. Gold mining at the Amulsar gold deposit may be launched in late 2025, Armenian Economy Minister Gevorg Papoyan said on Thursday./pp

Our efforts are aimed at kicking off the work in early 2025, and by the end of the 4th quarter of that year to start mining and exports, said the minister./pp

He noted that Armenia’s industrial growth is expected to be 3.1% this year and 5.7% in 2025, including due to the start of the deposit development./pp

Amulsar gold mine is Armenia's second–largest gold mine in terms of pure gold reserves. It is located in the southeast of the country, 13 km from Jermuk resort town, between rivers Arpa and Vorotan. The deposit is said to contain about 31 million tons of ore and 40 tons of pure gold./pp

Lydian Armenia (established in 2005, a 100% subsidiary of Lydian Canada Ventures owned by the American Orion Mine Finance and Canada's Osisko Gold Royalties) was until recently unable to develop the Amulsar mine in full due to protests by environmentalists and residents of the neighboring communities./pp

They are concerned that the operation of the mine may lead to the pollution of underground waters of Jermuk and Lake Sevan, causing an environmental disaster. Protests were regularly held there in a href=tel:2018-20192018-2019/a, then again in 2020, demanding that the operations stop./pp

In August 2021, the Investigative Committee of Armenia published the final expert report commissioned to Earth link Advanced Resources Development (ELARD) in the framework of a criminal case initiated on July 20, 2018./pp

According to the Investigative Committee, there are no environmental threats from the operation of the mine, and the likely risks can be controlled if appropriate measures are taken./pp

Under a MoU, signed in February 2023 by the government, the Eurasian Development Bank (EDB), and Lydian Armenia the parties pledged to attract approximately $150 million for the development of the Amulsar gold deposit./pp

The EDB is to provide a loan of $100 million, and a local bank is expected to allocate another $50 million. The Armenian government is to own 12.5% of the company and provide insurance for the transaction against certain risks. br Neighboring communities are to receive $7 million annually in support from the company. -0-/p