ON THRESHOLD OF PROVISION OF EBRD LOAN WORTH 25 MLN USD TO DENO GOLD MINING COMPANY ARMENIAN ECOLOGISTS ENGAGE IN BATTLE AGAIN

ArmInfo
2009-11-19 18:25:00

ArmInfo. On the threshold of provision of EBRD loan worth 25 mln USD to
Deno Gold Mining company, Armenian ecologists engage in battle again.

"Probably, EBRD has no information on the real situation in Kapan,
Syunik region of Armenia, that has been caused by the activities
of Deno Gold Mining. According to ecologists’ assessment, three
communities – Geghanush, Syunik and Shahumyan are on the brink
of ecological and social disaster",- Head of the EcoLur public
organization Inga Zarafyan said to ArmInfo correspondent. She recalled
that as a result of emergency releases in 2006-2007, land and garden
plots were contaminated in the village of Syunik, the cattle died,
children displayed strong allergic reactions to the extent that
their skin sloughed off their hands. At the same time, the State
Environmental Inspection responded to this situation only after the
racket in mass media.

Shahumyan gold-polymetallic deposit being developed by DGM is situated
in the territory of Shahumyan community. "This is a highly dangerous
zone: the residents’ houses break down of explosions. The developers
have not practically left the upper layer above the drifts despite to
the exploitation rules, and the land is caving in and making craters",-
Zarafyan stressed. She added that the main waste flow was closed
after construction of Geghanush tailing dump on the common lands on
Geghanush community. However, there is practically no buffer zone here,
and those having land plots near the tailing dump have been deprived
of the opportunity to receive incomes. Besides 19 ha private plots,
the hazel-wood growing on the slopes of the gorge filled with waste
ceased bearing fruit. "Furthermore, there are still "tails" left open
by the company. The river Norashenik flows nearby, and its banks are
fortified with the "tails",- Zarafyan said.

Thus, as it was pointed out, the activity of Deno Gold Mining fails
to meet the ecological and social policy announced by the European
Bank for Reconstruction and Development as it violates the Armenian
legislation and human rights, as well as the rights to life and
health. "We think that there are all grounds for EBRD monitoring,
particularly, in the light of the loan provision negotiations between
the bank and the company. This may make the company be more attentive
to implementation of its commitments and observance of laws of the
country where it operates",- Zarafyan said.

According to her, the EBRD decision on provision of the 25 USD
mln mid-term loan should be open for the public. "Suppression of
documents concerning the loan for Deno Gold Mining from the EBRD
website does not contribute to transparency of the company’s activity
under the loan agreement and does not contribute to transparency
of EBRD activity either",- Zarafyan said. She pointed out that on
November 24 she will participate in an international conference in
London and raise there all the issues concerning DGM activity. "The
company violates the environmental legislation, including the Land
Code, Water Code, Forestry Code, and Natural Resources Code. For their
part, the supervising bodies, including Inspection of the Armenian
Nature protection Ministry and Sanitary Inspection of Health Ministry
lay down no necessary demands on legislation observance before the
company",- Zarafyan said.