YEREVAN, August 22. /ARKA/. A clear assessment of Amulsar Gold Mine's impacts on Jermuk water resources and Lake Sevan may become the key factor for a decision to resume the mine's operation, Armenian Vice-premier Tigran Avinyan wrote Wednesday on his Facebook page.
"According to the results of the expert analysis of ELARD Company, fears that have long been voiced by environmentalists over Sevan and Jermuk water resources are not realistic," Avinyan says. "Additional measures are being proposed to mitigate risks, and these measures have already been taken."
The vice-premier stressed that the government intends to set the highest bar for all mining facilities in tune with the highest environmental criteria.
In his words, the change of power in Armenia in 2018 has brought no consensus on Amulsar in the society, while $400 million have already been invested in it in accordance with the law. There is the risk of cut of 4,500 jobs.
"The opening of the mine implies additional investments totaling $130 million," Avinyan wrote. "Extra annual inflow into the government budget will amount to $45-50 million. The entire output, which will amount to $250 million, will be exported, and this is estimated to have a 10% impact on the export."
Speaking about risks the vice-premier found it necessary to take into account possible arbitration. In his words, the government has already taken into consideration all possible legal arguments, positions and opportunities.
"Nevertheless, regardless of how well the government is prepared for arbitration process, it can't be predicted completely, and large reimbursements can't be ruled out, and we understand that these financial resources are not made out of thin air – they are taken from taxpayers."
As the biggest risk that can't be gauged, Avinyan pointed out the future of Armenia's investment environment.
"If we want to create a country where both inside and outside investors are protected, we shouldn't hobble any company's activity. Otherwise, there is a threat of turning into a country avoided by investors," he said.
In February, 2019 the Armenian government decided to allocate USD 396,900 from its reserve fund to Earth Link & Advanced Resources Development (ELARD) for carrying out a comprehensive expert examination of the Amulsar project. The mine's operation was ceased.
Lydian is a gold developer focused on construction at its 100%-owned Amulsar Gold Project, located in south-central Armenia. However, illegal blockades have prevented access to Amulsar since late June 2018. Amulsar is expected to be a large-scale, low-cost operation with production targeted to average approximately 225,000 ounces annually over an initial 10-year mine life.
Estimated mineral resources contain 3.5 million measured and indicated gold ounces and 1.3 million inferred gold ounces as outlined in the Q1 2017 Technical Report. Existing mineral resources beyond current reserves and open extensions provide opportunities to improve average annual production and extend the mine life. Lydian is committed to good international industry practices in all aspects of its operations including production, sustainability, and corporate social responsibility. -0-