Author: Raffi Khondkarian

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-

YEREVAN, August 16. /ARKA/. GeoProMining, a diversified international group of mining companies, developing the Sotk gold deposit in Armenian province of Gegharkunik, has urged today local mass media to abandon what it called the 'primitive' practice of seeking a political context when covering the activities of foreign investors in Armenia.

The move comes after some Armenian electronic mass media outlets placed a story titled “Russians treat workers at Sotk gold mine as slaves. Employees sound  alarm.”

'The heartbreaking story about 'slaves' working for Russian exploiters became an occasion for an obviously puff piece story aimed against  GeoPromining Gold company, otherwise how can one explain why journalists  ignore elementary principles of journalism that require  double-checking of facts and an alternative point of view," GeoProMining press service said in a statement.

'GeoProMining officially declares that the facts stated in the story are not only untrue, but are also a pure provocation on the part of those who grossly violated the rules of labor discipline and safety,' the company said.

It said  one of the 'characters' of the story, Karo Melkonyan, who accuses Russians of treating local workers as 'slaves', was caught  July 5 this year red-handed by security officers of the deposit when  trying to steal gold-bearing ore. Security officers asked him to show what he had in his pockets. Instead Melkonyan said he wanted to go to the toilet to get rid of evidence, however, the security  officers reacted according to the instructions and prevented it.

The whole process was filmed on video cameras, the company filed an application with the police and provided law enforcement agencies with all the relevant materials. Karo Mikaelyan asked the company to let him resign instead of being sacked.