Lydian Armenia has obtained all the necessary permissions to operate the Amulsar gold mine. This was announced by Armenia’s Minister of Environment, Akop Simidyan, during a press conference on January 10. Simidyan highlighted that the company possesses all required environmental impact assessments, including those conducted twice, and sees no legal obstacles to commencing operations.
The construction of the Amulsar gold mine had been blocked by environmental activists since late 2018. In March 2022, Armenia’s then Minister of Economy, Vahan Kerobyan, mentioned that work on the mine could resume, referencing the ministry’s action plan that included resolving the “Amulsar issue.”
In February 2023, the Armenian government, Lydian Armenia, and the Eurasian Development Bank (EDB) signed a memorandum of understanding to restart the Amulsar project. The agreement involved securing $150 million, with $100 million in credit from the EDB and $50 million from a local bank, and an additional $100 million from the company’s shareholders. These funds are intended to complete the construction and purchase necessary equipment. As part of the deal, the Armenian government received 12.5% of Lydian Armenia’s shares without payment, in exchange for managing certain risks.
Despite this, over 130 public organizations and residents of Jermuk, a town near the mine, protested against its potential operation in early 2024. They argued that the government’s acceptance of the 12.5% shares ignored democratic values and local community rights.
Recently, Armenia’s new Minister of Economy, Gevorg Papoyan, stated in November 2024 that the mine’s operation might start in the fourth quarter of 2025, pending the securing of $250 million, with $100 million already found by the company and the remaining $150 million to be raised from local banks. However, the EDB has suspended its financing for unknown reasons.
The total cost of the Amulsar project is approximately $400 million, with an expected operation period of 10.5 years and an annual gold production of around 200,000 ounces. The mine, located 13 kilometers from the resort town of Jermuk, is the second-largest gold deposit in Armenia, containing about 73,733 kilograms of gold and 294,367 tons of silver.
