Mining operations at the Amulsar gold deposit in Armenia are anticipated to begin in September-October 2025, according to Armenian Economy Minister Gevorg Papoyan.
The minister confirmed that a high-quality audit had deemed the project both feasible and profitable. He stated, “We believe the financing issue will be resolved shortly. With $500 million already invested, an additional $100 million will be contributed by the company, and the remaining $150 million will be financed by our financial institutions.”
Construction work is scheduled to start in the spring, with the aim to kick off mining operations by autumn, providing a significant boost to Armenia’s economy and industry.
Project Progress and Financial Investments
Hayk Aloyan, CEO of Lydian Armenia, the company holding the license for the Amulsar gold deposit, revealed that 70-80% of the required work to commence operations has already been completed. An additional $250 million is needed to finalise the project.
Lydian Armenia plans to produce approximately 210,000 ounces of gold annually, potentially generating $500 million in revenue and $120 million in taxes at current global prices.
In a significant development, on 27 December 2024, Lydian Armenia signed an agreement to transfer 12.5% of its shares to the Armenian government.
About the Amulsar Deposit
The Amulsar gold deposit, Armenia’s second-largest pure gold deposit, contains around 31 million tons of ore and 40 tons of pure gold. Located 13 km from the resort town of Jermuk, between the Arpa and Vorotan rivers, the mine has faced delays due to environmental protests.
Concerns have been raised about the potential contamination of groundwater in Jermuk and Lake Sevan. Despite protests in 2018-2019 and 2020, the Investigative Committee of Armenia reported in August 2021 that there are no significant environmental threats from the mine’s operation if appropriate measures are taken.
In conclusion, the imminent start of mining at Amulsar promises to be a pivotal moment for Armenia’s economy and industrial sector.
