The Amulsar gold mine project in Armenia has attracted significant investment, exceeding $750 million from both public and private sectors. This was announced by Armenian Minister of Economy Gevorg Papoyan during the signing ceremony of a Community Development Agreement, which will see Lydian Armenia CJSC invest over $100 million in the long-term development of local communities. The agreement was signed between the Armenian government, represented by the Ministry of Economy, Lydian Armenia, and the enlarged communities of Jermuk, Vayk, and Sisian.
Minister Papoyan highlighted that the mine is set to commence operations in September, with the first gold bar expected to be produced shortly thereafter. The project is anticipated to generate annual tax revenues exceeding $100 million, with the state holding a 12.5% share in Lydian Armenia, thus benefiting from the profits. The funds allocated for community development will be used for essential infrastructure projects, including roads and water pipelines, and could be doubled through subsidised co-financing.
Lydian Armenia has committed to allocating up to $9 million annually for community development, depending on gold prices. The company will establish a Community Development Fund, through which local communities can propose projects for funding. The distribution of funds will be based on a formula that considers the population and proximity of the communities to the mine.
The Amulsar gold mine, located near Jermuk, is the second-largest pure gold mine in Armenia, with confirmed reserves of 73 tons of gold and 294 tons of silver. Despite its potential, the project has faced opposition from environmental activists concerned about potential groundwater pollution. However, a recent expert opinion concluded that the environmental risks can be managed effectively.
The signing ceremony was attended by various government officials and community leaders, marking a significant step towards the mine’s operational phase and the anticipated economic benefits for the region. The project is expected to run until 2039, providing a long-term economic boost to the surrounding communities.
