MINEX Forum

Tag: community development

  • Celebrating 30 Years of Kazakhstan-France Joint Venture at KATCO

    Celebrating 30 Years of Kazakhstan-France Joint Venture at KATCO

    On 2 September, the Kazakhstan-France joint venture celebrated its 30th anniversary at the Shanyrak basecamp in Sozak District, Turkestan Region. The event was attended by key figures including Zulfukhar Zholdassov, First Deputy Akim of Turkestan Region, and Sylvain Guiaugue, the French Ambassador to Kazakhstan, alongside various stakeholders from the mining industry. The ceremony highlighted the significant milestones achieved by KATCO, which has transformed from a site with minimal infrastructure to a leading uranium producer, reaching a production capacity of 4,000 tonnes per year by 2026.

    Since its inception, KATCO has made substantial contributions to the national economy, paying KZT 460 billion into the budget and placing KZT 836 billion in orders with local suppliers. The company has also invested KZT 8.2 billion in over 500 social projects within the Turkestan Region and Sozak District, showcasing its commitment to community development. The workforce, comprising 1,363 employees—99% of whom are Kazakh citizens—has maintained an impressive safety record, working over two years without a lost-time injury.

    During the anniversary celebration, long-serving employees were recognised with state and regional awards, alongside KATCO Certificates of Honour. The event concluded with a screening of an anniversary film and a gathering of teams working on-site, reflecting on the journey of the company and the partnerships that have been crucial to its success since 1996. The ceremony served not only as a commemoration of past achievements but also as a reaffirmation of KATCO’s ongoing commitment to safety, community engagement, and sustainable mining practices.

  • Amulsar Gold Mine Project in Armenia Secures Over $750 Million Investment and Community Development Agreement

    Amulsar Gold Mine Project in Armenia Secures Over $750 Million Investment and Community Development Agreement

    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.

  • Lydian Armenia Signs $7 Million Community Development Agreement for Amulsar Mine

    Lydian Armenia Signs $7 Million Community Development Agreement for Amulsar Mine

    Lydian Armenia has formalised a Community Development Agreement with the Armenian government, represented by the Ministry of Economy, and the surrounding communities of Jermuk, Vayk, and Sisian, in relation to the Amulsar mine. Signed on August 31, the agreement stipulates that Lydian Armenia will allocate $7 million annually for community development during both the construction and production phases of the mine. Should the average gold price exceed $3,550 per ounce during production, this annual contribution will rise to $9 million.

    The funding will be distributed through a two-pillar model, with 70% allocated to the communities based on a formula that considers factors such as population, land area used by the Amulsar project, and proximity to mine infrastructure. Each affected settlement, including Jermuk, Kechut, Gndevaz, Saravan, and Gorayk, is guaranteed to receive at least 20% of the total funds designated for its respective community.

    The remaining 30% of the annual contribution will be awarded on a competitive basis to support community development projects. This mechanism is designed to promote initiatives that yield significant, measurable long-term benefits for a broader range of residents. Importantly, the funds will not be directly transferred to community budgets; instead, they will be managed by the Amulsar Community Development Foundation, which Lydian Armenia has established.

    Communities will propose eligible development projects to the foundation, which will then provide funding upon approval. The foundation’s board, comprising four representatives from Lydian Armenia and one from each of the Jermuk, Vayk, and Sisian communities, will have final authority over project approvals.

    The agreement also outlines procedures for oversight, reporting, and auditing of the funds, aiming to ensure transparent and effective management. Lydian Armenia has stated that this agreement creates a predictable and institutionalised framework for the company’s long-term support of the communities surrounding the Amulsar mine, ensuring that the economic benefits of the project translate into tangible development opportunities for local residents.