The Armenian government has approved $150 million in loan guarantees to support Lydian Canada Ventures, a U.S.-Canadian company, in restarting operations at the Amulsar gold mine. The mine, which was set to begin open-pit mining in late 2018, was halted due to environmental protestsfollowing Armenia’s Velvet Revolution.
Lydian had initially planned to produce 210,000 ounces of gold annually (worth around $550 millionat current prices) but faced road blockades from protesters who feared ecological damage. The company, however, maintained that it would use modern technology to minimize environmental risks.
Despite the protests, the Armenian government did not revoke Lydian’s mining licenses but also avoided forcibly removing the blockade. By then, the company had already invested $460 million in the project.
In December, Lydian announced it was close to securing $150 million in loans from Armenian banks to finish construction. The government has now backed these loans, citing the project’s economic importance, estimating it could add 1–1.5% to Armenia’s annual GDP growth.
A government statement highlighted Lydian’s commitment to “best international standards” for environmental safety. Under Armenian law, the loan guarantee cannot exceed 20% of a company’s net assets, requiring Lydian to undergo an independent audit within six months.
Lydian, headquartered in Canada, aims to start gold production at Amulsar by the fourth quarter of this year, creating 700 jobs and generating up to $100 million in annual tax revenue.
The Amulsar deposit, Armenia’s second-largest pure gold reserve, holds 31 million tons of ore and 40 tons of gold. Located 13 km from Jermuk, it sits between the Arpa and Vorotan rivers.
