The Armenian government has acquired a 12.5% stake in Lydian Armenia, the company holding the rights to operate the Amulsar gold mine. After years of delays caused by protests from environmentalists and local residents, the project is set to launch by the end of 2025, creating around 5,000 jobs and generating significant tax revenues for the state budget.
One of Armenia's largest and most debated mining projects is nearing its final stages of preparation. Despite longstanding protests over potential environmental impacts, Lydian Armenia CEO Hayk Aloyan and Minister of Economy Gevorg Papoyan announced at a joint press conference that the company had voluntarily transferred 12.5% of its shares to the government.
According to Aloyan, this initiative reflects the company’s commitment to sharing responsibility for the project’s implementation with the state. He reported that 70-80% of the preparatory work has already been completed.
To complete the project, an additional $250 million is required, of which $100 million has already been secured. The remaining $150 million is expected to come from local banks. While specific funding sources were not disclosed during the press conference, previous statements from Armenia’s economy and finance ministers hinted at the possibility of state-backed guarantees for these loans, following the failure to secure financing from the Eurasian Development Bank.
As per Aloyan's timeline, construction at the mine will begin in the first quarter of 2025, with gold production expected to commence in the fourth quarter. The mine is projected to yield approximately 210,000 ounces of gold annually, generating $500 million in annual revenue and around $120 million in taxes at current global gold prices.
Aloyan also highlighted the project’s social significance, noting that approximately 1,000 jobs will be created directly at the mine, with an additional 4,000-5,000 positions in supporting industries. While the initial operational timeline for the mine is 12 years, Aloyan estimates that reserves could extend the project’s lifespan to 25 years.
Addressing previous concerns, Minister of Economy Gevorg Papoyan emphasized that all environmental and related issues have been thoroughly addressed over the years. "Signing this agreement indicates that the risks have either been neutralized or are sufficiently manageable," Papoyan stated.
The minister also announced plans for the government to introduce new technologies aimed at minimizing environmental harm across the mining sector. These efforts will extend beyond Lydian Armenia, which already employs modern environmental standards, to other mining enterprises, including the Zangezur Copper-Molybdenum Combine, where the government also holds shares.
The Amulsar deposit, located at the border of the Vayots Dzor and Syunik provinces, has faced long-standing opposition from environmentalists and local communities. The successful relaunch of the project is expected to significantly contribute to Armenia’s projected economic growth in the coming year, according to government officials.
