The Eurasian Development Bank (EDB) may reconsider financing the development of Armenia's Amulsar gold deposit if clarity emerges regarding the project’s status, said Nikolai Podguzov, Chairman of the EDB’s Management Board, during the bank’s year-end press conference on December 5, 2024.
According to Podguzov, the EDB previously expressed interest in the project and was prepared to participate in its implementation, but the financing application was withdrawn. He noted that the bank’s re-engagement would depend on resolving several issues at the Armenian level, particularly those related to environmental assessments.
“We were considering this project and were ready to work on it, but at this time, the financing application has been withdrawn. Once clarity is achieved, the bank will determine its position,” emphasized Podguzov.
Earlier, BMG reported that the Armenian government is seeking alternative financing sources through local banks under state guarantees. Efforts to secure funding for the Amulsar gold mine development through the EDB have encountered setbacks.
Currently, the government has initiated an audit of Lydian Armenia, the company managing the project, before providing state guarantees.
Despite the funding challenges, Armenia’s Minister of Economy Gevorg Papoyan recently expressed optimism that construction at the site would begin in the first quarter of 2025, with mining operations starting in the fourth quarter of the same year.
The Amulsar gold deposit, operated by Lydian Armenia (a subsidiary of international company Lydian International), is located on the border of Armenia’s Vayots Dzor and Syunik provinces, in the northwestern section of the Zangezur mountain range. The project has been stalled due to protests by environmental activists and local residents. The Armenian government anticipates that restarting the project will contribute to improving the country's economic performance, as projected for the upcoming year.
