Armenia’s banking sector is prepared to fund the Amulsar gold mining project after the Eurasian Development Bank (EDB) withdrew from financing it. Minister of Economy Gevorg Papoyan shared this during a press briefing on December 12 following a government meeting.
According to Papoyan, Armenian commercial banks have accumulated sufficient capital to consider allocating $150 million for the project. To assess the associated risks, the Ministry of Economy commissioned a study from an auditing firm. The results, expected within a week, will guide banks, the government, and the mine’s operators in making a final decision.
As previously reported by BMG, the EDB declined to finance the Amulsar project due to unresolved issues, primarily related to environmental assessments. EDB Chairman Nikolay Podguzov stated that the bank might reconsider if the Armenian government resolves these issues.
Despite this, the Armenian government plans to move forward with the project by involving local banks under state guarantees. Construction is anticipated to begin in the first quarter of 2025, with mining operations starting in the fourth quarter.
Located at the border of Armenia’s Vayots Dzor and Syunik provinces, the Amulsar gold deposit has faced years of delays due to protests from environmental activists and local residents. The government believes the successful relaunch of the project will significantly contribute to Armenia’s forecasted economic growth in the coming year.
