Operations at the long-stalled Amulsar gold mine are expected to resume by the end of 2025, following a $250 million investment, according to Hayk Aloyan, CEO of Lydian Armenia, the company operating the site.
Speaking to reporters, Aloyan confirmed that construction will begin this spring, paving the way for full-scale operations to restart later this year. “This is not about any technical difficulties,” Aloyan said. “The project was nearly 80% completed when it was halted seven years ago. Now it’s time to finally implement it.”
Of the total $250 million investment, $150 million will be secured through local banks, with the remaining $100 million provided by the company. Once operational, Lydian Armenia is expected to become one of the top corporate taxpayers in the country, paying an estimated $120 million in taxes annually—making it the second or third largest taxpayer in Armenia, Aloyan said.
The reopening of the Amulsar mine is anticipated to create 750 direct and approximately 4,000 indirect jobs, offering a significant economic boost to Armenia’s Vayots Dzor and Syunik provinces. In addition to employment, Lydian Armenia has pledged to implement social development programs in three local communities near the mine.
“We will ensure long-term economic improvement in the region for the next 20 to 25 years,” Aloyan said, emphasizing the company’s commitment to local development and corporate responsibility.
Environmental concerns have surrounded the Amulsar project for years, with repeated protests and blockades stalling its progress. However, Aloyan asserted that Lydian Armenia has undergone extensive environmental scrutiny.
“Our Environmental Impact Assessment (EIA) is the best in the region,” he stated, noting that the project has been subjected to seven years of inspections and audits. “We are spending substantial sums on environmental monitoring to ensure we remain on a strict ecological path.”
The company also pledged to maintain transparency by regularly inviting local NGOs, environmental activists, and government officials to conduct independent inspections. Additionally, international partners are expected to visit Armenia this year to demonstrate the mine’s safety protocols to the public.
Employee safety will also be a priority, with Aloyan saying that high safety standards will be implemented across all operations.
The Armenian government has voiced strong support for the project. In January, Minister of Economy Gevorg Papoyan described the mine’s reopening as “vital” for Armenia’s economic growth. Minister of Environment Hakob Simidyan also confirmed that Lydian Armenia possesses all the required permits to legally operate the Amulsar mine.
The Amulsar gold mine has been one of the country’s most controversial development projects in recent years. Operated by Lydian Armenia, a subsidiary of the now-defunct UK-based Lydian International, the project was initially launched in the late 2000s and was poised to become one of the largest foreign direct investments in Armenia’s mining sector.
However, the mine quickly became a flashpoint for environmental and civil society concerns. Local residents, environmentalists, and activists expressed strong opposition to the project, fearing that mining operations would threaten Armenia’s water resources, biodiversity, and tourism in the nearby spa town of Jermuk. The mine is situated near the source of the Arpa and Vorotan rivers and not far from Lake Sevan, Armenia’s largest freshwater reserve.
In 2018, following Armenia’s Velvet Revolution and the rise of a reformist government, public protests against Amulsar intensified. Activists blocked access roads to the mine for over two years, effectively halting construction and prompting a lengthy legal and environmental review process. The situation became emblematic of post-revolution civil engagement and the growing environmental movement in the country.
In response to the public outcry, the government commissioned an international environmental audit by Lebanese firm ELARD, which concluded in 2019 that mining at Amulsar posed manageable risks if strict environmental standards were followed.
Now, with full governmental support and updated environmental commitments, Lydian Armenia aims to revive the project—though whether it will gain public trust remains to be seen.
