Armenia’s Economy Minister Gevorg Papoyan visited the Amulsar gold mine on October 10 to review Lydian Armenia’s mining project — a $750 million investment initiative aimed at boosting the country’s industrial growth and job creation.
According to the Economy Ministry, $250 million of the total investment is designated for completing construction and launching mining operations. During his visit, Papoyan, accompanied by Lydian Armenia Director Hayk Aloyan, inspected the residential complex for 960 employees, was briefed on their living conditions, and reviewed the mine’s infrastructure and ongoing construction, which involves more than ten companies.
“The Amulsar project is one of the largest investment initiatives in our country. It simultaneously promotes industrial development, creates new jobs, and ensures significant tax revenues for the state budget,” said the minister.
The mine’s verified reserves include 73 tons of gold and 294 tons of silver, with production yielding doré, a gold-silver alloy. Based on current gold market prices, annual taxes and royalties during the production phase are expected to exceed $120 million. As of October 1, the project employed 890 workers, with more than 1,000 additional jobs expected as operations expand.
In addition, Lydian Armenia has pledged annual payments of $7 million to communities surrounding Amulsar, including Vayk, Sisian, and Jermuk. Papoyan was joined on the visit by Vayots Dzor Governor Vahagn Arsenyan, Deputy Minister of Economy Edgar Zakaryan, and Gnel Sanosyan, the government’s representative on the Lydian Armenia Board of Directors.
In September, around ten Armenian NGOs sent an open letter to the European Bank for Reconstruction and Development (EBRD), expressing concern over the financing of the Amulsar project. Ahead of the COP17 conference, the NGOs also addressed Armenia’s President, government, and parliament, criticizing what they described as contradictory environmental policies.
In December 2024, Lydian Armenia transferred 12.5% of its shares to the Armenian government at no cost.
About the Amulsar Deposit
The Amulsar deposit, located between the Vayots Dzor and Syunik provinces in southeastern Armenia, is the country’s second-largest pure gold deposit, containing approximately 31 million tons of ore and 40 tons of gold. It lies on the northern and northwestern ridges of the Zangezur Mountains at altitudes ranging from 2,500 to 2,988 meters above sea level, 13 kilometers from the resort town of Jermuk, between the Arpa and Vorotan rivers.
Lydian Armenia, founded in 2005 and a subsidiary of Lydian Canada Ventures, which is owned by the American Orion Mine Finance and Canadian Osisko Gold Royalties. According to Armenia’s State Register of Legal Entities, the beneficial owners of Lydian Armenia are Hayk Aloyan, Michael David Saynor Spenser, Jeffrey Edmund Couch, and Victor Flores.
The company has faced operational challenges due to environmental protests. Local activists expressed concerns that mining could contaminate groundwater in Jermuk and Lake Sevan, potentially leading to an environmental catastrophe. Demonstrations demanding the cessation of operations took place in 2018–2019 and again in 2020. Operations at Amulsar had been halted for several years before resuming under new agreements and environmental compliance reviews.
On June 6, 2023, executives of Lydian Armenia and Allied Gold Corp met with Deputy Prime Minister Mher Grigoryan to discuss the joint implementation of the Amulsar project, construction timelines, expected launch dates, and ongoing public-private cooperation.
In August 2021, Armenia’s Investigative Committee released the final expert opinion from the Lebanese company Earthlink & Advanced Resources Development (ELARD) regarding the criminal case initiated on July 20, 2018. The Committee concluded that there are no environmental hazards associated with the mine’s operations and that any potential risks can be managed if proper safety measures are implemented.
