Amulsar Gold Mine to Begin Operations in 2025
The operation of the Amulsar gold mine is set to commence in the fourth quarter of 2025. As a result there will be created approximately 5,000 jobs. This announcement was made by Hayk Aloyan, CEO of “Lydian Armenia,” during a joint press conference with Minister of Economy Vahan Papoyan. The exploitation rights for the Amulsar gold mine were granted to “Lydian Armenia” based on legal and economic justifications. Recently, on December 27, the company donated 12.5% of its shares to the government.
According to Aloyan, 70-80% of the preparatory work for mine operation has already been completed. About $250 million is required for the preparation phase, of which $100 million has already been raised, with the remaining $150 million expected to be secured from Armenian banks.
The company announced that the mine contains approximately 70 tons of gold reserves. Preliminary data indicates that the Amulsar mine will produce about 210,000 ounces of gold annually, generating a total revenue of $500 million at current global prices. Accordingly, the initial operational period of the mine is projected to last 12 years, but considering the estimated reserves, a 25-year lifespan is possible.
The issue of the mine’s operation has been a topic of debate for nearly a decade. In 2018, a group of environmentalists filed a lawsuit to halt the mining project. During the press conference, Papoyan emphasized that the government’s support for the project confirms that all risks have either been mitigated or are manageable.
However, environmentalists argue that operating the mine could harm Armenia’s water resources, particularly Lake Sevan, as the underground water systems in the Amulsar region are interconnected with the lake. Toxic substances or heavy metals could potentially leak into the groundwater as a result of mining activities.