By Siranush Adamyan
Armenia officially launched operations at the Amulsar gold mine on October 10, a decade after construction began on a project repeatedly delayed by environmental protests and financing setbacks.
Prime Minister Nikol Pashinyan attended the opening near the spa town of Jermuk. Amulsar is Armenia’s second-largest gold deposit by volume, after Sotk.
Pashinyan said the project would create skilled, well-paid jobs, support nearby communities and generate revenue for roads, schools and other infrastructure. He highlighted the government’s 12.5 percent stake in the operator, Lydian Armenia, as an additional source of public benefit.
“The mineral resources that turned into gold before our eyes today belong to the Republic of Armenia and are the property of its people,” he said.
Pashinyan also said the government had addressed environmental concerns, including the risk of contamination of Lake Sevan, Armenia’s largest freshwater lake. He pointed to the absence of protests at the opening as evidence that those concerns had been resolved.
The government moved to revive the stalled project in February 2023, signing a memorandum of understanding with Lydian and the Kazakhstan-based Eurasian Development Bank for a proposed $250 million financing package. The plan envisaged $100 million from the bank, $50 million from a local bank and another $100 million raised by Lydian. In return, Lydian agreed to transfer a 12.5 percent stake to the Armenian government.
The EDB financing fell through. In November 2024, the bank told CivilNet that Lydian had withdrawn its application and that its assessment procedures had been halted.
The government subsequently approved a state guarantee for borrowing of up to $150 million from banks. Environmental and anti-corruption organizations challenged that decision in court in May 2025, alleging violations of financial and environmental safeguards.
The government formally acquired its stake in December 2024. According to Lydian’s current website, international mining company United has held the remaining 87.5 percent since 2025.
Saturday’s opening comes about 20 years after exploration began near Jermuk in 2006. Construction started in 2016, with production originally expected in 2018. But that year, residents and environmental activists began blocking access roads, bringing development to a halt.
Lydian International entered creditor-protection proceedings in December 2019, and the project was transferred to a new company through restructuring. Efforts to restart it brought further delays. In December 2024, Lydian said full-scale operations would begin in the fourth quarter of 2025, but that target was also missed.
As recently as August, Lydian told CivilNetCheck that gold extraction had not yet begun and construction was in its final stages. The Economy Ministry said full production capacity was expected in the second quarter of 2027.
Responding to Pashinyan’s remarks on Saturday, the Amulsar Without a Mine initiative said there had been no official announcement of the opening. Its members said they learned about the ceremony by chance while traveling to Jermuk that day.
Opponents have long warned that the mine could contaminate surrounding water systems, including those feeding Lake Sevan, and damage Jermuk’s reputation as a spa destination. Concerns have centered on the use of cyanide to extract gold and the risk of acidic drainage from exposed rock. Lydian has maintained that its safeguards would prevent contamination and allow mining and tourism to coexist.
Stories
