ArmInfo.The Eurasian Development Bank is ready to support the project to develop the Amulsar gold mone. On May 15, in Almaty, on the sidelines of a conference of investors-members of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), Chairman of the EDB Nikolai Podguzov said in an interview with journalists, answering a question from ArmInfo.
"We are in the process of forming a package of documents for financing," Podguzov said. At the same time, he added that not everything depends on the Bank in terms of the speed of disbursement of funds.
In turn, EDB Deputy Chairman of the Management Boar Denis Ilyin, in an interview with journalists, touching upon the Amulsar project, noted that traditionally such projects have both positive and not very positive aspects. "The positive one is the impact that its implementation will have on Armenia, primarily from an economic point of view. Since the Government considers it right, the state says it is right, so we got involved>, said the deputy chairman of the board. At the same time, he touched upon the environmental aspects of the project. <This is not to say that a particular mining project is a wonderful thing for the environment, especially if it is open pit mining, as it is supposed to be. Sure, it leaves scars on the ground and nasty enough, but let's admit it, humanity itself doesn't do much good for the environment in every way. Even the construction of any city is a mockery of nature. Therefore, our task is to ensure that this project provides the economic benefits it was supposed to provide, while minimizing the environmental consequences >, Ilyin emphasized, adding that it is of key importance for the Bank. Speaking about the stage at which this whole process is, he noted that the EDB spoke with the client, discussed all aspects, and now the conclusion of the technical consultant's environmental impact assessment is expected. He said that it is important for the Bank to make sure that everything is done correctly, and that is why this conclusion will be carried out under the control of the EDB. <We know who is doing what, and what results we can then expect. If we put our name on the table, then accordingly we must be completely sure that everything there is as required >, said the Deputy Chairman of the EDB Board. He added that by the end of the summer, approximately in August, the results of the conclusion of the examination are expected.
At the same time, Ilyin said that the expertise is being carried out by the Hatch company, which is a technical consultant, and the Bank, in turn, separately also conducts an environmental audit. In this vein, he said that last week there was a big visit of consultants to the site in Jermuk, and they are now waiting for the first results.
"I think that by the end of the summer there will be certainty in terms of the project itself - whether it is moving forward or not," the Bank representative said, adding that if the results of the examination do not satisfy the EDB, they will not implement it. Ilyin added that one of the Armenian banks, which expressed willingness to participate in the project, is also waiting for EDB's actions regarding the project. However, he did not disclose the name of the local bank that will participate in the project.
It should be noted that , on February 21, the Government of the Republic of Armenia, Lydian Armenia CJSC and the Eurasian Development Bank (EDB) signed a memorandum of understanding, which marked the restart of the program for the development of the Amulsar mine. Within the framework of the memorandum, $150 million will be invested, of which $100 million will be EDB loans, $50 million will be provided by a local bank, and an additional $100 million will be invested outside the agreement. Within the framework of the transaction, the Armenian government will receive 12.5% of the company's shares, in exchange for which it will insure the transaction against certain risks.
Since the end of 2018, the Amulsar gold mine has been blocked by environmental activists. Construction work on it had to be suspended. In March 2022, Minister of Economy of Armenia Vahan Kerobyan noted that if nothing interferes, the work of the Amulsar gold mine will be resumed, referring to the department's program of measures, which contains a provision on solving the Amulsar problem. Earlier, before the change of beneficiaries, Lydian Armenia was a subsidiary of the British offshore Lydian International, which placed shares on the Toronto Stock Exchange. Then the company went through the process of delisting. As a result of the restructuring, the full stake in the company was transferred to the newly established Lydian Canada Ventures, owned by the U.S. firm Orion Mine Finance, and the Canadian company Osisko Gold Royalties. The total cost of the Amulsar project is $370 million. The estimated period of operation of the mine is 10 years and 4 months, while it is planned to produce an average of 200 thousand ounces of gold annually. The field is the second largest in Armenia. According to the company, the deposit contains about 73,733 kg of gold with an average grade of 0.78 g per ton, as well as 294,367 tons of silver with an average grade of 9.29 g per ton. It is located in the south- east of the country, 13 km from the resort town of Jermuk, in the interfluve of the Arpa and Vorotan rivers.
