Lydian Expresses Deep Disappointment to the Armenian Government

Lydian has expressed deep disappointment regarding the misleading comments made by ELARD during discussions with the Government, and calls on the Armenian Government to reveal which mining companies funded the campaign against Amulsar. This was stated in a press release by Lydian Company.

The text of the statement is as follows:

“Lydian has today expressed profound disappointment concerning comments made by Earth Link & Advanced Resources Development (ELARD) during the video conference organized by the Government of Armenia on August 29, regarding Lydian's Amulsar project and its environmental studies. During the conference, ELARD repeatedly claimed that there were 'gaps', 'flaws', and 'lack of quality' in the information provided to them as part of the examination. While Lydian initially stated that ELARD’s involvement by the Investigative Committee was neither necessary nor legally justified, the Company has cooperated openly with both the Investigative Committee and EALRD during this examination and report process.

Lydian and its advisors have provided the Investigative Committee and ELARD with all available and relevant information over three months, including 300 documents totaling more than 20,000 pages, reflecting over 8 years of research on all environmental aspects of Amulsar. The Investigative Committee has repeatedly stated that Lydian fully cooperated with the investigation. After reviewing the expert report, the Investigative Committee announced that there were no grounds for actions against Lydian.

Lydian's advisory firms include Wardell Armstrong International, Golder Associates, Environmental Resources Management, Global Resource Engineering, Treweek Environmental Consultants, and other reputable companies. They have contributed to and ensured that Lydian meets or, in some cases, exceeds the most stringent and leading international environmental and sustainability standards, within the context of the Environmental and Social Impact Assessment (ESIA), to fulfill the criteria required for investments from the World Bank’s International Finance Corporation and the European Bank for Reconstruction and Development.

Moreover, Lydian's ESIA has been subject to multiple reviews by the independent international auditing firm Knight Piesold and assessed as compliant with all applicable international standards. (see link)

While Lydian welcomed ELARD's precise conclusion regarding the absence of impact on Lake Sevan and Jermuk, ELARD's behavior during the conference, unfortunately, reflects more the organization's inability to review and analyze the more than 20,000 pages of complex and detailed studies provided by leading international experts than revealing anything about Lydian or Amulsar.

ELARD's comments regarding the information available to them during yesterday's conference were more a 'wish list' of what they would like to see. When asked directly which international standards Lydian's studies did not meet, ELARD could not provide any references. Instead of accepting this, ELARD continued to present their 'absence of anything' in our studies as 'gaps' and 'flaws'. ELARD did not accept that what they wished to read had no relation to best international practices and should not have been included in the ESIA or studies for Lydian’s permits.

Lydian has been unlawfully deprived of its right to enter and operate in the Amulsar area since June 2018. The Armenian Government has repeatedly stated that the restoration of the Company's right to operate depends on the results of the audit conducted by EALRD. While Lydian is confident that there is no legal basis for linking the Company’s legal right to operate to any further audits, Lydian has fully cooperated over the last year in the frameworks of three consecutive examinations.

No other mining company in Armenia has been subjected to such examinations. The Armenian Government has publicly stated that Lydian and the Amulsar project are victims of a campaign funded by competing mining companies. The Armenian society has been drawn into an endless discussion over an examination that initially lacks any legal basis to question Lydian's right to operate. When will the Armenian Government reveal the competing mining companies conducting this campaign, how much has been paid for this campaign, and who has been compensated?”

It should be noted that a video conference was organized by the government on August 29 with the experts from ELARD regarding comments on Lydian's Amulsar project and its environmental studies.