Will Amulsar Be Operated? Court Grants Lydian Armenia's Request

According to a statement by Lydian International Limited, on February 26, 2020, the Administrative Court of Armenia accepted Lydian Armenia's claim and invalidated 8 out of the 10 points mentioned in the inspection act dated August 24, 2018, issued by the Ministry of Environment and Natural Resources.

It is noteworthy that during inspections of the Amulsar project in 2018, according to the inspection authorities, Lydian Armenia allegedly violated 10 provisions of Armenian legislation, including the illegal extraction of mineral resources during the construction phase of the Amulsar project (construction materials).

Lydian contested these points and argued that the head of the inspection authority had been biased in those decisions, which led to the Armenian Investigative Committee opening a criminal case against Lydian Armenia in August 2018 based on the findings of the inspection authorities.

According to the Administrative Court's ruling, Lydian Armenia's construction activities in the Amulsar project area are not considered illegal mineral extraction. As Lydian has consistently claimed, there has never been a proper basis for initiating a criminal case.

Lydian's interim president and CEO, Edward Sellers, stated on this occasion: “Lydian welcomes the impartial decision of the Administrative Court. This is yet another ruling confirming the compliance of Lydian's activities with the law by the Armenian judiciary system. In previous rulings, Armenian courts also established that Lydian's lawful right to operate has been unlawfully obstructed.”

Lydian has suffered significant financial losses due to illegal actions taken against the project, in which the Armenian government did not intervene. The actions and inaction of the government continue to adversely affect all of Lydian's stakeholders, including hundreds of employees, contractors, and suppliers, as well as thousands of shareholders and investors. We call on the Armenian government to adhere to the ruling of the Administrative Court and restore Lydian's lawful right to operate.

The Administrative Court also invalidated the decision No. 30/1 issued by the former head of the inspection authority, Arthur Grigoryan, rejecting Lydian Armenia's administrative appeal. The court found that prior to his appointment as the head of the inspection authority, Arthur Grigoryan was actively involved in actions against the Amulsar project, raising reasonable doubts about his impartiality when he rejected Lydian's administrative appeal.

The two points that the Administrative Court upheld pertain to improving documentation and annual statistical reports. The judicial decision can be appealed to the Court of Appeals within one month.