European Bank for Reconstruction and Development Halts Investments in Amulsar Mine Project

The European Bank for Reconstruction and Development (EBRD) has ceased investments in the controversial gold mine project in Armenia, which is valued at $400 million. This information is stated in a report published on opendemocracy.net.

"For the past two years, the project of Lydian International related to the operation of the Amulsar mine has been blocked by local residents and environmental activists who closed the access to the mine after the 'Velvet Revolution' in 2018. The announcement regarding the suspension of the EBRD investment program follows recent protests at Amulsar," the article states.

It is noted that the London-based development bank has been financing research, drilling, and feasibility studies at Amulsar since 2009, as well as measures initiated by Lydian aimed at mitigating environmental and social impacts. The bank has found itself at the center of public civil group protests and has faced criticism for supporting Lydian.

"The EBRD is obliged to provide the public with an appropriate explanation regarding its position on the project and current developments. The recent provocation by Lydian's security company at Amulsar is just a sign of the damage that continuing these investments will cause to the EBRD's reputation, even as it ceases its equity stake in Lydian International," said Fidanka McGrath, Director of EBRD Policy at CEE Bankwatch Network.