Former Prime Minister's Advisor Plans to Extend Gold Mine Exploitation Rights

Former Prime Minister's advisor Hamlet Hovsepian, along with his family and Russian partners, is looking to extend the exploitation rights for the Meghrasar gold mine by an additional 6 years and 3 months. This information was reported by Hetq.

The article notes, "The exploitation rights for the Meghrasar gold mine were granted to AT-Metals LLC in 2015 for a period of 7.5 years. That means it expired this June. The company submitted a project for assessment to the Ministry of Environment, which envisions the mine being operated by three open pits in succession.

The annual productivity of the open pits is expected to be 50,000 tons of assorted ore (45,333 tons based on extractable reserves). The pit areas are located 5 km northeast from the villages of Lichk and Tashtun. The extracted ore will be transported to a processing plant located 20 km away in Tashtun.

The Meghrasar gold mine is the northern flank of the Lichkvaz-Tey gold deposit and adjoins the southwestern flank of the Kajaran mining field. According to the submitted project, the land in the area is primarily used for pasture and hayfields. However, rare and endangered species listed in the Armenian Red Book are also found here. This underscores the importance of a cautious approach in selecting land for industrial use, according to AT-Metals.

In the area, one species of insect listed in the Armenian Red Book has been recorded: the endemic Syunik longhorn beetle (Cortodera kafanica). Several narrow-range beetles, which may have some environmental significance, are also present; they are endemics of Armenia, the South Caucasus, and the Caucasian ecoregion. The studied areas recorded one endemic species from Armenia, five from the South Caucasus, and eight from the Caucasus.

According to the project, the exploited mining area does not intersect with ecologically sensitive territories such as wildlife reserves, national parks, or other areas of international importance. The nearest specially protected area is the Arevik National Park, located 14 km from the mine.

The area of land affected by mining operations is expected to be 73 hectares. The land use during construction and operation is planned on a rental basis for a period of 7.5 years. No land from Armenia’s forest fund is being reclaimed.

The impact of the company’s economic activities on land resources is estimated to amount to 518.587 million AMD annually, while the monetary economic damage is assessed at 555 million AMD per year.

AT-Metals provided data on the volumes of mined ore for the environmental impact assessment project from 2015 to 2021. Notably, there was no ore extraction in 2016 and 2018. Over the five-year period, the company mined 233 kg of gold and 525 kg of silver.

Based on the declaration of ultimate beneficial owners, Hamlet Hovsepian holds a 15% stake in AT-Metals LLC, another 15% is held by his eldest son Vardan Hovsepian, and 19.8% is controlled by his younger son Karen Hovsepian. Thus, the Hovsepian family collectively owns 49.8% of the company. Russian citizens Sergey Muylin holds a 25.61% stake, and his brother Gennadi Muylin owns 19%."