How Much Money Will the Exploitation of the Amulsar Mine Bring to the State Budget? Kerobyan Explains

With the exploitation of the Amulsar mine, annual revenues of 30-40 billion drams will flow into the Republic of Armenia's state budget. This was stated by the Minister of Economy, Vahan Kerobyan.

It is noteworthy that today the government of Armenia, 'Lydian Armenia,' and the Eurasian Development Bank signed a tripartite memorandum of understanding regarding the renewed exploitation of the Amulsar mine.

The minister is confident that the operation of Amulsar will significantly contribute to the growth of the Armenian budget. He estimates that taxes collected from Amulsar will increase revenues from the mining sector by 20 percent annually.

'But even before taxes, the economic impact that will arise from this work—the hundreds of job opportunities, collaboration with other companies, and the new atmosphere—construction not only in the mine area but also in surrounding communities will have significant economic influence,' the minister asserts.

At the same time, Kerobyan noted that the mining industry is not a priority sector for the Armenian government, and they are not trying to develop the economy by exploiting natural resources, yet it remains an important branch for the economy.

It should be mentioned that in September 2021, the state received 15% of shares in the Zangezur Copper-Molybdenum Combine from 'GeoProMining.' In March 2022, an additional 6.875% of shares was donated.

Recall that Amulsar is the second-largest gold deposit in Armenia. It is located at the border of Vayots Dzor and Syunik regions, north of the Zangezur mountain range, at elevations of 2500-2988 meters.

The mine is managed by 'Lydian Armenia' LLC, a subsidiary of the international company 'Lydian International.' The mine has not been operational for a long time. The Lebanese company 'Elard' conducted an environmental risk assessment during the exploitation of the Amulsar mine. Company representatives reviewed the environmental impact assessment prepared by 'Lydian Armenia' back in 2016 and expressed concerns about potential risks. At the same time, representatives of Armenia's Investigative Committee stated that the risks are manageable.