When Can Amulsar Mine Operations Begin: Clarification from EDB

The operations of the Amulsar mine could begin in spring 2025. Denis Ilyin, the senior executive director of the Eurasian Development Bank (EDB), stated this during an interview with Sputnik Armenia and the Arminfo news agency at the annual meeting and business forum of the EDB in Almaty.

According to Ilyin, there are three main points regarding the implementation of the project. The first concerns environmental issues. Specifically, the bank had set environmental requirements that Lydian Armenia needed to accept. As a result, the parties have reached an agreement.

“There were environmental requirements from the very beginning. We received the consultant's conclusion and transmitted it to the client. They were considering it for quite some time, and now we are entering the final phase. I hope that by July we will finally complete the project work in terms of environmental aspects,” Ilyin said.

The second point relates to the relationship with the government. Considering that the state is involved as a shareholder, the bank has discussed certain guarantees from the Armenian authorities to support the project.

“In any case, there are political risks in every country, including Armenia. This week we sent the final version of our document to the government. I hope we will have it finalized next week,” Ilyin noted, clarifying that the document is currently under review by the Ministry of Finance of Armenia.

The third point, according to him, regards the issuance of loan documents. There were certain financing questions among the current investors in the project. This concerns American funds and a new operational partner.

In this regard, the project had “taken a pause”. The shareholders have determined the volume of financing by restructuring old debts.

“They promised to send the final version next week so that I can understand what kind of structure we are working with,” Ilyin said. He also emphasized that the EDB is investing $75-100 million in the project.

If everything goes according to plan, all issues should be resolved by August. Furthermore, according to Ilyin, the project is not stagnating on site. Current and new investors are spending funds on preparatory works. Ilyin did not disclose the name of the new investor, stating that he has not yet received clear information from Lydian Armenia. At the same time, he stressed that he is aware of the structures behind this investor, which are known in the industry and have carried out projects in Africa and Southeast Asia.

If all these projects are implemented, preparations for the mine will begin in autumn, with direct mining operations starting in spring 2025. It was previously reported that a new environmental expert examination has been ordered for the mine.

In February 2023, a memorandum was signed among the Armenian government, the international company Lydian, and the Eurasian Development Bank regarding the operation of the Amulsar gold mine (managed by Lydian Armenia, a subsidiary of Lydian). According to the memorandum, it is planned to attract $250 million in investment for this purpose, of which $100 million will come from the EDB (in the form of a loan). Lydian Armenia has also transferred 12.5% of its shares to the Armenian government (the decision to accept these as state property was made at a meeting on January 18).