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In 2012, the mining company Lydian International Limited identified the geological complex Amulsar, located on the border of Vayots Dzor and Syunik provinces of Armenia, as the nation’s largest gold source. Since then, the mine has been attracting the attention of not only numerous investors, but also activists and environmentalists from all over the world. 

On Saturday February 17th, 2018 a EVS volunteer from Helsinki Citizens’ Assembly Vanadzor, organized a movie screening of “Amulsar: State of indifference”, as well as a short discussion following the documentary. The documental film, which was prepared by Public Diplomacy NGO, talks primarily about the environmental consequences, such as water contamination and leaking chemicals that the implementation of the mining operation would have on Armenia. In addition, it also focuses on the large indifference of politicians, civil society and communities towards the project, despite its major impact on the entire country and its population. It addresses both aspects on a profound level and encourages viewers to engage in the issue. The discussion following the screening, was especially exploring the possible reasons behind this indifference as well as potential approaches on how to ameliorate the situation. The overall aim of the event was to raise more awareness about the high environmental risks of the project, as well as to encourage others to take action against the mining in Amulsar.

About Lydian International Limited

The British company Lydian International Limited, based in St. Helier Jersey, engages in the exploration and development of mineral properties in the Caucasus region, with the gold mine Amulsar, being its primary target. Through its subsidiary Lydian Armenia CJSC, previously known as Geoteam CJSC, it has established first mining and smelting facilities for the extraction of 70 tons of gold, in 2016, after years of debates regarding legal and financial issues were eventually resolved and a permission of the Armenian government to further the project was obtained. In 2014, the company received the mining right and the environmental permit to proceed with the project, but it took until 2016 to obtain all necessary financial support. The actual mining process is planned to commence within the year 2018 and the profit is estimated at an amount of 3 billion dollars.

The Amulsar Gold Mine

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The Amulsar Mountain contains a high percentage of gold in comparison to other minerals and metals. These substances are dormant, as long as the natural upper layer of the geological complex is kept intact. For the extraction of gold, this protection layer will be removed, which will trigger irreversible chemical processes and could lead to potential dangerous chemical formations, which have not been scientifically assessed.  The top layer (barren rocks) will be removed first. Following this, the ore will be crushed and transported to the cyanide heap leaching pad, where the gold will be extracted from the ore.
Up to 3.3 million Dollars have been distributed to the nearby communities such as Gndevaz, Saravan and Gorayk, for renting adjacent areas needed for the entire project implementation. Furthermore, social development programs for villagers took place and financial payments were distributed to farmers, in exchange for giving up their farmland, which was classified an area of necessity for the mining operation.
While a majority of villagers is thankful for the investments of Amulsar into their communities, few are worried about the detrimental affects the project could have on their lives and those of future generations.

Environmental Risks

While Lydian International states to work in compliance with environmental standards, independent research findings have revealed serious issues with the environmental aspect of the Gold Mine Mission. According to the report “Amulsar Gold Project: Overview of Concerns with the Amulsar Gold Project, Potential Consequences, and Recommendations” conducted by Blue Minerals Consultancy of Australia, Buka Environmental of the United States, and Clear Coast Consulting of Canada the mining operation comes along with a high risk of long term, adverse effects on the environment. The water and contaminated fluids running downward from the mine into various other water systems are the worst impact that is currently being predicted.

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The pollution of groundwater, river streams, springs and reservoirs would not only affect adjacent areas but would spread all over Armenia, as the Kechut Reservoir, being a large water supply for the entire country, would be highly impacted. Moreover, decreased water flows and diminishing levels of ground water, due to pit dewatering and the presences of large waste and ore facilities are equally dangerous as the overestimated seismic resistance of the mining facilities, which is questionable considering current earthquake prognoses for the region.
In addition, the poor and incorrect geochemical evaluation of wastes and ore, as well as an underestimation of acid drainage followed by the potential leaching of contaminated fluids or mined materials, would pose a high risk for the ecosystems in the surrounding areas. In conclusion, the inadequate research conducted by Lydian, and its inexperience in the mining field as well as the financial shortcomings to counteract these resulting environmental issues, make the Amulsar mining operation a high risk project, which should be reconsidered by officials and investors.

Further Information

The petition to stop the mining in Amulsar can be found under: https://www.change.org/. It is being supported by 31 NGO’s from all over, including Helsinki Citizens’ Assembly Vanadzor.

The documentary “Amulsar: State of indifference”, available in Armenian, Russian and English, can be found here: https://www.youtube.com/watch?v=LWhbwVIvhq8

Several detailed reports about the environmental consequences and dangers arising with the projects can be found on the webpage of Armenian Environmental Front:
http://www.armecofront.net/en/about-us-2/

Lydian Armenia webpage:
https://www.lydianarmenia.am/index.php?m=pages&lang=eng&p=67

The views expressed in the article belong to the author and may not necessarily reflect the views of HCA Vanadzor.

Pia Winter

EVS volunteer at Helsinki Citizens’ Assembly Vanadzor Office