We, the concerned citizens of Armenia, are writing to you with a call to withdraw your investment/funding from the Amulsar mining project implemented by Lydian Company.
You are certainly familiar with Lydian Corporation’s interest in operating a gold mine in Amulsar. As investors/lenders of this business plan, you have received thousands of signatures on change.org calling for your funding to be stopped, and you should be aware that throughout its life the mine project has faced resistance because it poses major health risks to the local population. and threatens the region’s natural environment. Moreover, opponents of the mine have continuously warned of serious negative economic consequences in the long term, as the region will be completely deprived of job opportunities and flora and fauna will be destroyed. At the same time, it is the local residents who will bear the unbearable burden of surviving alongside the mine shafts, waste heaps and empty rock piles. There is no reliable and accurate data that mining in Amulsar will not negatively affect Jermuk’s underground water sources. the same waters that have been used for medicinal purposes for decades. Located in the catchment area of Lake Sevan, the mine also poses a risk of pollution to the region’s largest water body, Lake Sevan. These are problems passed down from generation to generation, which will continue to exist even when any of the Armenians living today will not be alive for a long time.
It should be emphasized that the opinion of the largest affected community, the citizens of Jermuk, about the exploitation of a mine in their vicinity was never taken into account. And other communities, such as the village of Gndevaz, have expressed their disagreement with the project since 2011, understanding very well the risk of permanent loss of their fertile agricultural lands as a result of the mine’s operation. In 2014, local residents appealed to the financial institutions investing in the Amulsar project, the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), to end their support for the mine. The Office of the IFC Compliance Advisor (IFC Ombudsman) found that Lydian did not comply with IFC standards on several occasions. Regardless of this circumstance, in 2017 The IFC withdrew from the project, while the EBRD continued to participate in this mining project and did not address complaints. Since 2015, several lawsuits have been filed against the mine project, both by community residents and environmental NGOs, whose proceedings are still ongoing.
Since June 2018, when faith in democratic values was revived after the revolution in the country, residents of the surrounding communities of Amulsar took the initiative and blocked the roads leading to the mine. Since November 2018, they have also democratically organized petitions and confirmed through council resolutions that they are against metal mining in their communities.
of the problems raised by the Armenian and foreign legal and scientific fields, in particular, that the necessary procedures were not followed in the Environmental and Social Impact Assessment (ESIA) and Environmental Impact Assessment (EIA), the RA government decided to hire foreign organizations to study Lydian’s original EIA/ESIA documents. In 2019, within the framework of the criminal case initiated by the RA Investigative Committee. In January, a contract was signed with the Lebanese ELARD and the American TRC companies.
2019 In June, ELARD-TRC provided an Environmental and Social Impact Assessment Study, an independent 3rd party assessment of water resources and geology, biodiversity and air, with shocking findings. The ELARD-TRC studies clearly showed that the original EIA was full of omissions, conflicting data, inaccuracies, incorrect or false reporting, and included other fabricated data, which, taken as a whole, could best be described as “unscientific”. In response to the government’s question, “Given the location of Amulsar, its geographical position, the surrounding settlements and health resorts, can open pit mining, the presence of a leach pile and a waste rock fill be considered safe, and if not, what kind of environmental damage could it cause?” to cause it”, the answer of ELARD-TRC is as follows. “The EIA/ESIA evaluations are incomplete, the relevant conclusions are unreliable. Therefore, the question whether the general operation of the mine can be generally considered safe cannot be answered. We suggest you read the study:[1] to confirm the rather sharp accusations we have quoted.
The ELARD-TRC study, commissioned by the Committee of Inquiry, details page after page of inaccuracies in the scientific procedures that really call into question the feasibility of the program. It also proves that the audit reports once ordered by Lydian to comply with IFC standards (for example, prepared by Knight Piésold consulting firm) are solely aimed at presenting the projects as financeable, rather than conducting scientific verification and evaluation.
The ELARD/TRC assessment has serious implications for investors/lenders. It may involve corporate and investment fraud, deliberate misleading of investors/lenders, deliberate concealment of the real risks and therefore the real costs of a mining project. In just one of the many passages in this assessment, for example, the assessors note that the mine closure duration and costs have been reduced from the standard 30 years to the current 5 years, thus reducing mine closure costs by more than half.
We understand that as business and financial entities, you are interested in making a profit, but the purpose of this letter is to inform you of the fraudulent activities of your client corporation, and to warn you that you too share the potential consequences.
We urge you to withdraw your investment/funding from the Amulsar gold mine project of Lydian company.”
Interview Between Time.news Editor and Environmental Expert on the Amulsar Mining Project
Time.news Editor (TNE): Welcome to our special interview segment. Today, we’re diving deep into the controversial Amulsar mining project in Armenia, which has generated significant concern among local residents and environmentalists alike. I’m joined by Dr. Amelia Harutyunyan, an environmental scientist and activist who has been closely monitoring this situation. Thank you for joining us, Dr. Harutyunyan.
Dr. Amelia Harutyunyan (AH): Thank you for having me. It’s crucial to talk about what’s happening in Armenia, especially regarding the Amulsar project.
TNE: Let’s start with the basics. Lydian Company has been pushing forward with its plans for the Amulsar gold mine. However, there is a strong opposition from local citizens. Can you explain the main concerns that these communities have?
AH: Certainly. The primary concerns revolve around health risks and the potential environmental damage that the mining operations could cause. Local residents have consistently voiced their fear that the mining will contaminate nearby water sources, including those used for medicinal purposes in Jermuk. With Amulsar being in a crucial ecological area—close to Lake Sevan—there is a legitimate concern about the long-term impacts on this vital water body as well.
TNE: It seems there hasn’t been sufficient consideration of local voices in this process. What has been the response from these communities?
AH: The residents of communities like Jermuk and Gndevaz have been remarkably organized. Since June 2018, after the revitalization of democratic sentiment in Armenia, locals have taken action by blocking access to the mine and issuing petitions against the project. They feel their land and health are at stake, and they’re advocating for their rights to be heard.
TNE: That’s powerful. The article mentions the findings of an independent assessment by ELARD and TRC. What were the implications of their report?
AH: Their findings were quite alarming. The assessment pointed out that the original Environmental Impact Assessments (EIA) conducted by Lydian were riddled with omissions and inaccuracies, leading to a characterization of the reports as “unscientific.” The experts concluded that open-pit mining in such a sensitive area as Amulsar is potentially unsafe, emphasizing that the previous assessments failed to consider the unique geographical and environmental context of the site.
TNE: Such findings raise serious questions about the entire project’s credibility. How do financial institutions factor into this situation?
AH: Financial institutions like the International Finance Corporation and the European Bank for Reconstruction and Development have been heavily scrutinized. While the IFC rolled back its support in 2017 after acknowledging non-compliance with its standards, the EBRD has yet to address the community’s complaints effectively. This inconsistency raises ethical concerns about how these institutions are supporting projects that significantly impact local populations.
TNE: What is the next step for activists and the local community in their struggle against the mining project?
AH: Activists are focusing on raising awareness and continuing to build community consensus against the mine. Legal avenues are still open, with several ongoing lawsuits targeting the project based on environmental and health concerns. The goal is to document every violation and make sure the voices of the citizens are amplified until the necessary changes are made.
TNE: Thank you, Dr. Harutyunyan, for sharing your insights. It’s crucial for our audiences to understand the gravity of the situation in Amulsar. Any final thoughts for our readers?
AH: I urge everyone to stay informed and support local communities in their fight for environmental justice. This isn’t just an Armenian issue; it’s a global concern. Responsible investment decisions are vital, and those who fund these projects must prioritize the rights and wellbeing of affected communities.
TNE: Thank you for your perspective, Dr. Harutyunyan, and for your dedication to this important issue. We’ll continue to follow this story closely and keep our audience updated.
AH: Thank you for your coverage. Together, we can shine a light on these critical issues.