The debate for the opening of the Amulsar gold mine (Caucasus Watch reported) nearby the Armenian spa resort of Jermuk is still ongoing in the country.

Prime Minister Nikol Pashinyan announced on 20 August his intention to allow the Anglo-American company Lydian to restart the gold mining project after ELARD published their report. The 200-page long report stressed that underground water at Amulsar has no physical “connections” with mineral water sources in Jermuk or rivers and canals flowing into Sevan. He added that Lydian International, would have to stick to “unprecedentedly high environmental standards that have not been applied in Armenia until now,” and that his government would force other mining companies in his country to also implement those standards.

Pashinyan’s decision was backed by the Deputy Economy Minister Avag Avanesyan who highlighted that Lydian’s mining project would produce $250 million worth of gold annually. “This means that the direct impact on GDP will amount to 1 percent,” he said. He continued by stressing that the mine would employ 750 people and that another 3000 jobs would be created by the Armenian firms that will be linked to the mining operation. He also stressed that Lydian is due to pay around $50 million in annual taxes.

Although the project would bring the country economic benefits, Pashinyan’s decision still was not backed by the residents of Jermuk, environmentalists and some opposition lawmakers. Hermine Mkhitaryan, an expert from the Hayatsk think tank noted that the conclusion drawn by the Lebanese ELARD company “was not a result of complex environmental study with just documents presented by Lydian having been studied,” and that Pashinyan’s decision is not in accordance with the parameters of the Prime Minister set one year ago over a detailed expert study on the subject.

On 23 August, Pashinyan visited the village of Jermuk in order to talk to the residents about the project. He told the residents that Lydian would not be allowed to launch the mining operations if the project would pose a serious threat to the environment. He also announced that he will seek additional explanations from ELARD before making his decision final. The residents of the village were not pleased with how the Prime Minister conducted his visit to Jermuk. They complained that Pashinyan did not listen to them, preferring to meet people in their apartments instead in the open.

After returning to Yerevan, Pashinyan admitted that he was very dissatisfied with the work of the ruling My Step faction parliamentary members. According to Pashinyan, the parliamentary members did not take any steps during this period to support the government’s position on the matter. He also openly stated that he has been left alone on the matter of the operation of the mine, according to a report from Zhoghovurd.

The deadline for a final decision is set on 4 September. By that time, the Ministry of Environment will submit a new conclusion. The conclusion will stress the need for a new Environmental Impact Assessment for exploitation of the Amulsar gold mine to the Office of the Prime Minister of Armenia.