Armenian Government Approves $150 Million Loan Guarantees for Amulsar Gold Mine

YEREVAN – The Armenian government has approved $150 million in loan guarantees for a U.S.-Canadian company to help revive operations at the Amulsar gold mine.

The company, now known as Lydian Canada Ventures, had planned to commence open-pit mining at the Amulsar gold deposit in late 2018, aiming to produce 210,000 ounces of gold annually—valued at approximately $550 million at current international prices. This was more than two years after securing the necessary licenses from Armenia’s former government. However, operations were disrupted when environmental protesters blocked all access roads to Amulsar following the Velvet Revolution of April-May 2018.

Protesters argued that the mining project would cause significant environmental damage. Lydian, however, dismissed these concerns, asserting that it would employ modern technology to mitigate any environmental risks.

The current Armenian government did not revoke Lydian’s mining licenses but refrained from using force to remove the blockade. By that time, the company claimed to have invested $460 million in the project.

In December, a senior Lydian executive stated that the company was close to securing $150 million in loans from Armenian banks to complete the construction of production facilities at Amulsar. During a weekly cabinet meeting in Yerevan, the government approved guarantees for these loans.

A government statement on the decision emphasized that the Amulsar project is expected to contribute an additional 1–1.5 percentage points to Armenia’s annual economic growth, making it of “vital importance” to the domestic economy. It also noted that Lydian has pledged to adhere to the “best international standards” for environmental safety.

Under Armenian law, a loan guarantee cannot exceed 20 percent of a company’s net assets. As a result, Lydian will be required to undergo an independent audit and confirm compliance with this requirement within the next six months.

Headquartered in Canada, Lydian hopes to commence gold mining operations at Amulsar in the fourth quarter of this year. The project is expected to create at least 700 jobs and generate up to $100 million in annual tax revenue, making it one of Armenia’s leading taxpayers.

The Amulsar gold deposit is the second-largest pure gold deposit in Armenia, containing approximately 31 million tons of ore and 40 tons of pure gold. It is located in southeastern Armenia, 13 kilometers from the resort town of Jermuk, between the Arpa and Vorotan rivers.