Rising Metal Prices and Amulsar Mine Restart Expected to Exceed Budget Forecasts: Finance Minister

YEREVAN — The global rise in gold and copper prices, combined with the planned restart of operations at the Amulsar mine, is expected to have a positive impact on Armenia’s GDP and tax revenues, exceeding projections outlined in the 2026 state budget. This was announced by Armenia’s Minister of Finance, Vahe Hovhannisyan.

Responding to a question from CivilNet, the minister noted that when drafting the state budget, the government relied on more conservative price assumptions for precious metals. In particular, copper prices were calculated at around $10,000 per ton, while current market prices range between $12,700 and $13,000. The same applies to gold prices.

“Naturally, the positive movement in gold prices will have an impact compared to what we planned in the budget,” Hovhannisyan said.

Addressing the operation of the Amulsar gold mine, the minister stated that the government forecasts the production of four tons of gold in 2026. Although the initial calculations were made under significantly lower gold price assumptions—around $4,000 per ounce—current prices approaching $4,800 per ounce suggest increased tax revenues.

Hovhannisyan also commented on volatility in the precious metals market. According to him, the current price surge is driven not by consumer demand but largely by large-scale gold purchases by central banks worldwide.

“If there is no change in the behavior of central banks, a sharp decline in gold prices is unlikely,” the minister added, emphasizing that price fluctuations depend on global geopolitical and economic developments.

The Amulsar mine, one of Armenia’s largest investment projects, had remained inactive for many years due to environmental concerns and public protests. Despite ongoing objections from environmental groups, its restart is viewed as a key factor in boosting Armenia’s economic growth and export potential.