YEREVAN — The Amulsar gold mine officially began operations on October 10, marking the launch of one of Armenia’s largest mining investment projects. The opening ceremony was attended by Prime Minister Nikol Pashinyan, the deputy prime minister, government ministers, diplomats, and other officials.
Speaking at the ceremony, Pashinyan emphasized the project’s economic significance, describing responsible mining as an important driver of national development. He said the government had addressed public and environmental concerns, including fears of possible contamination of Lake Sevan, allowing the project to proceed without widespread protests.
However, the environmental initiative Amulsar Without a Mine challenged the prime minister’s remarks, claiming that its members had learned of the official opening only by chance while traveling to Jermuk.
In a statement, the initiative criticized the authorities for proceeding with the opening without a public announcement, describing the event as having been organized discreetly.
Addressing the project’s economic benefits, Pashinyan said substantial investments in modern equipment would create highly skilled, well-paying jobs and provide opportunities for workers to transition from manual labor to technical and specialized positions. He also highlighted the social assistance that Lydian, the company implementing the project, would provide to affected communities.
The prime minister stressed that Armenia’s natural resources belong to its people and must contribute to the country’s prosperity.
“The mineral resources that have now been transformed into gold belong to the Republic of Armenia and are the property of its people. Our greatest challenge has been to demonstrate that this wealth will serve Armenia’s development and well-being,” Pashinyan said.
He described the government’s 12.5 percent ownership stake in the project as an additional share held on behalf of the Armenian people. He also pointed to changes in the tax code and royalty system, which link certain mining revenues to international metal prices and are expected to generate additional income for the state.
According to Pashinyan, revenues flowing into state and local budgets will support infrastructure development, road construction, schools, and public safety. He expressed confidence that the investment would contribute to Armenia’s gross domestic product (GDP) growth and said the government intends to use the project’s standards as a benchmark for other mining operations and major investment initiatives.
Economy Minister Projects $130 Million in Annual Tax and Fee Payments
Speaking at the same ceremony, Economy Minister Gevorg Papoyan announced that, according to government estimates, the Amulsar project is expected to generate approximately $130 million annually in taxes and fees for Armenia’s state budget.
He added that the project could have a positive impact of approximately 1.5 percent on the country’s annual GDP.
Papoyan said more than $750 million had already been invested in the project, with annual gold production expected to exceed 210,000 ounces during its operational phase.
“Our calculations indicate that approximately $130 million will be paid annually to the state budget in taxes and fees. In addition, the government holds a 12.5 percent ownership stake in the project, which is also significant,” Papoyan said.
The minister described Amulsar as an important example of public-private cooperation, demonstrating Armenia’s ability to develop industrial projects that meet international standards while complying with environmental requirements.
He emphasized that the project’s significance extends beyond investment, employment, and tax revenues. According to Papoyan, Amulsar has introduced new technologies, international business practices, and operational standards that could benefit other sectors of Armenia’s economy.
Papoyan also predicted that the project would generate thousands of direct and indirect jobs and stimulate economic activity in surrounding communities, particularly Vayk, Jermuk, and Sisian.
“I am confident that this project will not only create thousands of direct and indirect jobs but also become an economic engine that opens new opportunities for the entire region,” he said.
The minister thanked those involved in bringing the project to fruition, acknowledging the challenges encountered during its development.
The launch of Amulsar represents a major milestone for Armenia’s mining industry, with the government anticipating substantial economic benefits. Nevertheless, environmental opposition and concerns surrounding the project’s potential ecological impact remain part of the broader public debate.
