Activists opposing Amulsar deposit development act with unchecked  information

ArmInfo. As a result of the  complaints submitted by the activists against Lydian Armenia in the  Office of the Advocate's Advisor on Compliance, Prime Minister Nikol  Pashinyan, during his visit to Vayots Dzor, was informed that the  Amulsar Program did not properly assess the impact of the field's  operation on the tourist brand Jermuk, and that the International  Finance Corporation (IFC) refused to finance the project due to the  identified environmental problems by the Office. <This statement is  not true>, is noted in the official statement of the company Lydian  Armenia.

<IFC never announced the withdrawal from Amulsar project due to  environmental problems. Moreover, IFC in its statement notes that the  assessment of the impact of the Amulsar project on the environment  corresponds to the best international experience, emphasizing that  the introduction of new standards in the mining industry of Armenia  is an achievement," is noted in the source with reference to the IFC  statement.  However, the exit from the shareholders of the Amulsar  project by the International Finance Corporation is due to the fact  that Lydian Armenia is successfully attracting funds for the  development of the field from private sources: "We are confident that  the implementation of the Amulsar program has the potential to  contribute to the economic development of the country."

Moreover, at the request of ArmInfo to the IFC Central Office about  the reasons for the company's withdrawal from the shareholders of  Lydian Int., the press service reported: "Since 2007, IFC has been  supporting Lydian and Amulsar gold mining project as part of a  strategy to support the development of the mining sector in Armenia.  Considering Lydian's success in fully funding the project, in May  2017, IFC refused its investment in the company, as we seek to use  our capital where it is most needed for sustainable economic  development."

According to the company, the prime minister was not informed  intentionally that the majority of the statements made by the  protesters, particularly those concerning the pollution of the waters  of Sevan, Vorotan and Jermuk, etc., were refuted as a result of the  Office's investigations. The report of the Office noted that all  these issues are appropriate in a way, they were evaluated, moreover,  measures are provided in accordance with IFC standards. <The head of  government should be informed that the impact of the program on  surface and groundwaters has been properly assessed and the  activities according to IFC criteria have been designed. Therefore,  allegations of water pollution are inappropriate," the company said  in a statement.

Lydian Armenia is a subsidiary of British Lydian International, whose  shareholders are also large international institutional investors  from the United States, Great Britain, a number of European  countries, including EBRD. The Amulsar project is the largest  industrial project in Armenia for the development of the Amulsar gold  deposit at a total cost of $ 370 million. In August 2016, a project  for the construction and development of the field was launched.  Preliminary work has been carried out since 2006. The life of the  Amulsar deposit will be 10 years and 4 months, an annual average of  200,000 ounces of gold (about 10 million tons of ore) is planned. The  company's shares are quoted on the Toronto Stock Exchange. Amulsar  deposit is the second largest in Armenia.