Thursday, August 13 2020 14:16

ArmInfo. On August 13 in Yerevan, green activists will hold a bicycle march against the development of the Amulsar field.

According to the event initiators, the march will also demonstrate  solidarity and support to the residents of Jermuk, who actively  oppose the Amulsar project. As part of the cycling march, the  activists plan to drive around the capital's streets and announce the  situation in Amulsar through loudspeakers.

The total cost of the Amulsar project is $ 370 million. The life of  the deposit is 10 years and 4 months, while it is planned to extract  an average of 200 thousand ounces of gold annually. To note, Lydian  Armenia is a subsidiary of the British offshore Lydian International.  Environmentalists and ordinary citizens are concerned that the  operation of the mine may lead to the pollution of the mineral  groundwater in Jermuk and Lake Sevan. In addition to the water basin,  the public is also concerned about the possible presence of uranium  manifestations at the deposit. Environmentalists and activists demand  that the positive conclusion on the EIA project be invalidated, since  it was adopted with legislative violations, and the document itself  contains problems and shortcomings.

Yesterday the European Bank for Reconstruction and Development (EBRD)  announced the completion of its participation in the project for the  development of the Amulsar field. Earlier this year, Lydian  International, a mining company that faced difficult financial  situation, announced a restructuring and was delisted on the Toronto  Stock Exchange. The European Bank for Reconstruction and Development  initially took part in the capital of the offshore company Lydian  International, registered on the Jersey island, together with the  International Finance Corporation (IFC), which withdrew from the  project 2 years ago.  The participation of these international donor  partners allowed the offshore company to enter the Canadian exchange  market and attract additional investment from institutional investors  in the form of investment and pension funds. The main lenders today  remain Orion Resource Partners, Osisko Mining and Resource Capital.

The Bank Fidanka McGrath notes that the current events around the  Amulsar mine bring significant reputational damage to the EBRD, even  after the EBRD's stake in Lydian International is liquidated.