Representatives of international banks, investment organizations and private investors are currently in Armenia and their visit aims to examine the prospects of investments in Amulsar gold project.

Upon the invitation of Geoteam, the Armenian subsidiary of British Lydian International which is going to run the Amulsar gold mine, representatives of French BNP Paribas Bank, Canadian Bank of Montreal (BMO), Scotia Bank, Resource Capital Funds, Asian Development Bank and Swiss Earth Resources visited Amulsar July 18-19.


Drilling machine gets mining samples from 400 meters deep.
Photo: Mediamax.

On July 18, the Geoteam management presented them the technical and economic details of the project and the social programs implemented by Geoteam in the adjacent communities.

Commenting on the impressions from the Amulsar project, representative of French BNP Paribas Bank Thomas LaGree said that Geoteam had realized extensive work and BNP Paribas which already had a practice of investments in Armenia is considering the option of joining Amulsar program. As a member of Equator Principles, BNP Paribas has rigid environmental and social standards.


Mining samples.
Photo: Mediamax.

“The presence of international investors, the fact that Armenia has experience in mining, the high-level of literacy of locals, new Law on Subsoil adopted in Armenia as well as Lydian’s and Geoteam’s experienced team are trustworthy”, Thomas LaGree.

General Director of Geoteam Hayk Aloyan informed that the company invested USD45mln in investigative and research works and expected to attract around USD250mln more which is needed for the construction phase of the mine. The overall cost of the project is evaluated at USD400mln.

Mining samples, assorted at a laboratory in Gorayk, are sent to Romania to determine the gold and silver consistence in them.
Photo: Mediamax.

Within the visit, the investors were also presented Geoteam’s social projects in adjacent Gndevaz, Gorayk and Saravan villages and town of Jermuk where the company had invested around USD500thousand so far. In Gorayk village particularly, the library and roads were reconstructed, a lab where the samples are grinded and sorted was built which employs over 2 dozens of people.

The kindergarten was repaired and programs for economic development were implemented in Gndevaz, and Saravan was supplied with gas and upgraded irrigation system. The company helped 50 households apply new technologies for growing fruit and vegetables, provided health insurance to 765 people, covered tuition fees of 11 students from 3 communities etc.

Geoteam has become the major employer of these communities employing 150 people.

Ruben Harutyunyan