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Lydian Armenia

From EverybodyWiki Bios & Wiki




Lydian Armenia
ISIN🆔
IndustryMining and Minerals
Founded 📆13 October 2005
Founder 👔Hayk Aloyan, Tim Coughlin
Headquarters 🏙️,
Yerevan
,
Armenia
Area served 🗺️
Production output
Au
💎 AUMAmulsar Gold Project
Members
Number of employees
ParentLydian Canada Ventures
🌐 Websitelydianarmenia.am
📇 Address
📞 telephone

Lydian Armenia is an exploration company registered in the Republic of Armenia. The company is planning to operate the Amulsar Gold Mine at Vayots Dzor Marz based on the permits issued by the RA Government. The Company is a 100% owned subsidiary of Lydian Canada Ventures CJSC.

Lydian Armenia’s Amulsar Project is the largest Western investment project in Armenia since independence..[1].

In 2011, Lydian was conferred Mining Journal’s “Outstanding Achievement” Award for discovery and exploration of the Amulsar Mine[2].

During the business conference “Sustainable Mining in Armenia” held in Yerevan on November 16th 2016, former US Ambassador to Armenia Richard Mills noted that the Amulsar Gold Mine Project was the vivid example of ensuring responsible mining in Armenia using environmental standards[3].

The Company committed to follow the Equator Principles, and the performance standards and requirements of International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD)[4][5].

Representatives of Armenian and international academic community considered the Amulsar Project the most extensively studied and well-managed project in terms of environment protection[6][7][8][9][10].

Company Overview

Lydian Armenia (former Geoteam) was founded in 2005, and as a result of extensive exploration discovered the Amulsar Gold Mine, which is currently its flagship project[11].

Hayk Aloyan, PhD in Geology, is the cofounder of Lydian Armenia and managing director since 2005.

Lydian International Limited registered in British Crown dependency of Jersey was 100% shareholder of the Company until May 2020.

In 2006, Lydian International established a joint venture (with 50/50 shares) with the world’s largest Newmont Mining Corporation.

In 2007 and 2008, International Finance Corporation (2007-2016) and European Bank for Reconstruction and Development (2008-2020) joined the Company as major investors[12].

The Company was listed in Toronto Stock Exchange since January 2008[13]. Toronto Stock Exchange is regarded as the best platform for mining companies. Following the listing, well-known major financial institutional investors, such as Amber Capital, Franklin Resources, Donald Smith Value Fund LP, Sprott Resources, Van Eck and many other institutional and private investors joined the Company.

Since May 2016, Lydian raised more than USD 420 million from three major institutional investors: Resource Capital Funds, Orion Mine Finance, Osisko Gold Royalties, for the construction of the Amulsar Project. ING Bank, CAT Finance and Ameriabank also participated in the Project funding[14][15].

After illegal blockades of the access roads to the Amulsar Project in June 2018, Lydian faced serious financial problems, which resulted in the company restructuring that began in Canada in December 2019[16].

As part of the restructuring process, Lydian International was delisted from the Toronto Stock exchange in February 2020[17].

As a result of the restructuring process, in May 2020, Lydian Canada Ventures owned by American Orion Mine Finance and Canadian Osisko Gold Royalties, became the 100% shareholder of Lydian Armenia. Both the institutional and minor individual shareholders lost their investments in the Amulsar Project. Among them were thousands of Armenian citizens and Armenians from Diaspora[18][19].

Developments around Lydian Armenia and the Amulsar Project suspension had a negative impact on foreign direct investments, and the investment credibility of the country[20][21].

Amulsar Gold Mine

Amulsar Project is a gold-bearing deposit located on the borderline of Vayots Dzor Marz and Syunik Marz within the ridge area of north (Amulsar), north-western branching of Zangezur Range, with the mineralization being at the elevation of 2500-2988m.

A group of Armenian and international geologists led by geologists Tim Coughlin and Hayk Aloyan discovered and explored the Amulsar gold-bearing quartzite deposit as a result of geological exploration and prospecting on Mount Amulsar since 2005[22].

Exploration activities in the Amulsar mineralization zone identified combined Tigranes-Artavazdes, Erato, Arshak and Orontes sites with their own internal structures.

Reserves of Tigranes-Artavazdes, Erato sites were approved in accordance with Armenian legislation, and the right for their extraction belongs to Lydian Armenia[23].

According to Lydian’s information, overall approved reserves amount to 89,376.3 Kt of ore, 73,733 kg of gold, 294.367 t of silver[24].

The mine is to be developed by combined Tigranes-Artavazdes and Erato open pits, with the annual mining output of 10 Mt of ore.

The operation of the mine is planned for 10 years; however, specialists of the Company assure that the Project has a great potential for expansion. According to the Project, an additional 5.5 years are provided for the closure of the mine.

Metals from the mine are to be extracted using the heap leaching method, which will be used in Armenia for the first time.

Investment Project

According to Hayk Aloyan, Managing Director of Lydian Armenia, at the construction phase, the Amulsar mine was one of the largest mining projects in the world[25] and the largest international investment in Armenia[26]. He stated that more than USD 90 million were invested in the Project for geological prospecting, and USD 370 million during the construction phase[27]. The construction of the Amulsar Project commenced on August 19, 2016, with the participation of high-ranking officials of the Armenian Government[28]. Prior to illegal blockades of the Amulsar access roads, more than 1,300 people were involved in the Amulsar Project, of which almost 500 were from the surrounding communities.

According to a Lydian’s board member Jeff Couch, the Company plans to invest about USD 200 million to complete the construction of the mine[29]. According to the same source, up to 1,000 direct jobs will be created at this stage of construction of the Amulsar Project, and 750 direct permanent jobs and 200 permanent contractors – during the next 10 years of mining.  The international statistics indicates that in the mining sector, one direct job creates 5-6 indirect jobs.

According to Lydian’s calculations, only the royalties and the profit tax to be paid by Lydian will amount to USD 60-70 million per annum. Lydian Armenia is expected to rank among the top 5 major taxpayers at the operational phase.

International Practice and Standards in Amulsar Project

Amulsar is the first and so far the only mining project in Armenia to conduct environmental and social impact assessment (ESIA) and monitoring in line with the standards of International Finance Corporation and European Bank for Reconstruction and Development[30][31]. This document is the basis on which international financial corporations and banks agree to make investments in a particular project.

The Company is also the first in Armenia to be a signatory to International Cyanide Management Code. The Amulsar is the fifth project in the world to obtain a pre-production certificate, and the first mining project in Armenia to be certified since the amendments to International Cyanide Management Code in 2016, which include stricter audit guidelines[32][33][34]. Cyanide Code regulates issues related to manufacture, transport and use of cyanide in the production of gold. Cyanide Code is a voluntary industry initiative. Both gold mining and cyanide manufacturing and transporting companies may become a signatory to the Cyanide Code. International Cyanide Management Code was developed by multi-stakeholder Steering Committee, under the auspices of United Nations Environment Program.

In 2017, for the first time in Armenia, Lydian Armenia also initiated the establishment of the Amulsar Independent Advisory Panel, which comprised Armenian and international environmental and social performance experts[35]. The Panel was chaired by internationally-respected responsible mining and conflict resolution expert Dr. John Harker[36][37]. In May 2018, the Panel published its first report on Amulsar Project.

Lydian Armenia has introduced and implemented international standards, practice and culture of occupational health and safety in Armenia. In 2018, Lydian Armenia achieved a milestone of 2 million man-hours without a lost time injury[38][39].

Environmental Studies Undertaken by Lydian Armenia

Lydian Armenia's environmental team headed by Armen Stepanyan, PhD in Engineering, and with the involvement of local and international experts, in 2008 started to carry out environmental and social studies and design of environmental management.

In accordance with Armenian law, the Company performed Environmental Impact Assessment (EIA) of the Project, as well as, for the first time in the mining sector, Environmental and Social Impact Assessment (ESIA)[40]. ESIA is the requirement of the international financial corporations and banks governed by Equator Principles, for making investments in a project. According to Lydian Armenia’s official information, the Company has spent more than USD 6 million on the preparation of these documents alone, involving international and local scientific institutions (Wardell Armstrong International[41], Golder Associates[42], Global Resource Engineering[43], Treweek Environmental Consultants[44], Environmental Resource Management, LUC[45], Institute of Botany, National Academy of Sciences of the Republic of Armenia, RA NAS Scientific Center of Zoology and Hydroecology[46], etc.). These documents are unprecedented in Armenia in their amount and quality.

Lydian Armenia committed to follow the best international practice and standards at the construction and operation stages, and planned to invest about USD 70 million in environmental management activities (treatment plants, groundwater lining systems, dust suppression systems and measures, etc.).

Company Activities in the Surrounding Communities of Amulsar

Until 2016, the affected communities were Gndevaz, Saravan and Gorayk. After the consolidation of the communities Jermuk also became an affected community. As part of EIA and ESIA processes, Lydian Armenia held public hearings and discussions both in affected communities and Yerevan[47][48][49][50][51][52].

According to Lydian Armenia’s news releases, since 2008 Lydian Armenia has paid more than USD 7 million to the budgets of Amulsar affected communities for rental of lands[53][54].

The Amulsar Project infrastructures required the completion of private lands acquisition by the company. According to the disclosed data, the company has acquired 278 plots with an area of 150 ha from 145 landowners[55]. More than $2.8 million were invested for acquisition of lands. Acquisition of private lands was carried out in compliance with IFC and EBRD standards and requirements. In the process of land acquisition, the pricing was based on Armenian legislation, international practice and was not limited only by the market value of the lands, but also accounted for assessment of the land use, presence of trees and crops, their quantity and age, yield, and other criteria[56].

The Company notes that social programs worth a total of USD 4 million have been implemented in the affected communities of the Amulsar Project, including construction of irrigation and potable water networks, gas pipeline, renovation of schools, library, medical post, funding of greenhouses, new high-productive agricultural technologies, artificial insemination, food processing and sale, as well as multiple small and medium-sized businesses[57][58][59][60].

The Company funded the renovation of the Vayk Hospital which included the surgery facility, installation of modern new elevator and other equipment in 2017 investing over USD 100,000. On this occasion, Lydian Armenia’s Managing Director Hayk Aloyan noted that this type of investments were of particular importance for Lydian Armenia, which would simultaneously serve the needs of the Amulsar Project and contribute to improving the living conditions of the surrounding communities[61]. In the same year, the irrigation canal, which was not operational for about 20 years, was renovated in the village of Gndevaz. The Company invested USD 500,000 to repair the 17km long water canal[62]

According to residents, most of the businesses in the communities were closed after the illegal blockades of the access roads to the Amulsar Project. People faced serious social problems, and out-migration gained momentum[63][64][65][66]

See Also

  • Armenia

References

Lydian Armenia


This article "Lydian Armenia" is from Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:Lydian Armenia. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.

  1. ↑ "Two U.S. firms to invest more than $500 mln in Armenia". PanARMENIAN.Net. Retrieved 2021-03-18.
  2. ↑ "Arminfo: Lydian International works hard across all corners of the globe on promoting Armenia as an investment destination". arminfo.info. Retrieved 2021-03-18.
  3. ↑ "HSBC to increase support for Armenian mining industry". Banks.am. Retrieved 2021-03-18.
  4. ↑ "Jürgen Rigterink: There are high hopes of improving the business sector in Armenia". Banks.am. Retrieved 2021-03-18.
  5. ↑ Systems, Smartline. "Lydian Armenia". LYDIANARMENIA (in русский). Retrieved 2021-03-18.
  6. ↑ LLC, Helix Consulting. "Ամուլսարը նոր մշակույթ է մեր լեռնային արդյունաբերության մեջ. Երկրաբան - Այսօր' թարմ լուրեր Հայաստանից". www.aysor.am. Retrieved 2021-03-18.
  7. ↑ Անկախ փորձագետները մասնակցեցին Ամուլսարի հարցով ընդդեմ էներգետիկայի նախարարության դատական նիստին, retrieved 2021-03-18
  8. ↑ "Amulsar Independent Advisory Panel released its first report". mediamax.am. Retrieved 2021-03-18.
  9. ↑ Sevak. "Իրականում ռիսկերը մեր կանխատեսածից փոքր են. Փորձագետը՝ Ամուլսարի ծրագրի մասին". yerevan.today (in հայերեն). Retrieved 2021-03-18.
  10. ↑ "Arminfo: Sargis Shahazizyan: If the operation of Amulsar is considered catastrophic from environmental point of view, then 90% of mining enterprises should have been suspended". arminfo.info. Retrieved 2021-03-18.
  11. ↑ Systems, Smartline. "Լիդիան Արմենիա". LYDIANARMENIA (in русский). Retrieved 2021-03-18.
  12. ↑ Designer. "Lydian - Lydian To Purchase Newmont's Interest In Amulsar Gold Project". www.lydianinternational.co.uk. Archived from the original on 2021-04-11. Retrieved 2021-03-18.
  13. ↑ "Lydian - Lydian International Ltd. Commences Trading On The Toronto Stock Exchange". www.lydianinternational.co.uk. Archived from the original on 2021-05-11. Retrieved 2021-03-18.
  14. ↑ Systems, Smartline. "Lydian Secures US$24 Million Equipment Financing for Amulsar". LYDIANARMENIA (in русский). Retrieved 2021-03-18.
  15. ↑ "Works in Amulsar gold mine to be conducted by Caterpillar equipment worth 65 mln USD". armenpress.am. Retrieved 2021-03-18.
  16. ↑ Systems, Smartline. ""Լիդիանը" հայտարարեց "Ընկերությունների պարտատերերի հետ հարաբերությունների կարգավորման ակտի" շրջանակներում վերակառուցման գործընթացի մեկնարկի մասին". LYDIANARMENIA (in русский). Retrieved 2021-03-18.
  17. ↑ "Lydian to leave TSX". www.mining-journal.com. 2020-01-13. Retrieved 2021-03-18.
  18. ↑ Systems, Smartline. "Ռեստրուկտուրիզացիա. հաճախ տրվող հարցերի պատասխաններ". LYDIANARMENIA (in русский). Retrieved 2021-03-18.
  19. ↑ Technologies, Peyotto. ""Թող նեղվեն դրա վրա միլիոններ աշխատողները, որոնց անունները նույնիսկ հայտնի չեն, ու նրանք, ովքեր դրա դեմ պայքարելու փոխարեն՝ Ամուլսարի դեմ են պայքարում փողի դիմաց"". Retrieved 2021-03-18.
  20. ↑ "ԱՄՆ պետդեպը զարմանալիորեն չի տեսնում Հայաստանում օրինականության եւ ժողովրդավարության խայտառակ ոտնահարումները․ "Ազգ"". www.aravot.am. Retrieved 2021-03-18.
  21. ↑ Technologies, Peyotto. "Ուղղակի ներդրումների զուտ հոսքերի աճը 5 անգամ պակասել է. Հրապարակվել է ներդրումների վիճակագրությունը". Retrieved 2021-03-18.
  22. ↑ "Հայկ Ալոյանի junk mail-ի "գաղտնիքը"". Banks.am (in አማርኛ). Retrieved 2021-03-18.
  23. ↑ "Mining rights - Mining Resources - www.minenergy.am". www.minenergy.am. Retrieved 2021-03-18.
  24. ↑ Systems, Smartline. "Ամուլսարի հանքի մասին". LYDIANARMENIA (in русский). Retrieved 2021-03-18.
  25. ↑ "Minister of economic development visits Amulsar site: first gold extraction expected in spring 2018". armenpress.am. Retrieved 2021-03-19.
  26. ↑ "Minister of economic development visits Amulsar site: first gold extraction expected in spring 2018". armenpress.am. Retrieved 2021-03-19.
  27. ↑ Amulsar: New Script, retrieved 2021-03-19
  28. ↑ Amulsar project Groundbreaking Event, retrieved 2021-03-19
  29. ↑ Արմեն Սարգսյանն Ամուլսարում մաս չունի, իսկ թուրք ադրբեջանական կապիտալի մասին խոսելն անհեթեթ է, retrieved 2021-03-19
  30. ↑ Systems, Smartline. "Amulsar ESIA report". LYDIANARMENIA (in русский). Retrieved 2021-03-19.
  31. ↑ Systems, Smartline. "Environmental Monitoring Report". LYDIANARMENIA (in русский). Retrieved 2021-03-19.
  32. ↑ "Amulsar gets conditional ICMC/Cyanide Code certification". mediamax.am. Retrieved 2021-03-19.
  33. ↑ "Lydian International's Amulsar Gold Mine Certified Under International Cyanide Management Code | International Cyanide Management Code (ICMI) For The Manufacture, Transport and Use of Cyanide In The Production of Gold(ICMI)". www.cyanidecode.org. Archived from the original on 2021-04-10. Retrieved 2021-03-19.
  34. ↑ "Content | International Cyanide Management Code (ICMI) For The Manufacture, Transport and Use of Cyanide In The Production of Gold(ICMI)". www.cyanidecode.org. Retrieved 2021-03-19.
  35. ↑ "Lydian announces Independent Expert Panel to monitor activities". Banks.am. Retrieved 2021-03-19.
  36. ↑ "John Harker". Development Corridors Partnership. Retrieved 2021-03-19.
  37. ↑ "Mandela's special advisor talks economy in post-revolutionary Armenia". mediamax.am. Retrieved 2021-03-19.
  38. ↑ Sevak. "2 միլիոն ժամ՝ առանց վնասվածքների. ցուցանիշներ Ամուլսարի հանքի շինարարական փուլից". yerevan.today (in հայերեն). Retrieved 2021-03-19.
  39. ↑ "Amulsar achieves an important milestone". Banks.am. Retrieved 2021-03-19.
  40. ↑ Systems, Smartline. "Ամուլսարի ոսկու հանքի ԲՍԱԳ հաշվետվություն". LYDIANARMENIA (in русский). Retrieved 2021-03-19.
  41. ↑ "Environmental, Engineering and Mining consultancy". Wardell Armstrong. Retrieved 2021-03-19.
  42. ↑ "Home". Golder. Retrieved 2021-03-19.
  43. ↑ "Global Resource Engineering | Mining Consultants". gre-website. Retrieved 2021-03-19.
  44. ↑ "Treweek Environmental Consultants". www.treweek.co.uk. Retrieved 2021-03-19.
  45. ↑ "LUC - Environmental Planning, Design and Management". LUC - Environmental Planning, Design and Management. Retrieved 2021-03-19.
  46. ↑ "ՀՀ գիտությունների ազգային ակադեմիա". www.sci.am. Retrieved 2021-03-19.
  47. ↑ Part 4. Amulsar Project's Public Hearings in Gorayk, retrieved 2021-03-19
  48. ↑ Part 1. Amulsar Project's Public Hearings in Gorayk, retrieved 2021-03-19
  49. ↑ Part 2. Amulsar Project's Public Hearings in Gorayk, retrieved 2021-03-19
  50. ↑ Part 3. Amulsar Project's Public Hearings in Gorayk, retrieved 2021-03-19
  51. ↑ Amulsar Project's Public Hearing in Gndevaz (25/08/2014), retrieved 2021-03-19
  52. ↑ Հանրային լսումները Ջերմուկում և Երևանում 2015 և 2016 թթվականներին, retrieved 2021-03-19
  53. ↑ Technologies, Peyotto. "Lydian has Paid Over 930 000 USD to Local Communities in Land Rent Payments Out-migration Increased due to Lost Jobs". Retrieved 2021-03-19.
  54. ↑ Systems, Smartline. "921 հազար ԱՄՆ դոլար Ամուլսարի հարակից համայնքներին հողի վարձակալության դիմաց". LYDIANARMENIA (in русский). Retrieved 2021-03-22.
  55. ↑ Գնդեվազցիները հողերի ձեռքբերման մասին, retrieved 2021-03-19
  56. ↑ Systems, Smartline. "http://www.lydianarmenia.am/index.php?m=pages&lang=arm&p=110". LYDIANARMENIA (in русский). Retrieved 2021-03-19. External link in |title= (help)
  57. ↑ Ի՞նչ է արել Լիդիանն Ամուլսարի հարակից համայնքներում, retrieved 2021-03-19
  58. ↑ ""Լիդիան Արմենիա"-ն և ՀՀ-ում Լիտվայի դեսպանությունը շարունակում են ճանապարհային անվտանգության մշակույթի տարածման շուրջ համագործակցությունը". armenpress.am (in հայերեն). Retrieved 2021-03-19.
  59. ↑ Technologies, Peyotto. ""ԴիջիՔեմփ" և "Արմաթ" ճամբարներին մասնակցեցին նաև Ամուլսարի հարակից համայնքների աշակերտները (տեսանյութ)(լուսանկարներ)". Retrieved 2021-03-19.
  60. ↑ ""Լիդիան Արմենիա"-ն աջակցում է ՓՄՁ-ներին". Banks.am (in አማርኛ). Retrieved 2021-03-19.
  61. ↑ Sevak. ""Լիդիան Արմենիա"-ն 100 հազար ԱՄՆ դոլար է ներդրել Վայքի հիվանդանոցի վերանորոգման և տեխնիկական վերազինման համար". yerevan.today (in հայերեն). Retrieved 2021-03-19.
  62. ↑ Վերագործարկվել է ինքնահոս ոռոգման ջրագիծը, retrieved 2021-03-19
  63. ↑ Կառլեն Բաբայան - Սարավան, retrieved 2021-03-19
  64. ↑ Ելենա Թումանյան - Գորայքի համայնքի նախկին գործարար, retrieved 2021-03-19
  65. ↑ Գնդեվազ համայնքի՝ Լիդիան Արմենիայի կողմից իրականացվող սոցիալական ծրագրերի դադարեցումից տուժածները, retrieved 2021-03-19
  66. ↑ Ճանապարհ փակողների համար "բնապահպանությունը" պատրվակ է. "Ամուլսարի հանք" նախաձեռնող խումբ, retrieved 2021-03-19

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