Lydian Company, Operator of Amulsar Gold Mine, Donates 12.5% of Shares to Armenian Government

The Armenian government has accepted a donation of 12.5% of shares from the Lydian company, the operator of the Amulsar gold mine. The decision was made during the Cabinet meeting on Thursday, a significant step in the ongoing partnership between the government, the Eurasian Development Bank, and Lydian Armenia.

Deputy Minister of Economy, Ani Ispiryan, presented the draft decision, emphasizing the commitment made by Lydian to invest a minimum of $250 million in the Amulsar gold mine project. As part of its responsibility, Lydian has pledged additional support to Armenian communities affected by environmental concerns, including financial contributions during the construction phase and annual financial support of 7 million dollars for each 12-month period.

The memorandum signed on February 22, 2023, outlined these commitments and, notably, the donation of 12.5% of Lydian's authorized capital shares to the Armenian government. The Cabinet's decision solidifies this donation, with the government set to receive 12.5% of ordinary shares, each with a nominal value of 5,000 drams ($12), totaling 12,503 shares.

The Ministry of Economy is slated to take on the responsibility of managing these shares, with a formal contract to be signed between the government and Lydian. Armenian Prime Minister Nikol Pashinyan expressed his approval, stating, "We considered the continuation of the project possible, and it is also very welcome that the investors themselves, perhaps following an example, have wanted the [Armenian] government to participate, have a share in that project. 12.5 percent of the shares shall pass to the Armenian government; that is, to the people [of Armenia]."

Pashinyan further highlighted the positive impact on affected communities, including Jermuk city, Sisian enlarged community, and Vayk community. In addition to the shares, Lydian will contribute 7 million US dollars annually to these communities, reinforcing their commitment to supporting the localities impacted by the Amulsar gold mine project.