EBRD Doesn’t Finance Amulsar Project Any Longer

EBRD Doesn’t Finance Amulsar Project Any Longer

The European Bank for Reconstruction and Development (EBRD) no longer finances the Amulsar project, as we learn from the bank's official website. The article entitled "Lydian (Amulsar Gold Mine) Extension" published on the EBRD website on August 6, specifically says:

Project Description

In 2015, Lydian International Limited had completed exploration of the Amulsar gold deposit and had secured financing to start mine development. In 2016, the EBRD provided Lydian International with an equity injection, which was earmarked for financing of the Environmental and Social Mitigation Measures (ESMM) (as defined in the ESAP, including financing a biodiversity off set programme and the construction of water treatment facility) and related activities.

Client Information


Lydian International used to be a publically-held corporation, registered in Jersey, Channel Islands and listed on the Toronto Stock Exchange. Its key asset was the Amulsar gold deposit in Armenia. Lydian International became insolvent in 2019 at which time it applied for protection from its creditors in Canada allowing it to restructure its business and financial affairs. As part of the insolvency proceedings, a corporate restructuring plan was adopted resulting in the company's existing senior lenders in Lydian Canada, Lydian UK and Lydian Armenia owning and controlling the assets while Lydian International is subjected to closure proceedings before the competent Jersey court. As of July 2020, the Amulsar gold deposit is owned by Lydian Ventures of Canada, where the EBRD is not a shareholder. The EBRD remains a shareholder, for now, in Lydian International of Jersey, which has no assets. The lenders will apply to the court in Jersey for it to be wound up.

EBRD Finance Summary

The Bank invested CAD 11.4 million to purchase shares of Lydian International as part of its capital increase. The funds were used to finance ESMM undertaken as part of the project. The EBRD did not invest in Lydian Ventures and does not have a financial interest in it. Environmental and Social Summary An ESIA was prepared for the project, and the EBRD was actively monitoring the implementation of the ESIA until the point of Lydian International's insolvency, at which time the EBRD's financial interest in the Amulsar project ceased.

The termination of the EBRD's financial interest in the Amulsar Plan is also stated in the EBRD IPAM published on the Bank's website

Reminder: 23 residents from the residential areas affected by Amulsar gold-bearing quartzite mining project have applied to the Independent Project Accountability Mechanism (IPAM) of the EBRD calling on the IPAM to suggest the EBRD to withdraw from the Amulsar project as Amulsar project implemented by the company doesn’t comply with the Social and Environmental Policy of the Bank. CEE Bankwatch Network, “EcoLur” Informational NGO, “Forests of Armenia” NGO, “Green Armenia” NGO, “Armenian Environmental Front” Civic Initiative have joined this application to support Jermuk residents.

August 13, 2020 at 17:22