As you can see, the government's statements are not accidental, and they are preparing the public for decisions in favor of the development of Amulsar mine. At the same time, important processes are underway in the international arena regarding Amulsar project, and within its framework, the liability of the government and other stakeholders have been determined, in particular that of the European Bank for Reconstruction and Development, for the implementation of international conventions and other regulations. The international community, represented by CEE Bankwatch Network, is watching this very closely.
CEE Bankwatch Network is a global network which operates in Central and Eastern Europe. There are 17 member groups, multiple non-governmental organizations based in different locations; the network is one of the largest networks of environmental NGOs in Central and Eastern Europe. Bankwatch was set up in 1995, and it focuses on monitoring the actions of different international financial institutions, such as the European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD), while publicizing and exposing potential risks of the projects to the public in order to address environmental, social, and economical causes. The network aims to influence the decisions of the EIB and the EBRD and campaign for the protection of human rights and the environment.
CEE Bankwatch Network has published a new report on Europe’s Green Deal warning that the European Green Deal’s push for raw materials should not come at the expense of workers, local communities and nature. One of the cases covered in the report is Amulsar gold-bearing quartzite mining project in Armenia. “The case of the Amulsar gold mine is just one example of a common pattern in mining cases: metal mining poses a huge threat to biodiversity, and it is often the communities who lead the effort to protect nature. The Amulsar Gold Mine is situated in central Armenia close to the popular spa town of Jermuk. Amulsar Mountain feeds the headwaters of major rivers for a number of very important water basins in the country. Canadian company Lydian International planned to develop an open-pit gold mine, which was expected to impact not only the water sources and air quality, but also the state of wildlife in this valuable natural region. The company received support from the EBRD (in 2009 and 2017) and the International Finance Corporation (IFC) (the latter withdrew from the project in 2017). Lydian originally planned to use an extraction and processing technology known as cyanide leaching, which has alarmed the surrounding communities due to the technology’s potentially hazardous effects. Local residents, who make their livelihood by tending apricot orchards, collecting wild plants, breeding animals and farming fish, blocked access to the mine in 2018. In the summer of 2020, the company used force to break the protesters’ road blockades and intimidated and discredited members of the local community, protesters and activists by starting court cases”, the Report particularly noted.
On 1 July 2020 Bankwatch contacted the EBRD's Office of the Chief Compliance Officer and the bank's Accountability Mechanism to inform them about rising tensions at Amulsar. Bankwatch requested that the Compliance and Accountability Offices get in contact with the bank's project team, Yerevan office and the client, to convey the expectation that Lydian will actively engage with the police and other agencies to avoid the use of force at the project site.
Bankwatch appealed to the EBRD to ensure that any provocations and attempts to remove the blockade by use of force should be avoided. “Gaining access to the mine by force will not help the company to gain a social license and is likely to cause further exacerbation of conflicts in the community,” CEE Bankwatch request says.
The EBRD Accountability mechanism responded promptly to the call and informed that the appeal has been communicated to the Amulsar project team and the EBRD's office in Yerevan.
CEE Bankwatch reminds Lydian that the EBRD Environmental and Social Policy outlines clear provisions related to the Bank's expectations of security force conduct, namely that the client "will not sanction any use of force except when used for preventive and defensive purposes in proportion to the nature and extent of the threat".
CEE Bankwatch Network supported the complaint filed by the local residents and society to Independent Project Complaint Mechanism (IPAM) EBRD. 23 residents from the residential areas affected by Amulsar gold-bearing quartzite mining 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.
The complaint has been accepted and currently it is in investigation phase; as the official website of the EBRD says, 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.
In March 2020, Andrey Ralev, on behalf of CEE Bankwatch Network, "Ecolur" Informational NGO, “Armenian Forests” NGO, and “Green Armenia” NGO filed a complaint to the Bern Convention Secretariat. The complaint particularly said that the Armenian Government has violated Article 4, point 1 and 2, Article 5 and Article 6 of the Bern Convention by issuing permits to the Amulsar Gold Project and allowing significant impact on protected habitats and species from Resolution No. 4 (1996) and Resolution No. 6 (1998) of the Standing Committee. The project is situated within and has already impacted territories of Emerald Site "Djermuk" area AM0000009 and could have further significant impacts on other Emerald sites: "Sevan" National park AM0000002 and "Gorhayk" area AM0000002, all three adopted as candidate sites by the Standing Committee of the Bern Convention. Armenian Government disregarded procedures for evaluation of projects impacting Emerald sites by not doing proper assessment on protected species and habitats, and the EIA reports applied methodologies that violate the Bern Convention and are incompatible with the Emerald Network.
To be continued
March 29, 2021 at 16:48