Alarm Signal Addressed to IFC and EBRD, Investors of Lydian International

Alarm Signal Addressed to IFC and EBRD, Investors of Lydian International

EcoLur

The website of Geoteam Company http://www.geoteam.am/media/documents/Newsletters/Scoping%20Study/Social%20baseline/SocialBaselineStudy-Jermuk,Kechut_ARM.pdf displays the information that about 70% of Jermuk residents are aware of Amoulsar project and many residents refer positively to the company’s activities.  Nevertheless, on 28 November Jermuk residents expressed great concern in regard with the project at the discussion on Amoulsar project (see http://youtu.be/0XlmgAGY-fg). They raised concerns about risks, but they were not satisfied with the replies given by the company representatives. After the end of the discussions, Ecolur received an alarm signal from Vayots Dzor Region that about 20 employees had been sacked. The locals sent a statement via the social network on the internet to EcoLur representative having taken part in the discussions, which particularly says, “Because of you and people like you 20 people had been sacked. Can you pay 100,000 AMD so as they are able to survive?”. It’s clear that people employed by the company are naturally interested in the company’s further operation. The conflict of interests is as follows: Jermuk is the center of resort health, where the deposit of Jermuk mineral waters is located, and it’s the subject matter of export, resort centers, sanatoriums, therapeutic mud baths etc. The deposit of mineral waters is rather fragile, while the resort zone has a high degree of seismicity. Experts raise fears that explosions to be conducted in case of opencast development of Amoulsar gold mine development may cause a change in spring directions and they will get closed. On the other hand, Jermuk Mayor and other residents many time expressed their concerns that Jermuk brand as a resort zone will inevitable suffer, if an opencast mine will be developed nearby (see “Amoulsar – Gold Rush” Documentary, http://youtu.be/WYrvTHtTgBk). 

We would like to remind that public has a right to express its concerns in regard with the risks, while the company leasing the mine, which belongs to the nation under the Armenian Constitution, must substantially respond to these concerns. 

It’s necessary to include Jermuk in the affected zone of the project, while the replies given to the questions about risks were substantiated and not of neglectful nature. 

We would like to make an appeal to the company investors, IFC and EBRD, so as they paid an attention to the compliance of principles of social and environmental responsibility by Geoteam Company where they make investments. 

We would like to draw your attention to the alarm signal about dismissals and hope that investors don’t want to intensify conflict situations and tensions.In this regard, we would like to ask to sort out and provide information whether Geoteam employees were sacked, if yes, what were the legal grounds of their dismissal.

December 14, 2011 at 16:28