EcoLur
The Armenian Government adopted resolution 749 – N dated on 18 July 2013, which says that Arpa-Sevan Tunnel is immediate impact zone of Sevan catchment basin in a distance of 3000 meters. In line with RA Law “On Lake Sevan” (Article 10) any ore processing facilities are banned to be constructed in the immediate impact zone. Here a question arises whether or not the territory of heap leach facility for Amulsar ore processing is included in this zone. If it does, the company will have to change the territory for the second time. Reminder: the assets of Amulsar gold mine are owned by Lydian International Ltd, which subsidiary in Armenia is “Geoteam” CJSC.
Under our, still unspecified information, a working group has been established by Urban Development Ministry, which will give answers to the problem of permissible and impermissible borders of Sevan catchment basin.
Now with a reference to http://www.proactiveinvestors.co.uk/companies/news/59397/lydian-boss-coughlin-heap-leach-plant-will-not-affect-lake-59397.html, it should be noted that the government resolution sent the share price down 30%. And here chief executive Tim Coughlin made a public statement that the proposed heap leach facility will have no impact on the lake and that the Armenian government, as well as local authorities, remain supportive of the project. "We have some work to do in the short-term to settle matters related to our mine site design and continue to finalise our new feasibility study," chief executive said and assured the shares started regaining.
Another message was from the UK Ambassador to Armenia Katherine Jane Leach, who referred to Amulsar project at the meeting with Nature Protection Minister Aram Harutyunyan, “The UK Ambassador talked on Amulsar gold mine asking the Minister to support the investor company in this matter, the press service of Nature Protection Ministry reports.” Taking into consideration that the mission of Nature Protection Ministry is not to support investors but to protect nature, this message is more than evident.
What about short-term perspective mentioned by Lydian chief executive, the perspective may turn out not to be so short-term. Thus, Nature Protection Ministry gave a positive opinion of environmental expertise to Amulsar mining project dated on 31 July 2012, and consequently, as of 9 August 2013 it is expired. The company hasn’t performed the requirements laid down in the positive opinion, for example, the requirement of compliance of heap leach facility to RA Law “On Lake Sevan”. Whether it means that the government sends its message in the form of resolution 749-N?
August 09, 2013 at 15:13