EcoLur
Hakob Sanasaryan, Chairman of Greens Union of Armenia, has addressed a letter to Thomas Lubeck, IFC Regional Manager for the South Caucasus in regard with Amulsar gold mining project.
“Replying to the letter by Greens Union of Armenia you mention that you want to develop sustainable mining in Armenia by funding private companies, which will assist in creating working places and growth in Armenian economy, while in regard with Amulsar you write that mine development won’t undermine water resources, but it’s not like that.
Getting exempt of main taxes, the mine developers develop mine demonstrations with low concentration of metals as mines, which will have disastrous consequences for such a volcanic country as Armenia is.
What about Amulsar, it’s part of the program to grab Armenia and to make it unsuitable for living.
Under press publications, the main shareholders of Lydian International striving to develop Amulsar mine are members of World Banks, Including International Finance Corporation, i.e. the bank you represent. Other banks have also strived to fund this project (Unicredit, BNP, Rand Merchant Bank, ING, Raiffeissen, Societe General, Natixis, Nedbank, Standard Bank, Citibank). The mining party states that both the company, and the adjacent communities and Armenia will benefit from Amulsar project. Nevertheless, this statement is partially true.
The analysis shows that exclusively the company will benefit from this project, while communities and Armenia will incur irreversible losses.
Amulsar project says that the reserves of Tigranes pit ore make up 56.43 million tons with concentration of 52.66 tons of gold and 210.5 tons of silver. Under estimates, at best 45 tons of gold and 180 tons of silver can be extracted from this ore costing around 2.5 US $billion, if the cost of other rare metals account for, let’s say US $ 500 million, the total income of the company will make up US$ 3 billion, if it does.
Now let’s see what kind of taxes “Lydian International” should have paid to the state for mining and processing such amount of ore (taxes that the company is exempt of with the help of laws contradicting to the interests of people dictated form abroad).
1. Around 56 million tons of crushed ore leached with cyanide classified as waste of first category, where the company should have paid US$6.72 billion to the state for deploying them in environment, if not the non-substantiated and false laws in this field,
2. Mining will result in 222 million tons of barren rock, even if this waste containing heavy metals is classified as third category, the company should have paid US$ 2.66 million (222000000X12), if not the non-substantiated and false laws in this field,
3. Mine area is 80 ha, heap leach facility – 147 ha, the area to be occupied by barren rock is 161 ha. This 388 ha area will lose its natural function and will be source of environmental pollution for thousands of years.
4. In case Amulsar projet is implemented, the vegetation, wildlife and household animals will be endangered, pastures and plough areas will be polluted… Vorotan River, Spandaryan reservoir, and consequently Lake Sevan…
As you can see, in case the mine is developed, the money to be paid for two types of wastes only would have accounted for 9.38 billion USD, when the company may make up only US$ 3 billion. That is, after bringing Amulsar mine into taxation field, it won’t even cover its costs.
July 03, 2014 at 17:57