Kapan Ore Processing Plant CJSC has announced plans to increase the capacity of its beneficiation plant to 1 million tons annually, reconstruct Geghanush tailing dump, and repair the tunnel that diverts the Geghanush River.
The first public hearing on the preliminary Environmental Impact Assessment (EIA) application for this initiative took place on July 3 at the Kapan Cultural Center. Participants included representatives from local government, Kapan Ore Processing Plant CJSC, the project design company, residents of the community, and EcoLur’s media crew. The discussion was moderated by Kapan Mayor Gevorg Parsyan.
What Changes Does “Kapan Ore Processing Plant” CJSC Propose?
Vahram Avagyan, a representative of the design company NRM LLC, presented the proposed activities.
Although the beneficiation plant’s design capacity is 1 million tons of ore per year, it currently operates at just 600,000 tons. The company proposes increasing the operating capacity to the full design level to process the entire volume of ore extracted from the Shahumyan gold-polymetallic deposit, and to begin mining and processing ore from the Lichqvaz-Tey gold deposit. The latter’s production is projected at 100,000-300,000 tons annually.
The company has also completed a re-evaluation of the Shahumyan deposit's reserves. Following expert confirmation, a new operational project is planned that would scale up annual production to 1 million tons of ore.
Regarding the Lichqvaz-Tey mine, Avagyan stated that a positive conclusion has been issued for building a beneficiation plant based on the deposit, and that initial steps have already been taken in this direction.
Changes Planned for Geghanush Tailing Dump
From June 2028, the tailing dump walls of the Geghanush dump are planned to be developed using a centerline method - a design considered more environmentally safe and capable of meeting the plant’s storage needs until 2038.
Avagyan noted that, as of 2024, Armenian law prohibits the construction of upstream tailing dams.
The Geghanush tailing dump is located 1.5 km from the beneficiation plant and covers 32 hectares. As of April, it contained 8.3 million cubic meters of tailings and consists of two dam walls.
Avagyan explained: “From elevation 841.0m to the planned maximum of 871.0m, the tailing dam will be developed using the centerline method. This will increase its capacity from the current 11.7 million m³ to 17.4 million m³, ensuring safe storage of tailings until 2038.” He also mentioned that additional land will be needed for the reconstruction.
In response to EcoLur's questions about environmental risks, Avagyan said: "The EIA results show that at most, there will be proportionate increases in environmental impacts. There are no qualitative thresholds being exceeded. The plant’s technical capacity is sufficient, and no new investment front will be opened.
Kapan Community’s Demands
Kapan Mayor Gevorg Parsyan stated: “As a municipality, we are not against the plant’s development, as it has a significant social role in our community. But that doesn’t mean we can ignore risks or fail to minimize environmental impacts.”
The most important concern, according to the mayor, is the Geghanush tailing dump. He demanded a new in-depth assessment:
“The reconstruction is essentially an expansion of the tailing dump. Before drafting any new project, a detailed study of the current state must be conducted by an internationally reputable and technically competent organization. A proper assessment of the situation must be made, followed by well-grounded solutions for future use. We need to determine whether it's even feasible to increase the capacity to 17.4 million m³. This is crucial because we consider the tailing dump a high-risk facility and want all potential risks assessed and prevented from the outset.”
The mayor’s next proposal concerns the company’s corporate social responsibility (CSR) commitments. Currently, the company implements social programs worth about AMD 180 million annually in collaboration with the municipality. Parsyan proposed setting the minimum amount at AMD 300 million per year, stressing that any increase in production must also increase the company’s social impact.
“Our demands and proposals must be reflected in the project’s EIA report,” Parsyan emphasized.
Ownership and Permit Status
It’s worth noting that this mine and processing plant have been operated by companies from various countries over the decades. As of now, according to the State Register of Legal Entities, the operator is Kapan Ore Processing Plant CJSC, 100% owned by Armenian citizen Sasun Avetisyan. The company holds a soil management permit valid through 2050.
Details from the public hearing are available in the video.
July 04, 2025 at 15:55