

“EcoLur” Informational NGO has launched the "Liability of Non-Operating Mining Companies in the EITI Process" project, which aims to promote the increase in the liability of companies having been issued metal mining permits, but not operating them, for performing the obligations stipulated in soil management contracts and other other mining licenses, to promote their responsibility and accountability towards the impacted communities.
“Multi Group” Concern has the right of soil management for No. 5 and No. 8 ore bodies of Mghart Gold Mine. Mghart mine has not been developed for several years. EcoLur sent an enquiry to the soil manager, which says:
“1. What are the reasons for not developing No. 5 and No. 8 ore bodies of Mghart Gold Mine, Lori Region, handed over to your company?
2. Is the mine planned to be re-developed, if yes, starting from when?
3. Has the target significance of the land areas used by the Company been changed, if yes, how many hectares have been changes for mine and how many hectares have been changes for the company's infrastructures?
4. Does the company intend to resign soil management contract No. PV-213 dated on 20.12.2012 and prescribe provisions on providing social assistance to affected Odzun community (Mghart residential settlement) (according to the requirements of Article 54 (3(9)) of RA Subsoil Code)?
5. Please, indicate the support provided to the affected community over the years under charitable programs.
6. What measures does the company take to control mineral water and tailing dump leaks, as well as to prevent atmospheric air and soil pollution? ”
In response to the enquiry, "Multi Group" Concern Acting Director Arayik Kesoyan’s letter N37/31.07.2020 says:
1) A new project has been drafted for the mine development, which is still in the stage of expert assessment since 2018. The industrial development project of Mghart gold mine has been drafted for the extraction of ore from ore bodies No. 6, 6a, 62, 64, 67, 7a, 75, 76 and 8 prospected as a result of geological and economic re-evaluation of the Central section of the mine, where as ore body No. 5 will not be developed due to environmental conditions.
2) Mghart gold mine will be developed after the accomplishment of project expert assessment. 3) The land areas occupied by mountain works make up 40 hectares, and their significance has been changed to the industrial one. The mountain lease area from the mentioned land areas will make up 25 hectares.
4) Upon the resumption of the works, the soil management contract No. 20.12.2012, PV-213 will be resigned, where provisions will be prescribed to provide social assistance to affected community of Odzun (Mghart residential settlement) (according to the requirements of Article 54 (3(9)) of RA Subsoil Code).
During the operation of the mine, the company has always supported Mghart community; a solution has been given in case of any questions raised. In particular, every year the village roads were repaired after the floods, we participated in the gasification works of the village school, gas stoves were set up in the classrooms. The village house of celebrations is currently being renovated, for which 2 million AMD have been provided. Since 2005, 2-4 million AMD has been paid annually the budget of Mghart (Odzun) community for leased lands for geological prospecting and mountain works.
In 2018, with the funds of the company, the sources of all the springs entering the village from the forest called "Yelkut" were cleaned, new catchment manholes were built. A 50-meter-deep well with a low water flow was drilled in the same area to provide drinking water to the village.
The mine will be developed in an opencast manner. The ore is processed in a gravity method, i.e. there is no chemical dressing. The open mine is provided with a natural flow of surface water. The drainage will be done from the bottom of the open pit, through the drainage stream, which will have a flow plane with a slope from north-west to south-east. There are no old water-covered ditches or other ponds (rivers, lakes, artificial ponds), such as landslides or karsts, in the area of the open mine. The use of technical water is entirely irreversible water use.
According to sanitary standards CH 245-71, Mghart gold mine is a second-class enterprise with a sanitary protection zone of 500 m. The tailing dump will be built in the gorge on the high terrace on the left bank of the gorge. Geological studies have shown that there is no groundwater in the area.
The tailing dump will be filled with gravity-dressed ore tails. The gravitational method extracts 85-90% of the total amount of sulfides, and 75-80% of the gold in the ore. During the operation of the tailing dump, there will be no acid drainage from the rocks, as it will be permanently covered with water, there will be no oxidation zone. The tailing dump will serve for about 10 years, afterwards it will be closed.
This material has been prepared within “Liability of Non-operating Mining Companies in EITI Process” project impletmened by EcoLur with the USAID support within the frames of “Engaged Citizenry for Responsible Governance” project implemented by Transparency International Anticorruption Center.

This article is made possible by the generous support of the American People through the United States Agency for International Development (USAID). The contents of this article are the sole responsibility of the authors and do not necessarily reflect the views of USAID or the United States Government.
August 06, 2020 at 14:29
