In 2016, "Geghi Gold" LLC received a permit for Voskedzor gold-polymetallic mining in Syunik Region, signed a soil management contract. The company planned to start production from 2020 and to operate the mine until 2045. However, the mine was not developed, only exploration work was carried out.
Surik Tevanyan, Former Community Head of Nor Astghaberd, which was affected by the mine, said in his conversation with EcoLur: "The villagers were against it during the meetings, they did not allow the mine to be developed." According to him, the reason for being against the residents was the negative experience of mining activities already existing in the community. The development of Hanqasar copper-molybdenum mine by "Ler-Ex" LLC polluted the Geghi River as a result of which animals started dying. Kapan residents were against the operation of the mine, as the drinking water in Kapan is taken from the Geghi River, whereas the quality of drinking water would deteriorate with the operation of the mine.
Vasil Zakaryan, the administrative representative of Geghi residential settlement affected by the mine, mentioned that there is an alternative to mining in the village.
"There are opportunities to work, people just have to want to work and create. They have to be engaged in agriculture in the village. It is a good cattle-breeding country, we have rosehips, nuts, and herbs, we just need to collect them. We do not want mines to operate here, it is merciless to harm these gorges," he said.
The villagers are in favor of agriculture and cattle breeding, but they do not consider them profitable. "We can't sell our food in the market, we have to sell it at cheap prices… Can I buy wheat for 200 AMD and sell meat for 1000 AMD?" they mentioned the problems in the agricultural sector.
The residents expect the attention of the relevant authorities to identify problems in the sector and find solutions. Garegin Gabrielyan, Head of Department of Nature Protection, Agriculture and Economic Development Programs of Qajaran Municipality, which is affected by the mine, said that they have a plan to build a rural market. According to him, mining is a priority in the region, but it is necessary to technologically develop communities and small agriculture.
"Moreover, companies related to mining must develop and the materials needed by the companies must be produced on the spot. But a state approach is needed for that," Garegin Gabrielyan said.
About Liabilities of "Geghi Gold" LLC
"Geghi Gold" LLC, under its soil management contract, has pledged to provide the communities with 300,000 AMD per year for community development and 150,000 AMD for school supplies. Another 200,000 AMD, according to the community application, was to be provided as aids to socially vulnerable families. Provision of equipment for the repair of community roads is mentioned as non-tangible assistance.
According to the report published by the company within the framework of the Extractive Industries Transparency Initiative (EITI), "Geghi Gold" did not fulfill its commitments in the field of socio-economic development - charitable allocations for 2016-2017, nevertheless, the company fulfilled those obligations in 2018.
Garegin Gabrielyan told EcoLur that they hadn’t applied to the company for aids to socially vulnerable families. As for the provision of equipment for the repair of community roads, nothing like that had been performed. Garegin Gabrielyan noted that from the viewpoint of providing the necessary assistance to the community, it would be correct to involve the affected communities in drawing up socio-economic obligations.
"Companies' contracts should have a mandatory appendix on social obligations towards the affected areas. It will be much more effective and expedient for the communities to participate in the development of the social assistance program. The interests of the community should be considered there in line with the interests of the company and the state," he mentioned. Gabrielyan expressed hope that such a mechanism of community participation will be developed, as well as soil management agreements signed before 2014 will be reviewed and will include those appendixes.
According to the reports by "Geghi Gold" for 2016-2018, the company did not pay environmental fees. In 2016-2017 it did not pay money to the Environmental Protection Fund, nevertheless, it paid 12224500 AMD in 2018.
The company promised to create 300 jobs. Meanwhile, according to the reports by "Geghi Gold", the company employed 21 people in 2016, 28 - in 2017, and 24 people - in 2018.
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.
June 14, 2021 at 09:13