RA Ministry of Territorial Administration and Infrastructures (TAI) to make contributions of 2% of the royalties paid by the metal mining companies to the budgets of the affected communities for the sustainable and continuous development of the communities. It is proposed to distribute this contribution among the affected communities of the given mining company and the affected communities of the mines operated by other mining companies paying royalties in Armenia in the 50/50 ratio.
In this regard, the Ministry has put into circulation the draft resolution "On Approving Making Amendments to the Law on the Budget System of the Republic of Armenia", "On Making Amendments to the Law on Local Self-Government", "On Making Amendments to the Law on the Budget System of the Republic of Armenia" and "On Making Amendments to the Law on Local Self-Government".
It should be noted that in the meetings with EcoLur, the affected communities have repeatedly raised the need to make contributions to the communities from the royalties paid by the soil mangers, as the funds provided to the communities for environmental projects from environmental taxes are very small. Until now, the affected mining communities have also used the funds provided by the companies for the socio-economic development of the community under the soil management contracts. However, the data published within the EITI framework, as well as "Responsibility of Non-Operating Mining Companies in the EITI Process" project implemented by EcoLur for 2020-2021 revealed that the contribution obligation is not stipulated in the contracts of all companies, where even some companies, which had such contractual obligations either over-fulfilled or under-fulfilled their obligations. These contributions often did not match the real needs of the community; in fact, they did not contribute much to the overall economic and social development of the community.
In case of adoption of the legislative package, it will enter into force on January 1, 2023.
July 29, 2021 at 15:50