

Southern Armenia is rich in non-ferrous and precious metals, with over ten companies engaged in mining. This article briefly presents the key operational characteristics of Kapan Mining and Processing Plant CJSC and highlights its environmental and social challenges.
Main Facilities
The company includes:
- A processing plant located in Kapan
- Shahumyan polymetallic deposit
- Geghanush tailings storage facility
The mining area covers 378.6 hectares, with 17.86 million tons of ore reserves. The permitted annual extraction rate is 600,000 tons of ore. The company’s operating license is valid until April 1, 2050.
Ore Composition
The extracted ore contains gold, silver, copper, zinc, and lead, with trace elements such as cadmium, indium, tellurium, selenium, sulfur, and gallium. The enrichment plant also processes 150,000 tons of ore extracted by Lichqvaz CJSC.
Environmental Impact
The air pollution impact zone includes Shahumyan village, Kapan town, and partially Geghanush village. In 2017, the company received a permit for the maximum allowable emissions of harmful substances into the atmosphere. Its emissions contain 20 types of pollutants, including:
- Ore, lime, wood, and xanthate dust
- Hydrocarbons, nitric, sulfuric, and hydrochloric acid vapors
- Manganese, iron, carbon, nitrogen oxides
- Sulfur dioxide, fluorides, and oil aerosols
In March 2023, the company was granted a water use permit (N 0052-23), allowing it to withdraw 1,966,890 cubic meters (62.4 liters per second) of water annually from the Voghji River.
As of March 31, 2023, Geghanush tailings storage facility had accumulated 7.35 million cubic meters of tailings. A new project planned for 2024 will increase the tailings capacity to 11.73 million cubic meters, with the tailings area expanding to 32 hectares (40 hectares including pipelines and infrastructure).
According to the study by the Hydrometeorology and Monitoring Center of RA Environment Ministry in 2022, soil contamination in Kapan exceeded permissible concentrations by:
- Vanadium: 1.1–2.2 times
- Copper: 107.7–213.3 times
- Zinc: 7.7–23.7 times
- Chromium: 1.7–15.7 times
- Nickel: 9.3–17 times
- Arsenic: 6.5–12 times
- Lead: 1.5–10.7 times
Heavy metal concentrations in river sediments (Voghji, Artsvanik) also exceed permissible limits, and both rivers are classified under the highest (5th) pollution level due to mining activities.
Additionally, the Voghji River is continuously polluted by:
- Acid drainage from the abandoned Kapan Central Mine
- Industrial waste and leaks from Kapan Mining and Processing Plant and Zangezur Copper-Molybdenum Combine
The pollutants include molybdenum, manganese, cobalt, potassium, and mercury. Some persistent background pollution sources are difficult or impossible to identify.
Social Responsibility
The company’s workforce in recent years:
- 2020: 1,037 employees
- 2021: 1,012 employees
- 2022: 1,021 employees
- 2023: 907 employees
Most employees are from Kapan, Goris, Qajaran, and Sisian.
According to Extractive Industries Transparency Initiative (EITI) reports, the company provided:
- 223.7 million AMD in 2020
- 104.55 million AMD in 2021
These funds supported community development, infrastructure, regional authorities, and local residents.
Under the Social-Economic Cooperation Framework Agreement (CHK 11-1-031), the company contributed 47.66 million AMD to Kapan’s municipal budget in 2021.
February 11, 2025 at 15:15