Mining Sector Should Have Insurance: Lawyer

Geghanush, Syunik and Gndevaz communities raise the problem of insurance of mining risks, as “EcoRight” NGO President, Lawyer Arthur Grigoryan commented on the problem in his interview with EcoLur.

“The mining sector in Armenia has one main issue – absence of insurance. Mining is such an activity, which causes damage to others and this sector must have insurance,” Arthur Grigoryan said.

“Insurance in this sector is very important to calculate the harmfulness and social and environmental riskiness of its activities. Let’s say the company went bankrupt, what will happen with the tailing dump and the area used for mining, should it be derelict? Who should be liable for it – state, community, or who? Especially for these reasons the mining sector shall be insured from all kinds of economic and social risks,” Arthur Grigoryan said.

He brought the example of the tailing dump owned by Kapan Ore Processing Combine, where Geghanush village residents filed complaints and demanded compensation from “Dundee Precious Metals Kapan” Company for the pollution of their harvest and damage caused to their health.

“The owners of the combine have changed: “Polymetal International” purchased the shares of “Dundee Precious Metals Kapan” Company and it was supposed to transfer the commitments as well. From legal viewpoint, a chaos starts, when the previous mining company goes away leaving a huge amount of problems behind. In my opinion, the public sector shall force the companies to perform its commitments undertaken towards the communities and insure them from risks,” Arthur Grigoryan outlined.