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Geoteam Welcomes IFC and EBRD Review of Amulsar Gold Project
Geoteam worked with experts from the International Finance
Corporation, part of the World Bank Group (IFC) and the European Bank
for Reconstruction and Development (EBRD), who visited the Amulsar
Gold Project area last week to perform their annual review of the
project development.
IFC and EBRD are both shareholders of Lydian International Limited –
the parent company of Geoteam CJSC, which holds the exploration
licenses of the Amulsar Gold Project in Armenia.
Both IFC and EBRD conduct annual supervision visits to assess the
project’s environmental, social and technical components.
Amulsar has concluded the exploration phase. After the final mining
right is granted, and all environmental and social mitigation measures
are in place, Geoteam plans to start construction of the mine in
2015. The initial capital investment according to the Feasibility
Study will be $ 426 million.
The IFC and the EBRD supervision teams consisted of environmental,
social development, geology, and mining specialists. They held working
meetings with Lydian and Geoteam, visited the Amulsar site, the
community of Gndevaz as well as the town of Jermuk. They assessed the
current exploration rehabilitation activities, social development
projects, met with the community members, and took a site tour.
Experts of international consultancies who had taken part in the mine
design, the Environmental and Social Impact Assessment and other
technical support also took part in the site visit.
The company plans to disclose the Environmental and Social Impact
Assessment (ESIA), a requirement for international funding, in
November 2014. The project feasibility study and ESIA will inform
stakeholders and help them engage in more useful public discussions of
the environmental and social considerations.
`IFC supports a wide range of projects in different sectors that help
create jobs and contribute to the growth of Armenia’s economy,’ said
Karsten Fuelster, IFC Principal Investment Officer. `As part of that
effort, we seek ways to foster a sustainable mining sector in
Armenia. Once given permission to proceed, the Amulsar project, IFC’s
only investment in this sector in Armenia, is expected to have many
important economic benefits for the country, including generating
revenue for the state and boosting employment in rural areas. IFC
applies the highest environmental and social standards to its clients
and the projects it finances, including the Amulsar project. One way
we do this is through regular monitoring trips, like the one we
concluded last week in Armenia. We will continue to closely monitor
the project to make sure it complies with IFC standards throughout its
implementation.’
`The EBRD is committed to enhancing the economic development in the
countries where it invests and the Amulsar project has the potential
to have a positive impact on the region and the country. We are
committed to ensure that our projects meet the highest standards of
environmental and social performance. Visits such as this week’s play
an important role in reaching this goal. We are encouraged by the
stakeholder engagement and social and environmental works that have
been performed by Lydian and Geoteam. The environmental and social
impact assessment will be the next important step for the development
of the project in line with international best practice. We look
forward to reviewing the ESIA to determine whether it meets the
requirements of our Environmental and Social Policy, and to be
appraised of the outcomes of the extensive public consultations the
company is planning following disclosure of the ESIA,’ said Sam
Walker, Senior Environmental Specialist at the EBRD.
`Geoteam and Lydian management would like to thank IFC and the EBRD
teams for the visit and reaffirm the Company’s’ commitment to meet all
environmental and social standards and requirements set by the
`Equator Principles’ as well as IFC and EBRD environmental and social
requirements. Geoteam and Lydian will work towards ensuring that the
Amulsar Gold Project becomes an exemplary mining operation in Armenia
that benefits the country and the communities economically and sets a
high standard for environmental management’, Hayk Aloyan, Managing
Director of Geoteam stated.
When the construction of the mine starts in 2015, Amulsar will employ
around 1,300 people at the peak. Around 770 people will be employed
permanently during more than 10 years of planned mine life.
Copyright © 2014 Geoteam CJSC, All rights reserved.