Author: Hovik Karapetian

The AIM-traded firm said the deal, worth $55.4m, is between Chaarat and Gold Mining Company – a known entity in the Armenian mining space.

It said the Kapan Mine had been functional since the 1960s, and was known for its polymetallic ore body, producing copper and zinc concentrates as well as by-products including gold and silver.

Chaarat took ownership of the Kapan Mine in 2019, and since then, there had been significant improvements in the mine’s operational performance.

It consistently met production guidance for between 50,000 and 65,000 gold equivalent ounces annually under Chaarat’s administration.

The mine – Chaarat’s sole operating asset – brought in EBITDA of $22.7m in 2021 and $12.6m in 2022.

However, its financial performance in the first half of 2023 was impacted by a persistently high Armenian dram against the dollar, as well as reduced production.

The company said the sale’s consideration consisted of $55.4m, including $5m in cash and the remaining being offset by intra-group payables due to Chaarat Kapan.

No adjustments would be made for debt, working capital, or other obligations.

The board said completion remained contingent on a number of conditions, including approvals from Chaarat shareholders, Ameriabank, the Armenian Competition Protection Commission, and the buyer’s shareholders.

Chaarat Gold justified the sale by highlighting its commitment to enhancing the Kapan Mine’s value over the years.

Despite geopolitical challenges, including hostilities with neighbouring countries and the indirect effects of the Ukraine conflict, the firm said it managed to uphold its operational performance.

However, the appreciation of the Armenian dram significantly affected its financial performance, with the sale set to allow Chaarat to concentrate on developing assets in Kyrgyzstan, and consider other external merger and acquisition opportunities.

Post-sale, the proceeds would bolster Chaarat’s balance sheet, reducing its liabilities by $39m and offering a cash influx of $5m to support its ongoing projects, especially the Tulkubash project.

With the sale, Chaarat would transition from a producer to a developer, as it planned to invest resources in its larger, low-cost development assets while simultaneously seeking funding for the ventures.

Chaarat’s said its focus post-sale would be on its gold development assets, which had a combined book value of $82.5m and a potential production capacity of more than 350,000 ounces of gold annually.

“The proposed sale allows Chaarat to focus on its growth pipeline in the gold sector with the aim of developing lower cost and higher value options within its portfolio,” said chief executive officer Mike Fraser.

“It accelerates our strategic objective of developing the Tulkubash project and evaluating opportunities for inorganic growth options.”

At 0908 BST, shares in Chaarat Gold Holdings were up 10.22% at 7.44p.

Reporting by Josh White for Sharecast.com.

A report I issued this week concluded that a genocide is underway against 120,000 Armenians living in Nagorno-Karabakh, a de facto autonomous region located in Azerbaijan also known as Artsakh. This genocide does not feature crematories or machete attacks. Rather, the blockade of food, oil, medicine, and other essential goods to a protected group should be considered a genocide under Article II (c) of the Genocide Convention, which addresses “Deliberately inflicting on the group conditions of life calculated to bring about its physical destruction.”

It is time for the United States and other world powers to act. There are avenues available both to halt the current situation and to pursue justice and accountability.

Background on the Lachin Corridor Blockade 

On the morning of Dec. 12, 2022, individuals without formal ties to Azerbaijan’s state apparatus blocked the Lachin Corridor, a 5-kilometer mountain road that connects Nagorno-Karabakh to Armenia, restricting access to food, medical supplies, and other essentials for the 120,000 Armenians living in Nagorno-Karabakh.

Subsequently, on Feb. 22, 2023, the International Court of Justice (ICJ), which is currently considering the case Armenia v. Azerbaijan related to the International Convention on the Elimination of All Forms of Racial Discrimination, granted Armenia’s request for the indication of provisional measures and ordered Azerbaijan to “take all measures at its disposal to ensure unimpeded movement of persons, vehicles, and cargo along the Lachin Corridor in both directions.”

In response, on April 23, Azerbaijan security forces installed a checkpoint partially blocking the Lachin corridor, claiming that it was implementing the Court’s order. However, on June 15, Azerbaijan escalated the situation, completely sealing off the Lachin Corridor — the only access between the region’s capital, Stepanakert, and Armenia. Since then, Azerbaijan has banned the International Committee of the Red Cross (ICRC) and Russian peacekeeping forces from delivering humanitarian relief. On July 6, the Court reaffirmed its Feb. 22 order, but Azerbaijan has failed to comply.

Genocide under Article II (c) of the Genocide Convention 

Many might not think of deprivation of food and essential supplies or of a blockade alone as crossing the threshold of genocide, but such actions most certainly can qualify as “conditions of life calculated to bring about physical destruction” of a group, as required by Article II of the Genocide Convention. Recently, the U.N. Commission on Human Rights in South Sudan pointed to starvation techniques as a possible indication of genocide.

Some also might not think that an attempt to bring about those conditions for only part of a group (i.e., only the Armenians in Nagorno-Karabakh, not the entire Armenian population) constitutes genocide, but the Genocide Convention answers that, too. Article II of the Convention clearly defines genocide as “acts committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group, as such” (emphasis added).

Though predicated on a different set of State obligations, the ICJ decision in February confirmed the occurrence of the material elements of genocide that are set out in Article II (c) of the Genocide Convention: “Deliberately inflicting on the group conditions of life calculated to bring about its physical destruction.” The Court’s preliminary findings considered “plausible” that the Lachin corridor blockade produced “a real and imminent risk” to the “health and life” of an ethnic group, “the Armenians living in Nagorno-Karabakh.”

Genocidal intent in Nagorno-Karabakh can be further deduced from the actions of Ilham Aliyev, the president of Azerbaijan. President Aliyev has knowingly, willingly, and voluntarily blockaded the Lachin Corridor, even after having been placed on notice for the consequences of his actions by the ICJ. In doing so, he has deliberately blocked the provision of life’s essentials to the Armenians living in Nagorno-Karabakh, and openly disobeyed the legally binding orders of the Court.

Azerbaijan’s leadership dangerously denies the facts on the ground. Hikmet Hajiyev, an assistant to Aliyev, told the Associated Press that my report “is biased and distorts the real situation on the ground and represents serious factual, legal and substantive errors.”

The blockade is recognized by President Aliyev, and, credible reports indicate that Nagorno-Karabakh is running out of food, and that essential goods and services such as fuel and medication are becoming — if they are not already — inaccessible. A group of four U.N. experts, including three Special Rapporteurs, on Aug. 7 issued an appeal to the government of Azerbaijan to lift the blockade. “The blockade, obstructing the sole road connecting Nagorno-Karabakh to Armenia for the past seven months, has left the population facing acute shortages of food staples, medication, and hygiene products, impacted the functioning of medical and educational institutions, and placed the lives of the residents – especially children, persons with disabilities, older persons, pregnant women, and the sick – at significant risk.”

The Obligation of State Parties to the Genocide Convention to Prevent Atrocities

The International Court of Justice ruled in February 2007 in the case Bosnia and Herzegovina v. Serbia and Montenegro that State parties to the Genocide Convention have the duty to prevent and to punish the crime of genocide. In this case, the ICJ decided that states must not wait until the perpetration of genocide commences: the point of the obligation is to prevent or attempt to prevent the act before it actually occurs.

Notably, the blockade has been discussed by political leaders – and even the U.N. experts — only as a “humanitarian problem,” without analyzing genocidal circumstances that may surround the event. For instance, U.S. Secretary of State Antony J. Blinken spoke with Aliyev on July 29 and expressed “deep concern for the humanitarian situation in Nagorno-Karabakh,” stressing “the need for all parties to keep up positive momentum on peace negotiations.”

Yet, the duty to prevent genocide does not require proof that the Lachin blockade produced the actual “physical destruction” of the members of the protected group. Under Article II (c) the Genocide Convention, the creation of the conditions is the material element of the crime. A similar conclusion on the war crime of starvation was reached in 2020 by the U.N. Commission on Human Rights in South Sudan, which stated that “[t]he crime of starvation does not require that victims die from starvation, only that they should intentionally be deprived of objects indispensable to their survival.”

Instead, the duty to prevent requires that states take immediate action to stop a blockade that may lead to or itself constitute genocide — in this situation, to reestablish the provision of essentials goods and services to Nagorno-Karabakh.

There are no central international authorities competent to adopt such measures. And as we have seen to date, an ICJ ruling on genocide, or targeted sanctions and other classic diplomatic tools, will not be quick or forceful enough to alter Azerbaijan’s conduct or the physical circumstances of Armenians at risk.

In the short term, implementing the duty to prevent will depend on the political will of States already working to manage and resolve the conflict. Russia, which is responsible for peacekeeping in Nagorno-Karabakh, and the United States, which is promoting negotiations between Armenia and Azerbaijan, are State parties to the Genocide Convention, as are all members of the European Union. They are uniquely equipped with diplomatic and material resources to compel Azerbaijan to lift the blockade. Furthermore, tensions over the war in Ukraine should not result in Armenians becoming collateral victims.

In her magisterial book, “A Problem from Hell,” Samantha Power described how U.S. policymakers have, time and again, evaded their responsibility to prevent or stop genocides because America’s “vital interests” were not considered imperiled. It took 106 years, but President Joe Biden became the first U.S. president to label the 1915 events perpetrated by Ottoman authorities, when 1.5 million Armenians “were deported, massacred, or marched to their deaths in a campaign of extermination,” as the “Armenian genocide.” Now, a genocide is underway against 120,000 Armenians living in Nagorno-Karabakh, and fortunately they are still alive. It is time for the United States and other world powers to act. There are avenues available to both halt the genocidal conditions being imposed, and to pursue justice and accountability.

Secretary of State Blinken, in particular, has the power and authority to spearhead a collective response. In 2022, he explained at the U.S. Holocaust Memorial Museum that one of his responsibilities “is determining, on behalf of the United States, whether atrocities have been committed. It’s an immense responsibility that I take very seriously, particularly given my family’s history.” He also identified intent to destroy a group and hate speech as part of a path to genocide in the situation of the Rohingya in Burma/Myanmar, stating that it “mirror[s] in so many ways the path to the Holocaust and other genocides.”

With a similar path to genocide against the Armenians in Nagorno-Karabakh clearly evident, it is time for Blinken to put words into action. U.N. Secretary-General António Guterres has expressed his deep concern at the deteriorating situation, and called for urgent steps to facilitate access for the delivery of humanitarian assistance. The United States, Russia, EU members, other State parties to the Genocide Convention — and all U.N. member States, for that matter — are presented with a historic opportunity to do so, and to stop the tragic cycle of the Armenian people’s destruction. The window for implementing effective prevention measures is rapidly closing. States must act now.

IMAGE: A European Union observer looks in the direction of the Lachin corridor, the Armenian-populated breakaway Nagorno-Karabakh region’s only land link with Armenia, on July 30, 2023. Karabakh has been at the centre of a decades-long dispute between Armenia and Azerbaijan, which have fought two wars over the mountainous territory. (Photo by KAREN MINASYAN/AFP via Getty Images)

t’s the hottest month of the year in many destinations and the last chance for people to squeeze in some summer travel. But with scorching temperatures and overcrowded destinations becoming the norm, where are some good places for a holiday in August?

While that very much depends on what you’re looking for, there are plenty of amazing locations that shine this month. Those with an adventurous spirit might want to consider Saudi Arabia – the kingdom’s mountainous areas are glorious at this time of year. In jam-packed Europe, there are still some destinations worth considering, like pocket-friendly Riga in Latvia.

And if you can handle crowds for a few days, head to Scotland where the fairy-tale-like capital comes into its own when hosting the annual Fringe festival, and remote beaches and lush countryside await as the perfect post-city-break escape.

Here are six of the best places to travel to in August.

Latvia’s capital comes to life with open-air concerts, markets, pop-up stalls and firework displays in August. Photo: Kseniia Samoylenko / Unsplash

If you want an affordable European holiday in August, head for Riga. The largest of the Baltic capitals has a colourful old town, canal-lined parks and a wealth of culture and history. The warmest month of the year in Latvia comes with pleasant temperatures that hover around 23°C, and the country’s capital comes to life with open-air concerts, markets, pop-up stalls and firework displays. And unlike many other cities in Europe, it’s yet to be overrun by summertime tourists.

Abha in Saudi Arabia is surrounded by juniper forests. Photo: Wikimedia Commons

While much of the Middle East is too hot to handle in August, Saudi Arabia’s Abha is an exception. Surrounded by craggy mountains and dense juniper forests, the capital of the Asir region is the place to go for outdoor hikes, mountain exploration and overnight camping.

It’s also where you’ll find the country’s first national park, stretching from the Red Sea coastline to the kingdom’s highest peak. The Asir Summer Festival runs until September 1, bringing music, concerts, art and culture to the misty mountain landscape.

Scotland’s capital hosts the annual Fringe festival every August. Photo: Luis Mayoral / Unsplash

Scotland’s pretty capital comes alive in August when international crowds descend upon its hilly streets for the annual Fringe festival, the world’s largest performance arts festival that booms with comedy gold. While it’s certain to be crowded, it’s well worth spending a few days in the capital to soak up the festive atmosphere.

Afterwards, an easy train ride west will take you to Glasgow, Scotland’s biggest city known for its shopping, culture and live music scene. Or head north where you’ll find uncrowded beaches and glasslike lochs – the perfect antidote to your time in the big city.

The Bazaruto Archipelago has stunning beaches. Photo: Minor Hotel Group

As the end of southern Africa’s winter spreads across the continent, the six islands of the Bazaruto Archipelago in Mozambique are getting into their stride. August sees the often-sweltering temperatures become clement and the rains stay away.

It’s the perfect time to unwind on the region’s famed beaches or take to the coral-laced waters for snorkelling and scuba-diving. It’s also a good place to spot humpback whales as they migrate from Antarctica to East African waters at this time of year. If you prefer to stick to dry land, try horse-riding, birdwatching and sand dune safaris.

Rio’s mountains, city and sea are bathed in pleasantly warm temperatures in August. Photo: Alexandre Macieira Riotur

With average temperatures hovering between 18ºC and 25ºC, Brazil’s party city experiences winter in August – which means pleasantly warm days. It’s the ideal time to take in Rio de Janeiro’s top landmarks without having to fight against a blazing sun.

Head to the Christ the Redeemer statue and Sugarloaf Mountain, then visit Tijuca National Park and stroll along Copacabana Beach, where you probably won’t be the only one humming Barry Manilow’s 1970s hit.

To escape sun-worshipping throngs, stay near Leblon Beach where luxury hotels and high-end restaurants come with smaller crowds than at other beaches in the city.

August temperatures hover just under 30ºC in Yerevan. Photo: Armenia Travel

With medieval architecture and striking natural landscapes, Armenia offers travellers an indulgence of history and an overload of nature, not to mention wallet-friendly prices.

The capital city, Yerevan, enjoys sunshine-filled summer days with August temperatures hovering just under 30ºC – with plenty of parks and outdoor dining to make the most of the weather. It’s the place to sample one of the oldest cuisines in Europe, with dishes featuring herbs, wildflowers and regional spices.

Summer is also a great time for hiking in Armenia’s more mountainous areas where conditions are cooler and less crowded.