Armenian Prime Minister Nikol Pashinyan has opened the Amulsar gold mine, a project stalled since 2018 by environmental protests. The government expects it to bring in $130 million a year in taxes, duties and royalties.
At a glance
- Lydian Armenia owns 75.5% of the mine and the Armenian government 12.5%.
- Economy Minister Gevorg Papoyan said the mine could lift Armenia's GDP by around 1.5%.
- Activists fear cyanide use could harm the Arpa and Vorotan rivers and Lake Sevan.
Background
Amulsar sits in Vayots Dzor province near the spa town of Jermuk. Construction began in 2016, but protesters blocked access from June 2018. A government-ordered review by consultants ELARD in 2019 found gaps in the company's environmental assessment but concluded the mine would not damage local groundwater.
What happened
Pashinyan opened the Amulsar gold mine at a ceremony at the site, OC Media reported on October 12. He called it a "success story" and said the government had worked to show Armenians that the project was theirs.
"Let us finally state that the mineral resources that turned into gold before our eyes today belong to Armenia," Pashinyan said.
A long road
The mine is operated by Lydian Armenia, a subsidiary of Jersey-registered Lydian International. Construction began in 2016 but stopped in June 2018 when local protesters blocked access. The blockade ended during the 2020 Nagorno-Karabakh war, and the government approved the mine in 2024.
Environmental activists have long warned that using cyanide to extract gold could affect the Arpa and Vorotan rivers and Lake Sevan, Armenia's largest freshwater reserve. Lydian says it applies international best practice.
What it means
Economy Minister Gevorg Papoyan said Amulsar is expected to generate $130 million a year in taxes, duties and royalties and could boost GDP by around 1.5%. Lydian Armenia holds 75.5% of the mine and the government 12.5%.
Our read
Outlook: neutral. A single new mine in Armenia is too small to move the global gold price.
What to watch
- First gold production figures from Amulsar.
- Environmental monitoring of nearby rivers and Lake Sevan.
- Whether local opposition to the mine returns.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2016: Construction of the Amulsar mine begins.
- 2018-06: Protesters block access and work stops.
- 2024: Armenia's government approves the mine.
- 2026-10: Prime Minister Pashinyan opens the mine.
Government Policies
The government holds 12.5% and approved the mine in 2024 after an independent review.
Mining Production
Amulsar adds a new gold mine in Armenia after nearly a decade of delay.
What could lift prices
- The government expects $130 million a year in revenue and a GDP boost of about 1.5%.
What could weigh on prices
- Environmental concerns over cyanide use have not gone away.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Armenia | High | The mine is expected to lift GDP by around 1.5% and bring in $130 million a year. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Positive | A long-stalled mine has finally opened. |
Who gains, who loses
- Armenian state budget: It expects $130 million a year in taxes and royalties.
- Environmental campaigners: The mine they fought for years has opened.
Other ways this could play out
- If the mine runs without environmental incidents, it could become a model for future projects in Armenia.
- If pollution concerns materialise, protests could return.
Price risks
- Gold prices affect how much revenue the mine and the state receive.
- Renewed protests could disrupt operations.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
