Armenia: Violation of the rights on health and health environment in the Amulsar gold project

Lydian International Limited is a publicly listed junior mining exploration company based in the UK, focused on its Amulsar Gold Project in Armenia. The International Finance Corporation (IFC) first invested in the company in 2007 to finance exploration activities and feasibility studies related to Lydian’s mineral resource properties in Kosovo, Armenia, and Turkey. This initial investment was followed by six additional investments and the exercise of five warrants. IFC invested a total of CAD 17.3 million in Lydian, corresponding to a 7.9% equity stake.

In July 2014, a complaint was lodged with the Compliance Advisor Ombudsman (CAO) by 148 local residents of Gndevaz in Armenia’s Vayots Dzor province, raising concerns about the project’s impacts on livelihoods, the environment, and community health.

The Amulsar mine project has raised serious health, environmental, and social concerns among local communities and experts. A 2018 sociological study found that 85.7% of respondents reported negative health impacts, including increased cases of asthma, lung diseases, dry skin, headaches, and insomnia. These issues reflect growing anxiety about the mine’s proximity to populated areas and its potential to worsen public health conditions.

Environmentally, the project poses significant risks to Armenia’s rich ecosystems and water resources. The mine site overlaps with protected areas, including an Emerald site under the Bern Convention, and is near the headwaters of the Arpa and Vorotan rivers. It also borders key national reservoirs, one of which connects directly to Lake Sevan—Armenia’s largest freshwater source. Any contamination could have devastating consequences. Additionally, uranium deposits in the area raise concerns about potential radioactive pollution.

Beyond environmental damage, the mine threatens local livelihoods by taking over agricultural land, risking pollution for farms and water producers, and changing Jermuk’s identity from a spa town into a mining hub due to incoming migrant labor and social disruption.

In 2017, IFC divested from Lydian. As stated: “We seek to deploy our capital where it is needed most to foster sustainable economic development. IFC is therefore no longer overseeing mine development.”