Amulsar Gold Mine Starts Operations After $750M Investment

Armenia's Amulsar gold mine formally began operations on 10 October 2026, when Prime Minister Nikol Pashinyan and cabinet members attended a launch ceremony near the site in Vayots Dzor province, about 13 km from the resort town of Jermuk. Public and private investment in the project exceeds $750 million, ARKA reported, and the government holds a 12.5% stake in the operator, Lydian Armenia.

The start comes eight years after protests halted work on a deposit with proven reserves of 73 tonnes of gold and 294 tonnes of silver. Economy Minister Gevorg Papoyan said the mine should pay $130 million a year into the budget in taxes, duties and royalties once fully operating, and could lift gross domestic product by at least 1.5% annually, Armenpress reported.

What the government and operator expect

Papoyan said more than 210,000 ounces of gold a year are planned at full operation. Armenpress reported that the roughly $750 million invested includes $150 million lent by Ameriabank under a state budget guarantee. ARKA puts expected annual tax revenue above $100 million; the minister's figure also counts duties and royalties.

Hayk Aloyan, Lydian Armenia's founder and chief executive, said the first gold was cast on 16 September and that the gold and silver alloy is exported to Switzerland for refining. He expects output worth about $100 million in 2026 if regular production holds to year-end, then about $860 million to $900 million a year depending on the gold price. The company employs 1,500 people, about 30% of them local, and holds a 12-year licence, though Aloyan expects a project life of about 40 years.

Years of delay and a divided debate

Construction began on 19 August 2016, with capital works then costed at $370 million and due to finish in 2018, ARKA reported at the time. Work stopped in June 2018 when protesters blocked access to the site, a blockade that ended during the 2020 war, OC Media reported. Activists feared that cyanide used to extract gold could pollute the Arpa and Vorotan rivers, Lake Sevan and the Jermuk springs.

A review by the Lebanese firm ELARD, released in August 2019, found omissions in the earlier impact assessment but concluded that the mine would not damage groundwater or the Jermuk springs. Pashinyan let the project proceed that month while activists remained unconvinced, Eurasianet reported. At the ceremony he said: "Today, we are concluding the long saga of Amulsar, and this is undoubtedly a success story," according to ARKA.

Critics disagree. On 10 October, civil society representatives condemned the launch as a threat to environmental security and demanded a halt to operations, a new impact assessment and a review of state support, OC Media reported, days before Yerevan hosts the COP17 biodiversity conference. Gnel Sanosyan, the government's representative on Lydian Armenia's board, said construction had been monitored by numerous companies and international experts.

A second pillar for mining

Gold joins an expanding mining sector. Copper concentrate output rose 27.6% to 203,113.1 tons in January to July 2026 and molybdenum concentrate rose 25.2% to 10,403.5 tons, according to official data reported by ARKA (see CBJ's report). Economist Suren Parsyan told Armenpress that Amulsar could become Armenia's second-largest mining company, comparable to the Zangezur Copper Molybdenum Combine.

Sanosyan said Lydian Armenia will give $7 million to $9 million a year to Jermuk, Vayk and Sisian and $5 million for a planned Jermuk National Park, under the community development agreement reported by CBJ in September.

What to watch

• Whether output reaches the roughly $100 million projected for 2026, and how fast the mine approaches 210,000 ounces a year.
• Published water monitoring data for the Arpa and Vorotan rivers and the Jermuk springs, and any response to calls for a new assessment.
• Disbursement of the community and national park money.
• Budget receipts against the $130 million estimate, which depend on gold prices and royalty rules Pashinyan said are now partly linked to world metal prices.

Sources: ARKA, 12 October 2026; Armenpress, 13 October 2026; Armenpress, 10 October 2026; Xinhua via The Star, 11 October 2026; OC Media, 12 October 2026; Eurasianet, 19 August 2019; ARKA, 8 September 2026