YEREVAN/ Oct. 16 (The Conway Bulletin) — The outgoing US ambassador in Armenia, Richard Mills, said he was increasingly concerned about the amount of time it was taking for the authorities to allow the Amuslar gold mine, owned by Colorado-based Lydian, to start operating.

This rare criticism by a US ambassador highlights the frustration building up at Lydian and its supporters over what they see as political meddling. In an interview with the EVN Report, Mr Mills said that delays at Amuslar, which has been accused of breaking environmental regulations and of corruption, was damaging Armenia’s investment climate.

“I’m not aware that they have violated environmental norms,” he said. “It does create an investment concern and that’s not a threat.”

The Amuslar mine was given approval in 2016 and was due to start producing gold this year although this is now considered unlikely. This year protesters have blocked roads leading to the mine and in August, prosecutors launched a minor criminal case against Lydian Armenia. The environmental agency has also forced the mine to halt production to investigate discoveries of ‘Red List’ animals and plants.

Lydian International has denied any wrongdoing and has said that allegations are designed to either stop the project altogether or to generate payments. The European Bank for Reconstruction and Development (EBRD) is a shareholder in Lydian.

ENDS

>>This story was first published in issue 388 of The Conway Bulletin on Oct. 17 2018