"Mining is the largest industry in Armenia, and likely its most corrupt. Currently, 460 mines operate in Armenia (roughly one mine per 5,600 citizens) and in recent years, mining has provided over 50% of Armenia’s exports. But Armenian citizens have seen little material benefit from these activities, as mining employs only one percent of the workforce and contributes only three percent to national GDP."  Lydian International Limited company is an offshore zone company (Jersey, Channel Islands). Amulsar gold deposit is its key asset. Lydian expects to extract annually some 10 million tons of ore containing 7.8 tons of gold from Amulsar gold deposit for the rather short period of eleven years. The gold will be extracted from the ore with cyanide and the heap leach facility will be located in Gndevaz village one kilometer away from the residential area. According to legal experts, the permission to construct the cyanide heap leaching facility in such proximity to the residential area is one of the factors in need of legal assessment together with the impact of the method itself on the surrounding environment. Also the mining area is considered too close to Jermuk resort, which is an international resort complex famous for its sanative waters. The pool where sanative waters are located has the status of hydrological reserve and is included in the list of Armenia’s specially protected areas. Armenia’s law on water prohibits activities such as blasts that release toxic waste in the areas with underground waters. Open pit mining in Amulsar will be accompanied with blasts as well as heap leaching, thus it will negatively affect the environment in Jermuk and its waters. This project is also close to Armenia’s biggest potable water reservoirs -Spandaryan and Kechut reservoir, which feed lake Sevan through Arpa-Sevan tunnel. Streams that feed Vorotan, Arpa and Darb rivers are as well located in the vicinity of mountain Amulsar. This is a potential risk for all water resources of the region and Armenia. Another concern is related to flora and fauna of the area. There are around 248 species of plants, 6 of which are registered in the Red Book of Armenia (i.e. at the verge of extinction). Final approval was granted in 2016, the groundbreaking ceremony took place in August, and the Amulsar Mine will begin operating in 2018. Each year, 10m tonnes of ore, containing 7.8 tonnes of gold would be removed from the earth. The mine is to remain operational for 11 years, closing in 2029.
According to the journalist Peter Liakhov, "The Armenian government charges some of the lowest fees for exploiting natural resources in the world, and after a 2012 legislative change promoted by the World Bank, doesn’t even charge companies for cleaning up after mining operations cease. This means that dealing with rocks, tailings and other hazardous waste becomes a burden for Armenian taxpayers. Waste is often left untouched, polluting the environment, destroying arable land and poisoning Armenian citizens. [...] Armenia has signed several treaties on mining with the EU, most notably the Aarhus Convention, which, theoretically speaking, prohibits the kind of criminal behaviours seen in the industry. Yet the EU has done little to ensure that Armenia’s government abides by the stipulations of the treaties it has signed. And why would it? Armenia’s lax regulations and corrupt government have been a boon for European mining companies, providing relatively easy profits with the cost often little more than the occasional bribe to the right person."