Sweedish journalist about Amoulsar projectOMVRLDEN, Izabella Rosengren, January 12, 2018
Novelty
Despite criticism: Swedish companies contribute to extremely environmentally hazardous mining in Armenia
Armenia has some of the lowest taxes for mineral exploration in the world, which attracts international big companies to treat the mineral rich bedrock. Two of these companies are ABB and Sandvik who are involved in the construction of a huge gold mine in ecologically important Amulsar.
Mining is Armenia's largest industry and accounts for more than 50 percent of export revenue. Nevertheless, the sector employs only one percent of the population. In a country with shortage of work, success was acquired when the British offshore company Lydian International announced in 2006 that they would build a gold mine in Amulsar in southern Armenia. When work began in 2015, 1300 people had jobs, but in the year when the construction of the plant is over, the number of workers will probably be reduced to 700.
The mine has been controversial since the start because of the extraction method to be used – extraction of gold using sodium cyanide.
"The method is controversial because sodium cyanide is extremely toxic and also very water-soluble and easily leakes into groundwater," said Levon Galstyan, geographer and chairman of the environmental organization Armenian Environmental Front, who has been fighting for the mine for over ten years.
According to Galstyan, the risk is that sodium cyanide flows into the area, where three major rivers pass and there are also two large water reservoirs that lead water to the lake Sevan. This lake supplies 18 percent of Armenia's population with pure water and is Armenia's largest freshwater reservoir. The area is also known for being an ecological corridor for leopard, bear and bezoar.
"If we pollute Sevan, we can as well leave the country," he continues.
However, Lydian International has always criticized the criticisms and refers to its own environmental reports and its own research. CEO Howard Stevenson announces on the company's website that the mine is world-class in terms of modernity and security and that shareholders can be calm and proud of the project.
At the beginning of 2017, Sandvik and ABB were contracted to build a crushing and screening facility and to electrify the entire area. Through its press service, ABB announces that they always strive to take into account the environmental impact of the countries in which they operate. In the case of Amulsar, they mean that the project is carefully monitored by investors. The European Bank for Reconstruction and Development, EBRD, International Finance Corporation, IFC, and the Swedish Export Credit Commission, EKN: "According to EBRD, IFC and EKN, Lydia's sustainability report confirms that they appear in line with two important mining standards – IFC’s Environmental Health and Safety Line and Extractive Industries Transparency Initiative, EITI."
Sandvik also refers to Lydian's own research and environmental reports:
– Lydian International is one of our customers in Armenia and we deliver a crushing plant to them. The entire project has undergone a thorough review by local authorities. Otherwise, we have no comments, said Carina Aspenberg, PR manager of the company.
The method of gold extraction with sodium cyanide is illegal in several countries just because of environmental risks. For example, in 2000 in Romania there was a cyanide spill from a mine that caused damage to ecosystems, even in neighboring countries.
– Each gold mine of this size has had serious consequences for the environment. It is the biggest problem for gold mines all over the world. And the problems will remain forever, even when Lydian leaves Armenia, says Levon Galstyan.
Lydian can leave the country whenever they want. Since 2012, companies engaged in mining operations in Armenia need not clean up afterwards, which has already led to the disposal of toxic waste. According to the research institute Center for Ecological Noosphere Studies at the National Academy of Sciences, CENS, the country's mining industry has led to the fact that many fields are covered with heavy metals such as mercury and cadmium. According to their calculations, more than 57 percent of the population lives in toxic environment.
"When ABB and Sandvik got involved in the project, it felt very bad. Sweden is known to be an environmentally friendly country and I was surprised that they did not even seem to have discussed the environmental issue," said Levon Galstyan.