In 2012 Geoteam to invest $52mln in prospecting activities in southern Armenia

• Wednesday, February 22, 07:26

In 2012 Geoteam CJSC will invest $52mln in the prospecting of the Amulsar gold field in southern Armenia.

The company reports that since 2006 it has invested $30mln and has provided people living near Amulsar with jobs and social benefits. 

On Wednesday the company commented on the opinion expressed by the Environment Protection Committee of the Armenian National Congress on the previous day that the operation of the Amulsar field will be bad for the local environment.

"This opinion is groundless. Before making such a statement the Committee should have familiarized itself with the findings of foreign and local ecologists, which are available on our web-site.  Should the findings fail to convince them, we are ready to organize a public discussion," the company said.

It urged all political parties to refrain from making environmental issues a subject for pre-election speculations. "We guarantee that the Amulsar project complies with the national environmental standards. We are a transparent and socially oriented company. Our shares are quoted at Toronto Stock Exchange. Our shareholders are highly reputed international institutional investors." 

During a recent press-conference Armenia's Economy Minister Tigran Davtyan said that the Amulsar project will be carried out by a well- known company, which has promised to meet all environmental requirements. "The field is far from Jermuk. The technologies that will be used at the field meet all ecological requirements. So, there is no ground for saying that the project is harmful for the environment," Davtyan said.

Geoteam was set up in 2005. 95% of its shares are owned by Lydian International Ltd. According to preliminary estimates, Amulsar may contain almost 40 tons of gold. Among the shareholders of Lydian International are the IFC (16.5%) and the EBRD (7.5%).