The U.S. Embassy in Armenia has welcomed the Armenian government’s decision to provide $150 million in loan guarantees to Lydian Canada Ventures, enabling the completion of the Amulsar gold mining project in the country’s Vayots Dzor province.
In a statement on Friday, the embassy called the move “great news,” emphasizing that the project, long supported by the U.S., would create jobs and economic opportunities for both Armenia and the United States. “Armenia is open for U.S. businesses, and the U.S. Embassy is proud to support as we work toward a more prosperous future together,” it said in a post on X.
Lydian initially planned to begin open-pit mining operations at Amulsar in late 2018, projecting an annual output of 210,000 ounces of gold, valued at approximately $550 million at current market rates. However, the project was stalled after environmental activists, citing concerns over potential ecological damage, blocked access to the site following Armenia’s 2018 “velvet revolution.”
Despite repeated warnings from U.S. officials that halting the project could deter foreign investment, Prime Minister Nikol Pashinyan’s government declined to forcibly end the blockade. Then-U.S. Ambassador Richard Mills and senior State Department officials urged Armenia to uphold contractual agreements, warning that failure to do so could harm the country’s attractiveness for investors.
With no major Western investment projects in Armenia since the Amulsar standoff, the government’s recent decision marks a significant step in reviving the stalled initiative.
