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Armenia: Trying To Find A Balance Between Economic Need And Environm

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  • Armenia: Trying To Find A Balance Between Economic Need And Environm

    ARMENIA: TRYING TO FIND A BALANCE BETWEEN ECONOMIC NEED AND ENVIRONMENTAL RESPONSIBILITY
    Gayane Abrahamyan

    Eurasianet
    http://www.eurasianet.org
    June 3, 2009

    A Russian-owned mining company's plan to build a gold-processing
    plant near Armenia's legendary Lake Sevan has raised concerns about
    additional contamination of the lake, the source for 90 percent of
    Armenia's fresh water supplies.

    The proposed plant, to be situated about 10 kilometers away from
    Sevan, would reportedly include a reservoir for cyanide and toxic
    chemicals and a dump for cyanide waste. Environmentalists fear that
    the toxins could seep into underground water conduits and enter
    the 1,200-square-meter body of water, one of the world's largest
    high-altitude lakes.

    Fresh hazards to Sevan could mean fresh damage to the Ararat Valley,
    which provides about 70 percent of Armenia's fruit and vegetables and
    which takes needed irrigation waters from Sevan. "Armenia will cease
    to exist, if the lake is contaminated," commented former environmental
    protection minister Karine Danielian. The National Academy of Sciences'
    Lake Sevan Center stated that it has no information on the lake's
    current level of contamination.

    The GeoProMining Company, headquartered in Moscow, and with copper,
    gold and other mines in Armenia, Georgia and Russia, wants to
    build the processing plant at its Sotk gold mine, 10 kilometers from
    Sevan. Reducing transportation costs for ore processing is its reported
    goal. Currently, Sotk's ore must be transported 263 kilometers south
    to another GeoProMining processing center.

    In theory, environmentalists contend, the plan for a Sevan processing
    center should be a non-starter. Article 10 of Armenia's 2001 Law
    on Lake Sevan bans the establishment of processing plants in the
    lake's basin.

    The government has not yet officially endorsed the project, but
    both the Ministry of Environmental Protection and the Ministry of
    Regional Management confirm that they have discussed the proposed
    processing center.

    Neither ministry, however, has yet received a written project proposal
    from GeoProMining, ministry representatives told EurasiaNet.

    Both the environmental protection ministry and GeoProMining refused
    to discuss the project or to address potential risks highlighted
    by environmental activists. "As Minister Ara Harutiunian has said
    several times, we have not approved any project and all this panic is
    senseless," Deputy Environmental Protection Minister Simon Papian said.

    GeoProMining displayed similar reticence on the issue. Vardan
    Vardanian, chairman of the board of directors of the company's
    Armenian subsidiary, GeoProMining Gold, declined an interview request
    with EurasiaNet and later put an embargo on comments by a company
    spokesperson.

    The company's reluctance to discuss the project has only fired
    environmentalists' criticisms.

    Activists contend that the environmental protection ministry's
    assurances of caution will carry little weight in the face of a
    December 2008 pledge from GeoProMining to invest $350 million into
    Armenia's gold-mining sector between 2009 and 2011. Precious and
    non-ferrous metals are among Armenia's top exports.

    "They gave similar assurances regarding the [Armenian Copper Program's]
    copper-molybdenum mine exploitation and the plant mine's construction
    in Teghut," commented Inga Zarafian, chairperson of Yerevan's Ecolur
    information center, in reference to the ministry. "They promised
    they would not allow the logging of 670 hectares of forest, but they
    approved the plan and we lost the best forests in Armenia." [For
    background see the Eurasia Insight archive].

    Environmentalists had initially looked to the Law on Lake Sevan to
    stop GeoProMining's plans. They now contend that parliament may soon
    amend the law - under government instruction - to clear legal hurdles
    for the gold-processing plant. Opposition Heritage Party members of
    parliament echo that view.

    Khachik Harutiunian, chairperson of the National Assembly's Committee
    for Agricultural and Environmental Protection Issues, however, told
    EurasiaNet that such amendments are not on parliament's agenda.

    For its part, GeoProMining maintains that it shares the concern for
    Lake Sevan's environment. In an April 26 television interview with
    Yerkir Media TV, GeoProGold Board Chairman Vardanian stated that the
    company plans to use mining technologies that will eliminate the risk
    of environmental damage to Sevan. "We will refuse to exploit the mine
    and will stop work if there is the slightest [environmental] hazard,"
    he said.

    The former director of the Sevan National Park, however, argues
    that the area's landslides and seismic activity may trump any such
    technologies. "No one can guarantee the [toxic waste] dump against
    an earthquake.

    The smallest crack is enough to have the toxins penetrate into
    underground water," said Gagik Sukhudian. Fears of potential shelling
    from nearby Azerbaijani army positions underline that danger, he added.

    To identify potential environmental ramifications, GeoProMining has
    commissioned research by the National Academy of Sciences' Institute
    of Hydro-Ecology and Ichthyology. The Academy declined to discuss
    the findings with EurasiaNet.

    The amount of waste likely to be generated by the proposed
    gold-processing plant has not yet been defined, but former
    environmental protection minister Danielian estimates the total
    at 100 million tons over 10 years. GeoProMining representatives
    did not provide a figure. It remains uncertain whether
    GeoProMining-commissioned research can clarify the environmental-impact
    picture.

    Editor's Note: Gayane Abrahamyan is a reporter for ArmeniaNow.com
    in Yerevan.
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