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On Threshold Of Provision Of EBRD Loan Worth 25 Mln USD To Deno Gold

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  • On Threshold Of Provision Of EBRD Loan Worth 25 Mln USD To Deno Gold

    ON THRESHOLD OF PROVISION OF EBRD LOAN WORTH 25 MLN USD TO DENO GOLD MINING COMPANY ARMENIAN ECOLOGISTS ENGAGE IN BATTLE AGAIN

    ArmInfo
    2009-11-19 18:25:00

    ArmInfo. On the threshold of provision of EBRD loan worth 25 mln USD to
    Deno Gold Mining company, Armenian ecologists engage in battle again.

    "Probably, EBRD has no information on the real situation in Kapan,
    Syunik region of Armenia, that has been caused by the activities
    of Deno Gold Mining. According to ecologists' assessment, three
    communities - Geghanush, Syunik and Shahumyan are on the brink
    of ecological and social disaster",- Head of the EcoLur public
    organization Inga Zarafyan said to ArmInfo correspondent. She recalled
    that as a result of emergency releases in 2006-2007, land and garden
    plots were contaminated in the village of Syunik, the cattle died,
    children displayed strong allergic reactions to the extent that
    their skin sloughed off their hands. At the same time, the State
    Environmental Inspection responded to this situation only after the
    racket in mass media.

    Shahumyan gold-polymetallic deposit being developed by DGM is situated
    in the territory of Shahumyan community. "This is a highly dangerous
    zone: the residents' houses break down of explosions. The developers
    have not practically left the upper layer above the drifts despite to
    the exploitation rules, and the land is caving in and making craters",-
    Zarafyan stressed. She added that the main waste flow was closed
    after construction of Geghanush tailing dump on the common lands on
    Geghanush community. However, there is practically no buffer zone here,
    and those having land plots near the tailing dump have been deprived
    of the opportunity to receive incomes. Besides 19 ha private plots,
    the hazel-wood growing on the slopes of the gorge filled with waste
    ceased bearing fruit. "Furthermore, there are still "tails" left open
    by the company. The river Norashenik flows nearby, and its banks are
    fortified with the "tails",- Zarafyan said.

    Thus, as it was pointed out, the activity of Deno Gold Mining fails
    to meet the ecological and social policy announced by the European
    Bank for Reconstruction and Development as it violates the Armenian
    legislation and human rights, as well as the rights to life and
    health. "We think that there are all grounds for EBRD monitoring,
    particularly, in the light of the loan provision negotiations between
    the bank and the company. This may make the company be more attentive
    to implementation of its commitments and observance of laws of the
    country where it operates",- Zarafyan said.

    According to her, the EBRD decision on provision of the 25 USD
    mln mid-term loan should be open for the public. "Suppression of
    documents concerning the loan for Deno Gold Mining from the EBRD
    website does not contribute to transparency of the company's activity
    under the loan agreement and does not contribute to transparency
    of EBRD activity either",- Zarafyan said. She pointed out that on
    November 24 she will participate in an international conference in
    London and raise there all the issues concerning DGM activity. "The
    company violates the environmental legislation, including the Land
    Code, Water Code, Forestry Code, and Natural Resources Code. For their
    part, the supervising bodies, including Inspection of the Armenian
    Nature protection Ministry and Sanitary Inspection of Health Ministry
    lay down no necessary demands on legislation observance before the
    company",- Zarafyan said.
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