Armenia
Legislation
- Code of the Republic of Armenia on Subsoil Use 2011
- Law on Environmental Impact Assessment and Expertise 2014
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Criteria | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
Armenia's mining legislation is similar to that found in other countries which were formerly part of the Soviet Union, however the laws have been modernised and improved extensively in recent years to incorporate principles and standards which foreign investors will recognise and appreciate. Efforts have also been made in the legislation to bridge the gap between civil society and the mining sector and help improve transparency in the country. That being said, pockets of discretion in the legislation do offer the government the opportunity to arbitrarily block projects from progressing, which is concerning when considering the experience of western companies in the country to date.
Contents
Legislation
- Code of the Republic of Armenia on Subsoil Use 2011
- Law on Environmental Impact Assessment and Expertise 2014
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
There is a long history of mining in Armenia, with copper, molybdenum and gold the minerals of primary focus. Armenia also has an active quarry industry. The country’s mining sector has traditionally been dominated by local and Russian companies, with few other foreign participants. Exceptions include UK-based Lydian, who returned to the country in 2020 having been deterred from their Amulsar gold project in the past due to environmental protests. In 2023, the company and the government of Armenia announced the conclusion of a memorandum of understanding for the development of the mine. Armenia has struggled to unlock the potential of its mining industry for a variety of reasons, with only one discovery since 1991 progressing to construction. There is great scepticism around mining in the country and anti-mining community groups can be particularly vocal in opposing mining activities. This opposition is rooted in legacy issues, with many older mines in the country having poor environmental and health and safety standards. Geological data is outdated and falls short of international standards. Institutional capacity has also been insufficient, whilst regulatory frameworks and implementation have proved insufficient to address poor industry practices. To address these issues, Armenia, in collaboration with the World Bank, has been working on a mining strategy to grow and develop the mining sector. Whilst the implementation of the strategy is still on-going, the re-entry of Lydian into the country is potentially a positive sign.
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