Lydian (Amulsar Gold Mine) - Extension

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

In 2015, Lydian International Limited had completed exploration of the Amulsar gold deposit and had secured financing to start mine development. In 2016, the EBRD provided Lydian International with an equity injection, which was earmarked for financing of the Environmental and Social Mitigation Measures (ESMM) (as defined in the ESAP, including financing a biodiversity off set programme and the construction of water treatment facility) and related activities.

Project ID 48579

Status Complete

Location

Armenia

Business Sector

Natural Resources

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 48579

Status Complete

Location

Armenia

Business Sector

Natural Resources

Notice Type

Private

Environmental Category

Approval Date

20 Jul 2016

Disclosure date

19 May 2016

Lydian (Amulsar Gold Mine) - Extension (Armenian) (PDF, 0.64MB)

Project description

Client information

LYDIAN INTERNATIONAL LTD

Lydian International used to be a publically-held corporation, registered in Jersey, Channel Islands and listed on the Toronto Stock Exchange. Its key asset was the Amulsar gold deposit in Armenia.

Lydian International became insolvent in 2019 at which time it applied for protection from its creditors in Canada allowing it to restructure its business and financial affairs. As part of the insolvency proceedings, a corporate restructuring plan was adopted resulting in the company's existing senior lenders in Lydian Canada, Lydian UK and Lydian Armenia owning and controlling the assets while Lydian International is subjected to closure proceedings before the competent Jersey court.

As of July 2020, the Amulsar gold deposit is owned by Lydian Ventures of Canada, where the EBRD is not a shareholder. The EBRD remains a shareholder, for now, in Lydian International of Jersey, which has no assets. The lenders will apply to the court in Jersey for it to be wound up.

EBRD Finance Summary

The Bank invested CAD 11.4 million to purchase shares of Lydian International as part of its capital increase. The funds were used to finance ESMM undertaken as part of the project. The EBRD did not invest in Lydian Ventures and does not have a financial interest in it.

Environmental & Social Summary

An ESIA was prepared for the project, and the EBRD was actively monitoring the implementation of the ESIA until the point of Lydian International's insolvency, at which time the EBRD's financial interest in the Amulsar project ceased.

PSD last updated

06 Aug 2020

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Project ID 48579

Status Complete

Location

Armenia

Business Sector

Natural Resources

Environmental Category

Disclosure date

19 May 2016

Project description

Lydian has been preparing on the Amulsar Gold Mine for development for over five years and has now secured financing to start mine development. The Bank is providing Lydian with an equity injection, which will be earmarked for financing of the Environmental and Social Mitigation Measures (ESMM) (as defined in the ESAP, including financing a biodiversity off set programme and the construction of water treatment facility) and related activities.

The Bank’s financing will be earmarked for financing key components of the Project ESIA mitigation measure such as the biodiversity off set programme and construction of a passive water treatment facility. The above provision will be included in the Subscription Agreement alongside the Environmental and Social Action plan.

There is a Project Summary Document available for this project

ESIA disclosure package

Environmental and Social Impact Assessment

Non-Technical Summary (NTS): English | Armenian

Environmental and Social Action Plan (ESAP)

Stakeholder Engagement Plan (SEP)

Environmental and Social Impact Assessment

Chapter 1 – Introduction

Chapter 2 – Legal Framework

Chapter 3 – Project Description

Chapter 4 – Environmental and Social Baseline

Chapter 5 – Alternatives Assessment

Chapter 6 – Environmental and Social Impact Assessment

Chapter 7 – Cumulative Impact Assessment

Chapter 8 – Environmental and Social Management Plan

Appendices for Chapters 1-7

Appendices for Chapter 8

Figures for Chapter 6.5

Full ESIA availability

Full ESIA documentation is available locally at:
1st Street 2/1, community of Gndevaz, Vayots Dzor Marz, Republic of Armenia

And

EBRD Resident Office in Yerevan: 2nd floor, rooms 95-97, Piazza Grande Business Centre, 10 Vazgen Sargsyan Street, Yerevan 0010, Armenia

And

http://www.lydianinternational.co.uk/

Enquiries

Environmental or social enquiries:

In person, in writing or over the phone at Lydian International offices in Yerevan:

Attention: Community Relations Department, Lydian International,
Postal Address: 37 Hanrapetutyan Street, 4 floor, Yerevan 0010, Armenia
Tel: +3 741 054 6037
Fax: +3 741 058 6037
Company Website: http://www.lydianinternational.co.uk/

In person verbally to the Community Relations Officer, which will be recorded on a feedback form.

General enquiries

Howard Stevenson
Chief Executive Officer
Lydian International Limited
Direct enquiries to:
7000 S. Yosemite Street, Suite 201
Centennial, CO 80112 USA
+1 720 307 5080
Email: howard.stevenson@lydianinternational.co.uk
www.lydianinternational.co.uk

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Environmental and Social Impact Assessments and ESIA summaries are produced by project sponsors, and the EBRD makes them available without any comment or implied endorsement. Any views expressed or statements made in the Environmental and Social Impact Assessment or the ESIA Summary do not necessarily reflect the views or opinions of the EBRD.

Last updated 25 June 2014

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

View complaint case for this project

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Lydian (Amulsar Gold Mine) - Extension

Overview

Project timeline

Project description

Client information

EBRD Finance Summary

Environmental & Social Summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

Project description

ESIA disclosure package

Full ESIA availability

Enquiries

General enquiries