There are few industries that are bound to have as significant an impact on the future of Armenia as mining. From opportunities for economic growth and job creation, to foreign investment and regional development, mining has the potential to play a significant role. However, current gaps in legislation, and a poor track record of assessment, monitoring and enforcement, present many risks too. Armenia is a highly urbanized nation with a small land area, so the impacts on the environment, society, economy and the rights of workers are multiplied and potentially catastrophic.
When developing mining policies in Armenia there are several challenging questions that should be addressed. Are there reasons that compel Armenia to resort to mining? What are the environmental, economic, social and workers’ rights impacts of mining? Have the legacies of genocide, a centralized soviet economy, the Artsakh war, natural disasters, poverty and corruption driven Armenia to boost the economy through mining and is this justifiable? Does Armenia have some ‘responsibility’ to mine natural resources for the global and Armenian markets? Are there other industries that could substitute for mining and generate even greater economic and social outcomes without impacting the environment?
Environmental
- Due to inconsistencies in geographic information system (GIS) measuring techniques, some mining license holders lay claim to land that is dually reserved as Armenian national park land;
- While the law requires that Environmental Impact Assessments (EIAs) be prepared before mine operations commence, the guidelines for preparing them are weak and they are not undertaken independently, but rather by the mining companies themselves; and
- Some tailings dams in Armenia are not built to international best practice, and the rules for designing, building and assessing dams are inadequate.
Economic
- The potential economic demise of the agricultural and tourism industries in areas close to mine sites is not appropriately assessed;
- Compensation currently received by mine operators for environmental damages caused by mining operations in Armenia is insufficient; and
- There is currently no sovereign wealth fund in Armenia for state revenues generated through mining operations.
Social
- There is an increased risk to public health caused by heavy metals and high levels of toxicity in the air, soil and water making their way into the food chain; and
- While required by law, Health Impact Assessments (HIA) are often not undertaken by mining companies in Armenia as there are no implementation guidelines.
Workers’ Rights
- Workplace injuries in Armenia are substantially more frequent in areas and regions which have significant mining operations;
- Safety practices, training and compliance have not proven to result in substantial reductions in workplace injuries; and
- Local staff hold fewer senior positions in Armenian mining companies and are less frequently promoted to managerial positions, stunting career progression.
This is just the tip of the iceberg when it comes to concerns held by civil society about mining operations in Armenia. In the coming weeks the MLRI will be running its final round of consultations to further consolidate this input, before launching and pitching its civil-society-led and scientifically-backed responsible mining policies to the Armenian government.