Georgian Government Against 'Lydian': Company Adventures in Georgia

Georgian Government Against 'Lydian': Company Adventures in Georgia

Christine Aghalaryan, hetq.am

'Lydian International' Company having been issued a license for Amulsar Mine in Armenia has intentions to deal with mining in the region. Besides its Amulsar project, 'Lydian' has a mining project in neighboring Georgia, which is called 'Qela' project.

The subisidiary company of 'Lydian International' is 'Lydian Resources Georgia Limited' incorporated in Jersey in 2010, which was issued a permit for prospecting and development for 720.25 ha of mine area located in the administratie area of Zoti Village, Chokhatauri, Georgia on 4 October 2011.

According to the founding documents in the State Register of Companies of Georgia, President of Administration at 'Aneliq Bank' CJSC is an authorized representatives here, while 'Lydian Armenia' CEO Hayk Aloyan is also the director of the Georgian subsidiary.
We tried to learn from 'Lydian Armenia' CEO Hayk Aloyan, whether Lydian Resources Georgia Limited Company has proceeded with its geoprospecting license in the administratie area of Zoti Village, Chokhatauri, Georgia.

'The project is still in its initial stage. The geoprospecting license belongs to 'Lydian Resources Georgia Limited Company, which is 100% owned by Lydian International. If the geoprospecting shows sufficient results, Lydian is to publicise them as a public company,' Hayk Aloyan said in reply to our question.

At the end of December 2015, the term of 5 years was accomplished, nevertheless, Lydian Resources Georgia Limited Company hasn't submitted any report on geoprospecting findings, as well as a mining project. According to the letter of the ministry, the company is not taking any actions at the moment, and an administrative case has been initiated against Lydian Resources Georgia Limited Company for not adhering to the terms of the license.
On 20 February 2017 the State Environmental Inspection called upon Tbilisi Court by lodging a claim against the Georgian subsidiary of 'Lydian International Company'. The Inspection claims that the company has violated Article 57/3 of the Administrative Code of Georgia by violating the terms of the license and not submitting any report on the reserves and a mining project. An administrative fine in the amount of 200-500 GEL is set for this violation.

12:05 April 10, 2017


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