Lydian Intends to Sue Environment Ministry

Lydian Intends to Sue Environment Ministry

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Lydian International finds illegal decree No. 353A of the Minister of Environment dated on October 25, 2019, on the rejection to issue water use permit to Lydian for Amulsar mine exploitation and intends to apply to Administrative Court. We can learn about this from Lydian's press release.

Below is the full text of the press release:

On July 4, 2019 the Company applied to the Ministry of Environment to water use from the Darb River at a volume of 43․5 l/s.  On September 9, 2019 the Ministry suspended and commented on the application, including one comment on the need to revisit the 43.5 l/s requested due to a seasonal insufficiency of water in the Darb River during three months of the year.

On September 26, 2019 the Company submitted a written response to the Ministry and amended its application requesting approval of water use of 40 l/s, as suggested by Ministry officials during discussions with the Company.

On October 31, 2019 the Company received a written rejection of its water use application signed by the Minister of Environment on October 25th.

Lydian’s Armenian legal counsel has advised that under Armenian law, if the Ministry failed to decide on the Company’s application within 50 business days of the initial submission the permit applied for is deemed granted and the Company may exercise the relevant right.  Armenian legal counsel also advised that, even accounting for the period when the Ministry suspended the Company’s application, the Ministry exceeded 50 business days to provide a decision on the Company’s application, and the Company may claim it has the right to draw water from the Darb River in accordance with the Company’s application.

The Company plans to file an application with the Administrative Court of Armenia to oblige the Ministry to provide Lydian with a physical copy of the water permit the Company is entitled to under Armenian law.

Edward Sellers, Lydian’s Interim President and CEO commented: “It is regrettable that Lydian must once again seek assistance from the Armenian Judiciary to address unlawful attempts to interfere with Lydian’s legal right to develop and operate the Amulsar Project.  Just last month, the Administrative Court found that a former official of the Government of Armenia had been acting illegally to prevent the Company from advancing the Amulsar Project.  It now appears that a Minister in the Government of Armenia is also acting illegally to prevent Lydian from advancing the Amulsar Project.”

“On August 19, 2019, Prime Minister Nikol Pashinyan publicly acknowledged that there is no legal basis on which the Government of Armenia can prevent Lydian from advancing the Amulsar Project and it is in the national interest that the Amulsar Project proceed.  The Prime Minister has made similar statements since then on numerous occasions.”

“When will the Prime Minister fulfil his commitments to enforce the Rule of Law in Armenia?”

 

15:08 November 06, 2019


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