Miners Grigory (l.) and Ashot (r.) in Kapan.
By Martin Ocknecht
The Armenian Development Agency states that there are 670 mines and drilling holes in Armenia. Precious metals are mined in more than 30 of them. Mining related to the Armenian mineral wealth is an important part of the national economy. On the other hand, these activities have a great negative impact, mostly on the environment. What does life in Armenian mines and around them actually look like? You will find a partial answer in this article.
Successors of Homo Sovieticus
Dust. Almost unbearable noise. Our glasses are constantly misted over by ubiquitous moisture. We take off our coats because of the unbearable heat. We have to put on our masks if we want to move on. Darkness. A narrow torchlight cone shines through endless tunnels. Water. For most of us, this is a place to avoid. But this has also been Ashot’s daily routine for the past 36 years. We are in the mines of Kapan about 400 km from Yerevan. With this experienced burshik (miner), we are heading through an underground shaft down to the ninth level, our workplace for today.
“My father didn’t want me to become a miner. He found it too dangerous. He started to change his mind when I brought home my first paycheque,” Ashot says.
The miners of Kapan.
High salary and social status made being a miner a very attractive job during the Soviet era. However, Ashot remembers the many negative aspects as well. “Nowadays, occupational safety is totally different. We haven’t had fatalities for several years. The last one was caused by a heart attack, but it wasn’t related directly to the work. On the other hand, a dangerous accident happened almost every week during the Soviet era,” Ashot explains. “In 1986, I was offered to work in the mines of Sverdlovsk (present-day Yekaterinburg) for even higher salary but I refused. Sverdlovsk had an appalling reputation in those days – cave-ins, methane leaks, frequent accidents. I already had a family, so I didn’t want to risk it only for money.”
We meet a retired miner Styopa at the TV tower near the town. He remembers another phenomenon of the Soviet mining industry — alcohol. “It was no problem to take a bottle of vodka to the mine and to drink during the shift. Nobody checked anything. Many fatalities were caused because of alcohol. That’s why the mine headquarters introduced several fundamental safety measures,” Styopa explains. “Everybody who enters the mining company area [also known as a Kombinat] has to undergo a breathalyzer test – a novice miner or CEO, the security guards are strict. Any detectable blood alcohol content means no admission for the transgressor. Naturally, there is a subsequent penalty.”
We take off our coats because of the unbearable heat. We have to put on our masks if we want to move on. Darkness. A narrow torchlight cone shines through endless tunnels. Water. For most of us, this is a place to avoid. But this has also been Ashot’s daily routine for the past 36 years.
In the Soviet Union and its satellite countries influenced by Marxism-Leninism, a man of labor was highly valued. A miner working in harsh and dangerous conditions was the ideal prototype of the Hero of Socialist Labor. He was the legendary Soviet man who works hard to move his homeland quickly towards the ideal communist society.
The extraordinary status brought many benefits, which Ashot can only reminisce about now. “I earned loads of money that time, as much as the local Communist Party secretary. When somebody wanted a new car, they wrote my name in the waiting list on their behalf because they knew that a miner got a car easily. We also went to the remedial holidays by the sea, I could buy the most luxurious goods. However, I don’t think it was something false or disingenuous. The other people knew that mining is a hard job and they appreciated it.”
The hard life of miners.
Even though the social status of miners deteriorated after the Soviet era, Ashot does not complain. He has a stable job, his salary is above the Armenian average and he is esteemed in the Kombinat. He was even chosen as Employee of the Year 2014. “I’m glad I have a job. Many people of my age sit around in unemployment offices but I can work. That’s some kind of miracle in Armenia.”
The interview is interrupted by Grigory’s arrival. He started his job in the shaft only three months ago. He originally worked in the facility security, but he found the job on the surface uninteresting and furthermore, he wanted to help his sister repay her debts. Therefore, this twenty-six year old man works down in the mine as Ashot’s assistant and apprentice. Grigory has a clear vision of his future: “I would like to work as a burshik sometime, like Ashot does. Maybe, I will even become a specialist who is needed in difficult situations and who is very well paid. Then I will help my sister to repay her debts, I will marry and build a house.
The short interview is interrupted once again, this time by the noise of Ashot’s automatic jackhammer. Centimetre by centimetre, Ashot breaks through the solid rock. Day by day, shift by shift, for thirty-six years. How many kilometers of tunnels has he already made? Even Ashot himself does not know.
When this mine worker and Nagorno-Karabakh war veteran is asked to express his greatest wish, his eyes twinkle for a while: “God give Grigory and other young people a job which ensures them a good life and teach them to do their profession dutifully and happily. May they never experience war like we did.”
Ashot’s father tried to discourage him from the dangerous mining job. Ashot tried to do the same with his own son but he failed as well. Coming up to the surface, we meet the night shift. Among other mine tunnelers, Ashot’s son prepares his equipment……. Mining became literally a family business.
The man, who holds the keys to the town
Ashot Hayrapetyan, mayor of Kapan.
When traveling to Kapan from the town of Kajaran, one may see an interesting monument not far from Kapan. A statue of a bear holding the keys of the town stands high on the rock. In fact, this man holds the keys of the town: Ashot Hayrapetyan, who has been the mayor for several years. He fully realizes the importance of Kapan in Armenia: “When talking about Kapan, everybody recalls mines. Kapan is virtually synonymous with mining. Mining always had a great impact on the town’s development and shape and its life as well; we have to keep that in mind all the time. However, I would like other economic sectors to develop as well. Only 15 per cent of inhabitants work in mining and related industries, so we are not connected only to mining. But it is still a symbol of the town and one of the driving forces of its economy.”
The salaries rank among the highest in Armenia. On the other hand, the town faces high unemployment rates, which is the mayor’s cardinal challenge.
“Together with the government, we try to make the best possible conditions for investors so they would find the town interesting, run their business and employ our residents. With the help of the European Union, we may launch a mining waste processing program in the next few years. It should create up to five hundred job opportunities,” Hayrapetyan says.
The local precious metal deposits are not endless; therefore it is essential for Kapan to prepare for a future without mining. “We do realize we cannot focus on heavy industry and mining only, we don’t want to end up like Detroit, which is a lifeless city in fact. It is hard to anticipate the future in fifteen or twenty years. Some new deposits might be found but it is also possible that mining in Kapan will be over someday. However, I believe we have many things to offer — beautiful nature, tourist services, ecotourism, other aspects of the town…”
Some people, mainly activists, doubt that the tap water in Kapan is drinkable because of mining. Instead of answering the question, Mr. Hayrapetyan fetches two glasses of tap water.
Artur’s critique
Lawyer Artur Grigoryan.
Initial interviews with miners and the mayor of Kapan may lead one to assume that there is no negative fallout from mining. However, there are critical voices, which address the impact to the environment and the town life. Artur Grigoryan is one of the more vocal opponents. He is an associate lawyer for several non-governmental organizations.
He lists the main risks of mining in Kapan: “There are many problems in Kapan. An extensive tailing dump is left after the mining, but nobody has defined its final area. According to company plans, the dump embankment can extend up for 40 more meters. It means it would get close to the village of Geghanush. As far as I know, there is no study monitoring the effects of the dump on the village. I have a question: How does it correspond with all relevant standards and especially with the social responsibility, which Dundee Precious Metal claims to adhere to?”
The lawyer says that the other problem is polluted groundwater and, consequently, the river Voghji running through Kapan.
These objections are a challenge for mining company officials. Therefore we go straight to them.
Representatives of Dundee Precious metal mining company reject these critiques of their activities. Instead, they point out the high environmental standards, which are used in Kapan. According to Norayr Aghayan, one of the managers, these standards are much higher, than required by the Armenian government.
Norayr Aghayan and Gayane Tadevosyan.
Gayane Tadevosyan, the PR manager of the company also commented on the situation referring to the tailing dump in Geghanush. “Tailing dump will not be raised more than 36 meters vertically from the current elevation as was designed initially. With regards to the impact on the villagers and the environment, I should note that when talking about the impact we should first talk about the pre-existing conditions in order to draw comparisons. The old TMF [Tailings Management Facility] was abandoned without rehabilitation and not taken care of,” Tadevosyan explained. “This allowed dust from the TMF to be spread around causing the biggest environmental damage. Currently the TMF is always kept wet, which allows eliminating dust emissions and we also rehabilitate the walls progressively. From the water discharge perspective we installed recycling water system which allows reusing 100% of tailings water in our processes.”
The alternative – Ark Armenia
Like many other mining towns, Kapan has to prepare for its mineral resource exhaustion. What will the future of these towns, including Kapan, be?
The association of Ark Armenia offers an alternative. Armen, his wife Siranush and their team have started an ecotourism support project in the town and its surroundings.
Armen, the founder of Ark, describes one of the key objectives of the association: “The problem is that most people of Kapan lack concern for their community. They go to work, spend evenings watching TV and that’s all. Young people, who are usually the driving force of civic society in other places, leave for Yerevan or other countries. It is not about the money, they can earn a handsome sum, but only if they find a job. More likely, they find our town unattractive. But that’s not true. We want to show them that living here can be very interesting. I am quite confident that Kapan offers many opportunities, it is beautiful and an interesting place to live. Besides ecotourism, we want to bolster local people’s concern for their town. If they realize that tourists from all over the world come to our town, perhaps they will understand the richness of Kapan.”
Armen Kazaryan.
Armen himself returned as “a lost son.” Since he was 16, he lived in Russia, where he studied economy and worked in many occupations. He had to leave his desk job because of his genetic eye defect, so he became a masseur in Sochi. He and his wife decided to return to their hometown two years ago. He says he never regretted the return.
When we are on our way to newly built camp, Armen talks about his philosophy: “It’s just time to return and to create something. Nowadays, everything is about consumerism, but I believe the values are to be created. That’s why I decided to return to Kapan and help it to develop, support local community and show the beauty of this place. We have the largest forest in Armenia, we have very interesting scenery, rocks, mountains, cliffs, just a paradise for tourists. The place is ideal for ecotourism. I realize that Kapan is an important center and crossroad of ecotourism. If you travel from the west of Europe to the east, to Iran, you travel via Kapan. And it is our task to persuade tourists to stay in this beautiful area for few days.”
A new project called Ark Bridge was started to serve this purpose. The goal is to connect Kapan to the other important sights in southern Armenia, mainly to the Tatev Monastery Complex. Two more encampments are planned in order to offer tourists basic facilities for exploring this part of Armenia. Everything is naturally made according to sustainable development principles and environment-friendly.
Armen’s wife Siranush stresses the differences between ARK Armenia and many other non-profit organizations. “They understand mining and related activities as an evil to be disapproved. We believe these radical black-or-white opinions cannot be held. The mining is essential for the town, it employs many people,” Siranush says. “We just want to offer another alternative. We use old materials from the mines in the sense of sustainable development. We want to show that Kapan is not only about mining, it offers much more.”
We walk up the hills near the edge of town. Suddenly, we meet two cyclists. A young Belgian couple is staying in a newly built camp near the town. These adventurers are living proof that an alternative vision of Kapan is possible. “We have been traveling for three months now. We started in Antwerp and we want to finish in Iran. Then we will go back the same way. In spite of the cold weather in camp presently, it is an excellent idea. We can recommend it to everybody. Beautiful nature, good people, mountains,” the young Belgian man tells us about his impressions while his girlfriend thanks Armen for his hospitality and accommodation.
Finally, we reach the camp. Plain but efficient cabins, a simple kitchen, newly planted trees. Not being a Marriott Hotel, it is a place, which impresses visitors with its romanticism and unusual charm.
A case called Amulsar
While Kapan symbolizes the history and present of the mining industry, the planned gold mine of Amulsar should symbolize an illustrious future of mining. At least according to the ideas of the British mining corporation Lydian, which initiated the project.
A possible mine in Amulsar has attracted great attention, mainly because of its location. The world-famous spa town of Jermuk is only a few kilometers away from the future open pit mine.
Makedon Aleksanyan.
Former economist Makedon Aleksanyan lives just few dozen meters from the center of Jermuk. When he is asked to list everything he minds about it, he is almost unstoppable: “Generally, I am not against mining, I realize it is important for our economy. Nevertheless, I cannot accept the method. I believe the open mine has much greater impact to the environment. For example, the dust raised by mining will cripple all the fruit trees we grow. In the Soviet era, a bedrock survey was made, but then officials realized the importance of Jermuk and the impact of mining to the town, so nobody dared to start the project,” Makedon explains.
Mr. Aleksanyan and his lawyer Artur Grigoryan even filed a lawsuit. Even though they have not succeeded so far, they refuse to surrender and they are to appeal to the European Court of Human Rights in Strasbourg. Artur Grigoryan mentions the decision of the independent expert committee of the Armenian Academy of Sciences. The permission for mining issued by the Ministry of Environment is in breach of the law, the expert committee states.
Both men also point to suspicious relations between the corporation and Jermuk authorities. “I don’t want to talk exactly about corruption, but there is a risk of such actions,” Artur says.
Originally, we were granted permission to visit the Amulsar mine. When we arrive at the rendezvous point at 8 AM, we are prohibited from entering. The bad weather is the alleged reason. It is to be mentioned that the sun is shining and temperature is above average in November conditions. The public relations manager shows us the way to the information center. We are given many brochures which answer the most frequent objections: Lydian Corporation will strive to adhere to all given standards and provide potential compensations, the brochures state.
A Lydian corporation manager, Armen Stepanyan, replies to Mr. Aleksanyan’s question why the open mine method will be used in Amulsar: “The decision for the open mine method was motivated by many economical and geological reasons. Considering the composition of ores in the Amulsar area, the open mine is the most suitable and the most considerate solution. The open mine does not always pose a greater environmental impact than an underground mine. Each method has its own pros and cons. The Amulsar project fully adheres to all rules and requirements stipulated by both country and international organizations.”
At the end of our interview, I ask Makedon whether he would be willing to leave Jermuk. The sprightly man answers flatly: “Here I was born, here I felt in love, here I raised children, here I live all my life, here I will die, no matter what happens.”
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Additional information:
Mining in Armenia
Intensive ore mining in Armenia started in the 19th century. That time, new copper mines in Alaverdi in the north and in Kapan in the south were opened. Simultaneously, an Armenian industrial boom began, which was further emphasized when the Bolsheviks took control of the country. They considered mining and related industries as very important. There was a significant need for vast amounts of metals and Armenia proved to be a diligent producer. Save for the mines, new affiliated metallurgy facilities were built, therefore Armenia, despite being a small country, became an important technological centre of the Soviet empire.
After regaining independence, industry in Armenia and many other Soviet satellites was gradually privatized.
Nowadays, all Armenian mines are in private ownership. In the past, several Armenian politicians were accused that they control expediently privatized mining companies by many puppet companies.
In 2010, public in Armenia was upset about news that Paramount Gold Mining company, which was founded by influential Armenian politician Hovik Abrahamyan (Chairman of the Parliament at the time, currently the Prime Minister), gained a licence for gold mining in Meghradzor mine, Kotayk province.
However, foreign investors from the West, Russia and China own most of the mines.
Armenia is quite rich in metal deposits:
Today, there are seven copper-molybdenum, four copper, fourteen gold, two iron, two polymetallic and one aluminum mines.
Kapan – city of miners?
The town of Kapan with its forty thousand inhabitants was known as a sanctuary for a legendary Armenian hero and fighter for liberty David Bek in the distant past. Since the 19th century, the town is inherently connected with ore mining. Mining facilities were built there in cooperation with French mining experts in 1890. However, the significant mining industry development in Kapan began with a new Bolshevik government and with their emphasis to heavy industry and related raw materials. New railways, roads and housing estates for Kombinat workers and even a small airport were built. Thanks to its strategic importance and specific location in the very south of the Soviet Union, the town gained its own peculiar status. According to Armen’s memories, who was raised in Kapan, the town was related more closely to Moscow rather than to Yerevan. “The mining industry was one of the key fields of Soviet economy. It was controlled directly by Moscow experts. Many experts from all over the Soviet Union were present in the town as well. There were many Russians, Ukrainians and so on. The town was quite multi-ethnic,” Armen remembers.
According to Dundee Precious Metals data, 35 km of tunnels have been created to date. Last year, its employees mined 29,935 ounces of gold, 998 tons of copper and 5,488 tons of zinc.
Jermuk – Where The Hot Spring Flows
The importance of this town can be found in its name. Jermuk or jermook means hot mineral spring in Armenian. There are many of them indeed near this favorite spa resort which is located about 170 km to the south-east of Yerevan. The first sanatorium here was founded in 1940. After World War II had ended, spas were built in rapid succession, so Jermuk became a favorite holiday resort for people from all over the Soviet Union. The town reached the height of its importance in the 1980s when it was populated by 10,000 permanent inhabitants. They were employed mostly in the local spa complex or in the nearby soft drinks factory. At present, there are only about 5,000 people living in the town. After the Soviet Union had broken up, most of the generously financed holiday benefits ceased to exist, therefore, many spa facilities had to be closed down due to economic reasons. Young people leave the town to work in Yerevan or abroad. Jermuk dies out slowly but steadily. However, it should change soon.
The Amulsar Project
Lydian International Ltd has been preparing the gold and silver mine in Amulsar since 2006. They would like to finish the necessary facilities by 2016 and to begin mining the same year. There are three villages near the intended open mine: Saravan, Gndevaz and Goray. They all are not farther than 7 km from Amulsar. The nearest town is Jermuk in the distance of 14 km.
The public was upset because of the project location in the vicinity of the spa town. The main objections are:
NoiseThe project opponents say that many heavy lorries and particularly intensive mining itself with constant blasting will cause heavy noise. It will impact the quality of life for people living in nearby villages and animals as well.
The mining company claims that they are striving to plan their activities in a way which ensures the lowest noise disturbance possible. Jermuk should not be affected by noise at all.
Danger to fauna and floraThe mining itself as well as many related activities will have an impact to many local animals and plants including threatened species. It means, for instance, the brown bear or the rare mountain plant Potentilla porphyrantha, which is even classified as endangered species in the Armenian Red Book of Strictly Protected Animals and Plants. Lydian International admits that mining can have an affect on these threatened species. Therefore the company wants to relocate them outside the mining impact area and support projects for their protection.
Water and soil contaminationJermuk is known around the world for its water. The concern about polluting water sources near the Lake Sevan Reserve is one of the most frequent objections. The mining company states that the mine complies with all national and international standards, so the water sources pollution risk is very minimal.
Tourism impactWould you like to spend your holiday near an open mine with daily rock blasting, lorries going back and forth and omnipresent dust spreading everywhere? This could be a summary of the frequent arguments about the impact on tourism in Jermuk. On the other hand, Lydian International points to the distance between the mine and the town and the planting of new trees (4,000 to date) which should reduce the visual impact of the mining activity.
OmbudsmanThe objections against the Amulsar mining project are now topics for the ombudsman of the International Financial Corporation, which belongs to the World Bank Group. The complaint represents officially 148 inhabitants of Gndevaz, a village in the vicinity of the mine. Besides the aforementioned questions, they mention lack of information provided by Lydian International Ltd as well. The issue is so complex that the ombudsman’s office decided to merge the complaint with another request for an investigation. Therefore, the final decision is not to be known soon.
Warning of Chief SeattleMining is an inseparable part of Armenian life. It is a source of livelihood for Ashot, thousands of his colleagues and their families. Just like other human activities, mining does not have only positive impacts. Makedon and many other people living near the intended mine in Amulsar realize that. However, life is not only black and white. It is impossible to impose a ban on mining and gather resources by alternative ways only. On the other hand, unrestricted mining could make true the words of legendary American Indian chief Seattle: “When the last tree is cut and the last fish killed, the last river poisoned, then you will see that you can’t eat money.”
Mining and related industries is a permanent dialogue between humans and nature; the dialogue about current needs and the future shape of the world we will leave to our children.
