Under current laws, mining licenses can be issued without proper checks and assessments. While applicants are required to prepare and seek approval for four separate documents, it is very difficult for the Armenian government to revoke a mining license even if an operator breaches its stated commitments in the Environmental Impact Assessment (EIA) for proper waste management, water usage, tailing dam construction, mine closures or land rehabilitation.
Under MLRI's proposed changes, the mine application process will be tightened and government powers will be strengthened. The government will be able to revoke a mining license or halt operations in the event that a mining company pollutes the environment and deviates from its environmental management plan. Also under the proposed changes, all existing mine licensees will have a grace period to prepare new applications and comply.
If MLRI's changes are adopted, we'll see better environmental practices, unpolluted waterways, fewer irresponsible mine operations and a cleaner Armenia.
The MLRI’s proposed changes to the laws governing mine licensing in Armenia, serve the following MLRI policy objectives:
Governance
1. Clarity of legislation: For ease of doing business and business confidence, MLRI supports clarity and consistency in the mining sector legislation. Clauses in legislation must be consistent with corresponding clauses in co-dependent legislation to ensure that laws are clear and easily enforceable. Legislative clarity and will also minimize the risk of inadvertent human misconduct and corruption.
2. Proper cost-benefit analysis: A proper ethical cost-benefit analysis should be mandatory prior to the approval of mine operations. The benefits of a potential mining project must outweigh its negative impacts on current and future generations for the project to commence.
3. Mine licensing: The mine licensing application process and the conditions for mining operation must be clear and consistent. Laws must empower the mining licensee to operate with confidence while affording the Armenian government the power to revoke mining licenses or halt mining operations in cases where environmental and social damages have been caused.
4. Impact assessments: Guidelines to support the preparation of detailed and accurate Cumulative Impact Assessments (CIA), Environmental Impact Assessments (EIA), and Health Impact Assessments (HIA) should be made available to prospective mining companies in Armenia to enable them to assess precisely the impacts of their mining activities.
Environment
1. Waste management: MLRI supports the safe storage and disposal of residual wastes and process residues. Improper waste management practices should be deterred through strict governance, heavy fines and reparations.
2. Water: Water is a precious shared resource with high social, cultural, environmental and economic value. Access to clean water is a human right and is integral to the wellbeing and survival of communities. It is also essential to the healthy functioning of ecosystems and the services they provide. Thus, the management of water and water usage practices in the mining sector must be effective, efficient and sustainable.
3. Tailings: Tailings production is inherent to mining and minerals processing and will remain so for the foreseeable future. These tailing materials require engineered solutions for their long-term safe storage and sustainable management. Responsibility for the management of tailings falls with the mining company. The mining company may only be absolved of responsibility if necessary funds have been allocated for safe maintenance of the tailings site in perpetuity.
4. Mine closure: Designing, planning and allocating adequate human and financial resources to meet proper closure requirements are necessary for all mining operations. Comprehensive, environmentally sound and fully-costed closure plans must be presented prior to the commencement of mining operations and implemented as the final critical phase of the mining project.
5. Land rehabilitation: MLRI supports the rehabilitation of land disturbed or occupied by operations in accordance with appropriate post-mining land uses, particularly agriculture, forestry, energy production and tourism.
Social
1. Ethical status of land: Land for Armenians can be more than just an economic resource. The cultural significance of the land should be considered when assessing mining permissions. In instances where mining does take place, the culture, customs and heritage of local communities, should be managed.
2. Affected communities: Impacted communities should be actively involved in the decision-making and approval process. MLRI also supports the development of appropriate systems for continual interaction between affected communities, mining corporations and government representatives.
