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In the last five years, Armenia’s mining exports have amounted to approximately USD $500 million annually, making it the country’s top sector in terms of export and inflow of foreign exchange. Mining companies are also significant job providers, especially in rural areas. In 2014, over 7,000 people were employed in the metallic mining sector, which is around 10 percent of those employed in the industrial branch of the economy, WB representatives reported during the launch of the Armenia Strategic Mineral Sector Sustainability Assessment on June 8.

According to press service of WB Yerevan office, the new Bank Assessment highlights the potential for economic growth fueled by the sector and the need for a national mining policy to maximize the sector's contribution to sustainable development.

The Government of Armenia requested that the World Bank evaluate the key social and environmental challenges and future opportunities for the mining sector.

“This evaluation can serve as a tool to develop a road map for creating a responsible, transparent mining sector that solidly contributes to country’s sustainable development,” said Davit Harutyunyan, Minister – Chief of Staff of the Republic of Armenia Government.

The Assessment recommends the government embark on a process of elaboration of a national mining policy to ensure sound regulation of the sector. The policy would also provide an opportunity to build consensus among stakeholders, which is crucial to promoting a sustainable, transparent and successful industry.

“The mining sector in Armenia could contribute to sustainable development. For this, the sector needs to be advanced in an environmentally and socially responsible manner and the benefits have to be equitably shared,” said Kirsten Hund, Senior Mining Specialist at the World Bank.

The report also recommends strengthening sector governance through implementation of the Extractive Industries Transparency Initiative (EITI). Armenia is currently preparing its candidature application to implement EITI, which will entail publicly disclosing information about the revenues extractive industries generate in the country, and then a three-way discussion between the government, private sector and civil society to deepen this transparency.

“The multi-stakeholder approach embraced by EITI will serve as an excellent base to build consensus around the proposed national mining policy,” said Laura Bailey, World Bank Country Manager for Armenia.

The Assessment was produced by a consortium of experts, comprised of the Swedish Geological AB; SLR Consulting Ltd; Avag Solutions LLC; the AUA Turpanjian Center for Policy Analysis; and the AUA Center for Responsible Mining.