YEREVAN, July 6. /ARKA/. Armenia’s gold reserves will increase significantly very soon, the head of the Central Bank Arthur Javadyan said to journalists on Thursday. ‘At the moment we do not need gold reserves, but very soon its reserves will reach quite serious indicators, "Javadyan stressed.

He said a gold refinery is being built now in the country with an internationally renowned company. "I am confident that very soon we will have more gold reserves than before 2004," Javadyan added.

In late 2003 the Central Bank made a decision not to use gold in its external gross reserves and sold 1.4 tons of gold for $17 million. The move was explained by 'the high liquidity on the gold market.'
The Central Bank said at that time that 'the high correlation between gold and the euro means that even without gold in international reserves the necessary level of diversification can be maintained and at the same time the yield on international reserves can be raised."

In 2004 the Central Bank converted the proceeds raised from the sale of gold reserves to pounds. After the pound gained 8.4% against the US dollar, the Central Bank's real return was about 13%, while the return on investment in gold could reach a maximum of 9%, solely due to an increase in gold price.

The net income from the sale of Armenia's gold reserves amounted to 3 bln Armenian drams. The entire gold reserve, which over the years was estimated at $18 million was sold at the best price - more than $400 per troy ounce.

Today, Armenia produces 4-5 tons of gold annually, and after the launch of new facilities by Lydian International, its volume will reach 10-12 tons either at the end of this year or early in 2018.

Lydian Armenia, developing the Amulsar gold deposit in Jermuk, is expected to produce the first gold bar in March 2018. The company pledged to invest $370 million in the project and create 700 jobs.

Lydian Armenia, a subsidiary of Lydian International, found in 2005, began developing the Amulsar deposit in 2016. Among its shareholders are the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC).

The Amulsar gold deposit is the second largest deposit in Armenia in terms of gold reserves, containing about 31 million tons of ore and 40 tons of pure gold. It is located in the southeast of the country, 13 km off the resort town of Jermuk, between the rivers Arpa and Vorotan .-- 0--