Armenia : Sustainable and Strategic Decision Making in Mining

This paper aims to inform Armenia's
policy dialogue on environmental and social issues in the
mining sector. The paper is based on the premise that for
the mining sector to have positive, long-term impacts in
Armenia, it is necessary to take into consideration the
short- and long-term environmental and social impacts of the
sector and to promote strategic planning and efficient
management of natural resources. The mining sector in
Armenia has yet to adopt global best practices in this
sector, and this paper aims to provide guidance on some of
the mechanisms that can be adopted to improve the governance
and overall impact of mining in the country. The document is
structured as follows: chapter one presents an introduction
to this thematic paper. Chapter two provides an overview of
the mining sector in Armenia, including its underpinning
institutional and regulatory framework. It also singles out
policy gaps and regulatory inconsistencies that need to be
addressed. Chapter three presents some useful lessons of the
application of SESA as a tool for sustainable planning of
mining development in the country. This chapter also
compares uses of an SESA versus Environmental Impact
Assessments and defines the need and use of CIAs. Chapter
four describes the principles of valuation of natural
capital as a means to complement traditional cost-benefit
analysis and comparisons of development alternatives in the
decision-making process. Chapter five looks at the design
and implementation of benefit-sharing mechanisms to ensure
that the mining activities lead to positive social impacts
across the country. Chapter six looks at the process of
determining and dealing with the social costs of mining in
Armenia. Chapter seven provides a series of conclusions and
recommendations as well as implementation challenges that
would summarize the application of such recommendations in
present-day Armenia and its mining sector.