Press release

15 Sep 2020 Yerevan, AM

Online conference on the Second National Report of the Extractive Industries Transparency Initiative of Armenia

The 2nd National Report of the Extractive Industries Transparency Initiative (EITI) of Armenia was presented during the online conference.

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On 14 September 2020, the Second National Report of the Extractive Industries Transparency Initiative (EITI) of Armenia was presented during the online conference hosted by Armenia’s EITI National Secretariat attended by members of multi-stakeholder group of EITI from Government representatives, mining companies and civil society representatives, as well as EITI International Secretariat and international partner organizations.

This is the second EITI Report published by Armenia. The report has been prepared by EY Armenia, selected as an Independent Administrator for preparation of the EITI Report for the second year in a row. It is one of the most important results of activities towards the implementation of the EITI Standard that Armenia was granted a highest status of a country with satisfactory progress during country’s EITI 1st validation. This achievement was preceded by capacity building activities, sector-related studies, legislative reforms, etc.

The EITI National Report is aimed at providing comprehensive information about the sector in one place, enabling stakeholders to use it for conducting analysis, initiating debates on key issues and embarking on reforms. The 2nd EITI report of Republic of Armenia is covering the fiscal year of 2018.

RA Deputy Prime Minister Tigran Avinyan, Chairman of RA EITI MSG delivered an opening speech at the conference and noted: "The Government of Armenia considers that the implementation of EITI requirements in our country promotes the transparency of public administration, the involvement of civil society, the fight against corruption. Therefore, it is clear that the Government of Armenia. The Multi-Stakeholder Group will continue its efforts to maintain and develop these high results of EITI by introducing sustainable mechanisms for regular disclosure of information and by expanding the scope of influence of the initiative.”

Mark Robinson, Director of the EITI International Secretariat, congratulated Armenia on the publication of the second EITI report, as well as on the excellent results of Armenia's first verification, especially considering Armenia's very recent involvement in EITI. Mark Robinson also described Armenia's success in revealing real owners as fantastic, emphasizing that Armenia can become a leader for other countries in this field.

In the first session of the online Conference the Independent Administrator EY Armenia presented the EITI Report of Armenia which has been developed in accordance to 2019 EITI Standard’s requirements, overview of the Armenian metal mining sector’s operations, Report’s findings and recommendations.

The second session of the online Conference was devoted to discussions on EITI implementation in Armenia and the current issues in the mining sector.

According to the EITI standard, reporting state agencies and mining companies have provided public reports, based on which the EITI National Report was developed. The latter includes information on the payments from the metal mining companies to state and community budgets and revenues received by the government, as well as information on reserves, volumes and value of production, export and local sales by commodity in the metal mining industry.    

The report describes in detail the legislative-institutional system of the Republic of Armenia in the metal mining field, the procedures for issuing mining permits, concluding contracts, the work carried out to disclose the beneficial owners, as well as the socio-economic and environmental impact of the mining industry, the process of reconciliation provided by mining companies and government agencies, recommendations on the reform of the EITI accountability process, the disclosures recorded in the EITI report and the legal arrangements implemented in the field by the moment of report preparation.

2018 EITI Report of Armenia has been prepared by the Independent Auditor EY auditing company and comprehensively presents the metal mining sector of Armenia following the 2019 EITI Standard and decisions of the EITI Multi-stakeholder Group (MSG) of Armenia. The report includes detailed information on:

  • Extraction, production, exports and employment
  • Legal and fiscal regime
  • Open contracts
  • Licensing processes
  • State and municipal taxes and payments
  • State revenue allocation
  • Beneficial Owners
  • Mandatory and voluntary socio-economic contributions.

The report is available on the EITI website by this link.

The Extractive Industries Transparency Initiative (EITI) is a global standard that promotes open and accountable management of natural resources. Its goal is to create a more transparent and accountable state and business systems, as well as to promote public dialogue, thereby guaranteeing mutual understanding between the stakeholders.

The preparation of the second national report was carried out with the support of the World Bank's Assistance Program for Armenia, and the online conference was supported by the United States Agency for International Development (USAID) through the Transparency International Anti-Corruption Center NGO’s  ‘’Promoting Transparent Accountability in the USAID” grants program.

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