{"id":146224,"date":"2026-07-27T13:35:37","date_gmt":"2026-07-27T13:35:37","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=146224"},"modified":"2026-07-27T13:41:28","modified_gmt":"2026-07-27T13:41:28","slug":"armenia-mining","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/armenia-mining\/","title":{"rendered":"Armenia: Mining"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-146224","comparative_guide","type-comparative_guide","status-publish","hentry","guides-mining","jurisdictions-armenia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ameria CJSC<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/07\/Ameria-Logo-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ameria CJSC<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/07\/Ameria-Logo-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Mining laws and regulations applicable in Armenia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Legal framework for mining<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Armenia possesses significant deposits of copper-molybdenum ores, gold and polymetallic ores containing zinc, lead, silver and other associated minerals. The country&#8217;s principal copper-molybdenum deposits are concentrated in the Syunik region, with additional significant deposits located in the Lori region. Armenia also has notable gold deposits, including those located at Mghart, Meghradzor, Sotk and Amulsar. Gold is extracted both from dedicated gold deposits and as an associated mineral in copper and polymetallic deposits in various regions of the country.<\/p>\n<p>In addition to metallic minerals, Armenia is rich in non-metallic mineral resources, including tuff, basalt, granite, perlite and scoria, which are extensively exploited for construction and industrial purposes. Armenia is also renowned for its mineral and spring water resources, which constitute an important natural resource of the country.<\/p>\n<p>Although certain prospective oil and natural gas occurrences have been identified in Armenia, no commercially significant hydrocarbon production has been developed to date. Exploration activities have not yet resulted in the discovery and development of commercially viable oil or natural gas reserves.<\/p>\n<p>Armenia is a civil law jurisdiction, with a legal system primarily based on codified legislation, where laws and other normative legal acts constitute the principal sources of law. Although the interpretations and legal positions adopted by the higher courts, particularly the Constitutional Court and the Court of Cassation, carry significant persuasive authority and contribute to the uniform application of legislation, judicial precedents do not have binding force in the same manner as they do in common law jurisdictions.<\/p>\n<p>Armenia is a party to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention). Accordingly, foreign arbitral awards may be recognised and enforced in Armenia upon recognition by the competent Armenian court, subject to the requirements and limitations set forth in the New York Convention and Armenian law.<\/p>\n<p>The Subsoil Use Code of the Republic of Armenia (the \u201cSubsoil Use Code\u201d) constitutes the principal legislative framework governing subsoil use and mining activities in Armenia. Its scope extends to all categories of mineral resources, including metallic and non-metallic minerals, as well as oil and natural gas. At present, Armenia has not adopted separate sector-specific legislation regulating oil and natural gas operations. The transitional provisions of the Subsoil Use Code envisage the adoption of such legislation, and the legal framework governing the specific aspects of exploration, extraction and other subsoil use activities relating to oil and natural gas is intended to be further developed through dedicated laws. Pending the enactment of such legislation, these sector-specific matters are currently regulated by decisions of the Government of the Republic of Armenia.<\/p>\n<p>In addition, mining activities are subject to a broader framework of environmental and technical safety legislation, including, inter alia, the Laws of the Republic of Armenia \u201cOn Environmental Impact Assessment and Expert Examination\u201d, \u201cOn Protection of Atmospheric Air\u201d, \u201cOn State Regulation of the Assurance of Technical Safety\u201d and \u201cOn Waste\u201d, as well as other related legislative and regulatory acts.<\/p>\n<p>The Ministry of Territorial Administration and Infrastructure of the Republic of Armenia (\u201cMTAI\u201d) is the principal governmental authority responsible for the administration and regulation of subsoil use activities in Armenia, including, inter alia, the granting, amendment, extension and termination of subsoil use rights. The Environmental Protection and Mining Inspection Body is the competent regulatory and enforcement authority responsible for monitoring and ensuring compliance with the legislation governing environmental protection and subsoil use, including compliance with mining safety requirements, environmental obligations and other statutory requirements applicable to mining activities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have a critical or strategic minerals policy? If so, please provide a brief description.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Although Armenia possesses significant deposits of minerals that are commonly regarded as critical or strategic in international markets, including copper, molybdenum and certain polymetallic minerals, no specific legislative or policy framework currently grants such minerals a special legal status or subjects them to a separate permitting, ownership or investment regime.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the government in your jurisdiction provide state support for the mining industry (whether in your jurisdiction or abroad), for example by way of grants, loans, revenue support mechanisms or tax incentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No dedicated mining-industry grants, subsidies, royalty support schemes or state financing programs currently exist, although mining companies may access general investment incentives available to businesses in Armenia, provided that the relevant eligibility requirements are met. The state does not provide direct financial support for the acquisition or development of mining assets abroad.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on foreign investment into the metals and mining [sector\/value chain]? If so, briefly outline the regime, including:  -\tWhich types of investments, investors, and transactions are subject to the restrictions? -\tDoes the acquisition of minority interests fall within the scope of the restrictions? -\tDo the restrictions apply to asset acquisitions? -\tAre there any pending proposals to amend the foreign investment review policy or related legislation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no direct restrictions on foreign investment into the metals and mining and screening procedures specific to foreign investments into the metals or mining. Armenia generally maintains an open foreign investment regime and does not impose sector-specific restrictions on foreign ownership or investment in the metals and mining sector. Foreign investors may acquire and hold interests in mining companies and may obtain subsoil use rights through locally incorporated entities or foreign entities.<\/p>\n<p>While investment screening regimes have become increasingly common in a number of jurisdictions globally, no draft legislation establishing a comparable general screening framework has been adopted in Armenia to date. Any policy discussions concerning the regulation of foreign investment appear to relate to the investment framework as a whole and are not specific to the mining sector.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on foreign investors repatriating their capital, profits, interest, dividends, or other related returns from mining investments in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Armenian legislation generally permits foreign investors to freely transfer abroad profits, dividends, capital, proceeds from the disposal or liquidation of investments and other investment-related payments after satisfaction of applicable tax liabilities and compliance with mandatory legal requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on exports of any minerals and metals from your jurisdiction (for example, a ban on export of raw materials or government licenses or quotas required for the export of minerals)? Are there any local beneficiation requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Certain categories of mining products are subject to export licensing requirements pursuant to the Treaty on the Eurasian Economic Union and the acts of the Eurasian Economic Commission governing non-tariff regulation within the EAEU. These categories include, among others, precious metals, precious-metal ores and concentrates, raw materials containing precious metals, and certain mineralogical materials and gemstones designated under the applicable EAEU legislation.<br \/>\nThe applicability of export licensing requirements is determined by reference to the customs classification and characteristics of the relevant product.<\/p>\n<p>Accordingly, certain non-ferrous metal concentrates, including copper concentrates, may be subject to export licensing requirements where they qualify as raw materials containing precious metals.<\/p>\n<p>It should be noted that the Armenian regulatory framework has historically been subject to ad hoc export control measures. In particular, during 2021\u20132022, the Armenian Government introduced a temporary export licensing regime applicable to certain mining products, including copper concentrates, molybdenum concentrates and certain related products. Although this regime was subsequently repealed, it demonstrates the Government&#8217;s ability to impose temporary export control measures in respect of mining products in response to economic, fiscal or policy considerations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any tariffs imposed by the government in your jurisdiction on export or import of minerals and metals out of or into your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, the state duty payable for the issuance of import or export licences in respect of goods subject to non-tariff regulation under applicable EAEU and Armenian laws and regulations (including precious metals, precious stones, raw materials containing precious metals and certain other minerals) is AMD 1,000 (approximately EUR 2.5) per licence.<\/p>\n<p>Certain categories of precious metals are subject to higher state duties for the issuance of export licences, calculated by reference to the quantity of the exported product. For example, the fee payable for the issuance of an export licence in respect of goods classified under HS code 7108 (gold), other than gold-bearing alloys and concentrates originating in the Republic of Armenia, is AMD 180,000 (approximately EUR 430) per kilogram. For platinum group metals classified under HS code 7110, the applicable fee is AMD 90,000 (approximately EUR 215) per kilogram. In addition, temporary export duties and export licensing requirements applicable to certain mining products, including copper and molybdenum concentrates, were in force during 2021\u20132022. These measures were abolished with effect from 1 January 2023 and replaced by amendments to the mining royalty regime.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government or local party requirements for any type of project across the metals and mining value chain in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Armenian law does not impose mandatory government participation, state equity ownership, carried interests, local ownership quotas or similar local party participation requirements in mining projects. Mining rights may be granted to both Armenian and foreign legal entities, and there are no statutory requirements for the holder of a subsoil use right to include the State, a state-owned enterprise or a local partner as a shareholder or joint venture participant. Likewise, Armenian law does not generally require mining companies to satisfy minimum local ownership thresholds as a condition for obtaining or maintaining mining rights. Accordingly, participation of the Government, state-owned entities or local private parties in mining projects is generally a matter of commercial agreement rather than a statutory requirement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the legal nature of the mining rights and who owns them.  Can foreign investors own mining assets \u2013 or are JVs with local entities required?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The State of the Republic of Armenia is the exclusive owner of the subsoil. Rights to use the subsoil may be granted for the purposes of geological exploration and extraction of mineral resources. While subsoil use rights may be granted to private persons and entities, the subsoil itself may not be privatised.<\/p>\n<p>The subsoil may not be bought, sold, pledged or otherwise alienated. However, private ownership may arise in respect of minerals once they have been lawfully extracted in accordance with the applicable subsoil use rights and the requirements of Armenian law.<\/p>\n<p>Mining rights are granted by the State in the form of subsoil use rights and associated permits issued pursuant to the Subsoil Code of the Republic of Armenia. Such rights entitle their holder to conduct geological exploration and\/or extract mineral resources within a defined subsoil area, subject to the terms of the relevant permit and compliance with applicable legal and regulatory requirements. Although mining rights constitute proprietary rights, they may be transferred, pledged or otherwise encumbered only in the limited circumstances expressly permitted under Armenian law.<\/p>\n<p>Foreign investors may directly own and hold mining rights through locally incorporated Armenian entities and, in certain cases, through foreign legal entities where permitted by law. Armenian legislation does not generally require foreign investors to enter into joint ventures with local partners, nor does it impose mandatory local ownership or state participation requirements in mining projects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the land tenure in the mining context, e.g.  -\tis the mining tenure separate from land tenure? -\tthe surface land owners\u2019 rights and obligations vis-\u00e0-vis the rights of the owner of the minerals sitting under the surface land (access, compensation etc).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Armenia, mining tenure is legally distinct from land tenure. The subsoil is the exclusive property of the state and may not be privately owned. Rights to explore and extract mineral resources are granted by the state pursuant to a subsoil use permit and the corresponding subsoil use agreement entered into between the competent state authority and the subsoil user. Accordingly, the holder of a subsoil use permit does not acquire ownership of the subsoil or the minerals in situ, but rather enjoys a statutory right to conduct the relevant subsoil use activities within the designated mining area and subject to the terms and conditions of the applicable subsoil use permit.<\/p>\n<p>The grant of a subsoil use permit does not, in itself, confer ownership of, or any automatic right to access, occupy or use, the surface land situated within the mining area. Accordingly, a subsoil user may be required to acquire or otherwise secure the necessary rights over such land from the relevant landowners or land users, including the state, communities, natural persons and legal entities. Such rights may be obtained in the form of ownership rights, lease rights, servitudes (easements) or other legally recognised rights of use and are generally required to enable the subsoil user to carry out mining operations and construct, maintain and operate the associated mining infrastructure.<\/p>\n<p>As a general rule, extraction activities and the use of land for mining purposes may not be commenced unless the subsoil user has secured the necessary rights to the relevant land in accordance with the procedures prescribed by law, whether through agreement with the landowner or land user or through other mechanisms available under Armenian legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline regime for granting exploration rights, including:  -\tscope of the licence\/permit\/concession  -\ttypical term and extension rights  -\tprocess \/ steps to acquire exploration rights  -\tobligations of the licence\/permit\/concession holder  -\ttransition from exploration rights to mining rights -\ttypical timelines and costs for applications<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Subsoil use rights for geological exploration are conferred by an exploration permit issued by the Ministry of Territorial Administration and Infrastructure (MTAI). The permit is accompanied by a subsoil use agreement (geological exploration agreement) concluded between the competent state authority and the subsoil user. The approved geological exploration plan and the subsoil use agreement form integral parts of the permit and govern the authorised exploration activities.<\/p>\n<p>An exploration permit authorises its holder to undertake geological exploration within a specified area for the purpose of mineral extraction, including the identification and evaluation of mineral resources and, where applicable, the re-evaluation of mineral reserves. As a general rule, exploration permits are granted for up to three years and may be extended for up to three consecutive periods, each not exceeding two years. Following approval of mineral reserves, the permit may be further be extended for one additional year to allow preparation of the mining (extraction) project. A separate regime applies to permits issued for the re-evaluation of mineral reserves, which may be granted for up to three years and are generally not extendable, save that they may likewise be extended for one additional year following approval of the reserve re-evaluation report to enable preparation of the mining project.<\/p>\n<p>To obtain exploration rights, an applicant must submit an application together with the prescribed technical, environmental and corporate documentation, including the geological exploration plan, information on the mineral resources to be explored, evidence of the applicant&#8217;s technical and financial capability (for metallic mineral resources) and information regarding its ultimate beneficial owners. Additional governmental approvals are required for exploration in border lands, along border rivers and within customs control zones. The geological exploration plan is subject to an environmental impact assessment procedure and must receive a positive state expert opinion. The statutory timeframe for completing the principal permitting procedures is approximately six to seven months following submission of a complete application, although the overall timeframe depends largely on completion of the environmental assessment and other preparatory documentation. The principal costs relate to technical and environmental documentation, environmental assessment procedures, state fees and consultants&#8217; fees. No significant signature bonus or other mining-specific upfront payment is generally required.<br \/>\nExploration activities must be carried out in accordance with the approved geological exploration plan and the Subsoil Code. Permit holders are required to comply with reporting and disclosure obligations, submit geological information and exploration results, ensure the reliability of geological data, notify newly discovered mineral resources, comply with environmental management, monitoring and mining waste management requirements and, where applicable, fulfil reserve reporting obligations. Holders exploring metallic mineral resources are also subject to additional beneficial ownership disclosure requirements.<\/p>\n<p>Exploration rights do not automatically convert into mineral extraction rights. A separate application for mineral extraction rights must be submitted in accordance with the Subsoil Code. However, the holder of exploration rights enjoys a preferential right to obtain mineral extraction rights in respect of the mineral deposit explored under the exploration permit, subject to compliance with the applicable statutory requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the regime for granting mining rights, including:  -\tscope of the licence\/permit\/concession  -\ttypical term and extension rights  -\tsteps to acquire mining rights  -\tobligations of the licence\/permit\/concession holder<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Subsoil Code, a legal entity may apply for mineral extraction rights in respect of a mineral deposit or a geographically separated section thereof where the mineral reserves have been approved on the basis of a state geological expert examination within the ten-year period preceding the application. In the case of non-metallic mineral deposits, this ten-year limitation applies only to deposits whose reserves were evaluated and approved on or after 2021.<\/p>\n<p>Mineral extraction rights are granted by the Ministry of Territorial Administration and Infrastructure (MTAI) by issuing a mineral extraction permit. The approved mining (extraction) project, the mineral extraction agreement and the rock allocation act form integral parts of the permit and collectively evidence the holder&#8217;s mining rights. In addition to the right to extract minerals and process mining waste, the holder enjoys the exclusive right to undertake geological exploration and reserve re-evaluation within the boundaries of the mining allotment and to dispose of the extracted minerals.<\/p>\n<p>Applications for mineral extraction rights must be supported by the prescribed technical, environmental and financial documentation, including the mining (extraction) project, the mine closure plan, financial guarantees, information demonstrating the applicant&#8217;s technical and financial capability and, in the case of metallic mineral resources, information on the applicant&#8217;s ultimate beneficial owners. Depending on the location and nature of the proposed mining project, additional governmental approvals may be required. The mining (extraction) project is subject to an environmental impact assessment procedure and must receive a positive state expert opinion.<\/p>\n<p>The duration of a mineral extraction permit depends on the type of mineral resource. Permits for metallic mineral resources are generally granted for 25 years and may be extended for a further period of up to 25 years. Permits for non-metallic mineral resources are generally granted for up to 20 years and may be extended for a further period of up to 20 years. For new non-metallic deposits whose reserves were evaluated and approved on or after 2021, the grant or extension of a permit for the maximum statutory term is conditional upon the requested term being sufficient to allow extraction of all evaluated and approved balance reserves of the relevant deposit or geographically separated section thereof.<\/p>\n<p>The holder of mineral extraction rights must conduct mining operations in accordance with the mineral extraction agreement, the approved mining (extraction) project and the Subsoil Code. The principal obligations include compliance with operational, technical, environmental and reporting requirements, maintenance of geological and mine surveying records, reserve accounting and reporting, implementation of mine closure and land reclamation measures, environmental monitoring, mining waste management, protection of the environment and cultural heritage, and the submission of periodic geological and environmental reports. The Subsoil Code also requires the holder to carry out additional exploration and operational exploration concurrently with mineral extraction, periodically re-evaluate mineral reserves and comply with sample retention and quality control requirements. Holders of rights relating to metallic mineral resources are subject to additional beneficial ownership disclosure obligations, while certain project-specific requirements apply to mining operations in border areas and along border rivers.<\/p>\n<p>Failure to comply with the applicable statutory or permit requirements may result in administrative sanctions, including the suspension or termination of mineral extraction rights.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the royalties regime \u2013 i.e. any payments due to the government under any licenses and\/or leases described above.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Tax Code of the Republic of Armenia imposes a royalty on taxpayers engaged in the extraction of metallic mineral resources. The royalty is payable in respect of income derived from the sale of metallic mineral products, including products manufactured through the processing of mining waste.<\/p>\n<p>The royalty regime was substantially revised with effect from 1 January 2023. Under the current regime, the royalty is calculated by reference to a statutory formula incorporating three tax bases intended to reflect the gross turnover, profitability and windfall profit of the mining operation.<\/p>\n<p>The three tax bases are:<\/p>\n<p>&#8211; Base 1 (B1) \u2013 the taxpayer&#8217;s gross turnover from the sale of metallic mineral products. B1 is determined without deducting expenses and is subject to a royalty rate of 4%.<\/p>\n<p>&#8211; Base 2 (B2) \u2013 the taxpayer&#8217;s profit, calculated by deducting from B1 only those expenses expressly permitted by the Tax Code. B2 is subject to a royalty rate of 12.5%.<\/p>\n<p>&#8211; Base 3 (B3) \u2013 the taxpayer&#8217;s windfall profit, calculated in accordance with the statutory methodology prescribed by the Tax Code using B1 and B2 together with the applicable statutory adjustments and deductions. B3 is subject to a royalty rate of 15%.<\/p>\n<p>The royalty payable is determined by applying the statutory methodology to these tax bases. Accordingly, the effective royalty burden varies depending on the profitability of the mining operation and the applicable statutory adjustments.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to assign and\/or grant security over tenements in your jurisdiction? If so please briefly describe the process, including any regulatory requirements (e.g. approvals).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Subsoil use rights constitute transferable property rights under Armenian law but are not freely assignable. They may be transferred only in limited circumstances, principally in connection with the reorganisation of the right holder (including a merger, demerger, division, amalgamation or conversion) or through the enforcement of a pledge over the subsoil use rights. Transfers arising from a reorganisation and the creation of a pledge are subject to the prior approval of the Ministry of Territorial Administration and Infrastructure (&#8220;MTAI&#8221;).<\/p>\n<p>Subsoil use rights may be pledged only to secure purpose-specific financing provided to the right holder for the implementation of works or the performance of obligations under the relevant subsoil use permit, subsoil use agreement (mineral extraction agreement) or approved mining project.<\/p>\n<p>Upon enforcement, Armenian law does not permit the secured creditor to appropriate or privately dispose of the pledged subsoil use rights. Instead, enforcement must be effected through a public auction open only to legal entities eligible to hold the relevant subsoil use rights and admitted by the MTAI to participate in the auction. If the auction is unsuccessful, the pledgee may request the transfer of the pledged subsoil use rights into its ownership. Where the subsoil use rights are sold through a successful auction, no further approval from the MTAI is required for their transfer to the successful bidder.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline any indigenous or local community rights relevant in the mining context, including implementation of FPIC (Free, Prior, and Informed Consent) principles in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no statutory requirements comparable to the duty to consult indigenous peoples or to obtain free, prior and informed consent (FPIC) before granting exploration or mining rights. Local communities are, however, afforded certain procedural rights under the environmental and mining legislation. In particular, environmental impact assessment procedures require public notification, public consultations and the consideration of comments and proposals submitted by interested persons and affected communities. While the competent authority is not bound by such comments and proposals, any decision to depart from them must be duly reasoned and justified. In addition, local self-government bodies participate in certain permitting procedures and may provide opinions or approvals where required by law.<\/p>\n<p>Apart from the rights arising under environmental legislation, land legislation and general administrative law, Armenian law does not grant local communities a statutory veto over the grant of exploration or mining rights.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline the environmental protection regime applicable to the mining industry, including:  -\tWhat environmental impact assessments are required? -\tany requirements for rehabilitation bonds and guarantees -\tany mine closure obligations -\tconsequences for failure to comply with applicable environmental laws and regulations<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The environmental protection regime applicable to mining activities in Armenia is principally governed by the Subsoil Use Code, the Law on Environmental Impact Assessment and Expert Examination (the &#8220;EIA Law&#8221;), the Law on Atmospheric Air Protection, the Water Use Code, the Law on Waste, the Land Code and related secondary legislation.<\/p>\n<p>The EIA Law requires an environmental impact assessment (&#8220;EIA&#8221;) and a positive state environmental expert examination before a wide range of mining-related activities may be undertaken. The EIA requirement applies, among others, to geological exploration, extraction of metallic and non-metallic mineral resources, construction and operation of mining facilities (including tailings storage facilities), processing of ore and mineral resources, processing and disposal of hazardous mining waste, oil and natural gas extraction and processing projects, as well as the final closure of mining complexes. Depending on the nature and scale of the proposed activity, the EIA procedure includes screening (where applicable), preparation of an environmental impact assessment report, public notification and consultations, review by the competent authorities, and the issuance of a positive environmental expert opinion. A positive expert opinion is a prerequisite for obtaining the relevant subsoil use rights and other project approvals. Furthermore, the Subsoil Use Code prohibits the geological exploration or mineral extraction in the absence of a valid positive expert opinion in respect of the relevant exploration project or mining project.<\/p>\n<p>Mining operators are subject to ongoing environmental obligations throughout the life of the project. These include compliance with the approved environmental management measures and monitoring programme, implementation of environmental monitoring, submission of periodic reports to the competent authorities, compliance with applicable emission, discharge and waste management standards, and adherence to the conditions imposed by the environmental expert opinion and the relevant subsoil use permit.<\/p>\n<p>Armenian legislation also requires mining operators to undertake rehabilitation and mine closure measures. A mining project must include a mine closure plan providing for technical and biological reclamation of disturbed land, rehabilitation of affected areas, management of mining waste and tailings, long-term environmental monitoring where required, and other measures necessary to restore the site to an environmentally safe condition. Compliance with the approved closure plan is a condition of the subsoil use right. In addition, holders of mining rights are required to provide financial security in the form of a rehabilitation (reclamation) bond or other financial guarantee to secure the performance of rehabilitation and mine closure obligations. The amount and form of the financial security are determined in accordance with the applicable legislation and approved project documentation.<\/p>\n<p>Failure to comply with environmental legislation or the conditions of the subsoil use permit may result in administrative liability, mandatory remediation measures, suspension or revocation of environmental approvals or subsoil use rights, recovery of environmental damages and, in serious cases, civil or criminal liability under Armenian law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline if any specific health and safety regulations apply to the mining industry.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The mining industry is subject to the general occupational health and safety regime established by the Labour Code of the Republic of Armenia, the Law on State Regulation of Ensuring Technical Safety and related subordinate legislation governing occupational health, industrial safety and technical supervision.<\/p>\n<p>Mining operators are required to ensure safe working conditions, assess occupational risks, provide appropriate personal protective equipment and safety training, maintain emergency preparedness and response procedures, and comply with the technical safety requirements applicable to hazardous production facilities. In practice, mining facilities are generally classified as hazardous production facilities and are therefore subject to enhanced technical safety requirements and state supervision.<\/p>\n<p>The Subsoil Code supplements these general requirements by imposing sector-specific obligations on holders of subsoil use rights to conduct exploration and mining operations safely and in accordance with the approved mining (extraction) project and applicable technical and environmental standards.<\/p>\n<p>Compliance is supervised by the Health and Labour Inspection Body and the Technical Safety Authority, which may conduct inspections, issue mandatory compliance orders and impose administrative sanctions for non-compliance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Briefly outline any obligations for disclosure of climate change risks applicable across the mining value chain in your jurisdiction. Please specify if there are any pending proposals to amend the applicable law to introduce or extend these obligations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At present, Armenian legislation does not impose mining-specific obligations to disclose climate-related risks or climate-related financial information. Mining operators remain subject to general environmental reporting obligations under the Subsoil Code and environmental legislation, including environmental monitoring and reporting requirements. However, these obligations are directed at environmental compliance and do not constitute climate risk disclosure requirements.<\/p>\n<p>The recently adopted Law \u201cOn Climate\u201d establishes the legal framework for the future development of greenhouse gas accounting and reporting mechanisms. However, no mining-specific climate risk disclosure obligations or draft legislation introducing such requirements are currently known to be under consideration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any decarbonisation obligations applicable to the market players across the mining value chain in your jurisdiction? Please specify if there are any pending proposals to amend the applicable law to introduce or extend these obligations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At present, Armenian legislation does not impose mining-specific decarbonisation obligations on participants across the mining value chain. In particular, there are no mandatory greenhouse gas emission reduction targets, emissions trading schemes, carbon taxes or renewable energy requirements specifically applicable to mining operations.<\/p>\n<p>Mining operators remain subject to the general environmental regime, including environmental impact assessment, pollution control and environmental monitoring requirements, which may indirectly encourage the adoption of lower-emission technologies and more energy-efficient mining practices but do not impose legally binding decarbonisation obligations.<\/p>\n<p>Although Armenia has adopted a legislative framework supporting the transition to a low-carbon economy, no mining-specific implementing legislation or draft amendments introducing mandatory decarbonisation obligations for the mining sector are currently under consideration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any other relevant decarbonisation and climate change related laws and regulations in your jurisdiction  that could affect he market players across the mining value chain in your jurisdiction (e.g. carbon tax).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Apart from the general environmental legislation, the principal climate-related legislation is the Law on Climate, which entered into force in 2026. The law establishes the institutional and regulatory framework for climate change mitigation and adaptation, including the development of greenhouse gas accounting and reporting systems, a national measurement, reporting and verification (MRV) framework, and the future introduction of climate policy instruments, including carbon pricing and other market-based mechanisms. However, the law does not currently impose direct decarbonisation obligations on participants in the mining value chain.<\/p>\n<p>Armenia has not yet introduced a carbon tax or an emissions trading system, and there are no mining-specific greenhouse gas emission limits or mandatory decarbonisation targets. However, the Government has adopted an updated Nationally Determined Contribution (NDC) under the Paris Agreement and is progressively developing the regulatory framework necessary to implement its climate commitments. As a result, additional climate-related obligations, including greenhouse gas reporting and carbon pricing mechanisms, may be introduced through future implementing legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any unusual taxes that apply specifically to entities carrying out mining activities (in addition to the usual income and corporate taxes and excluding any carbon taxes that (if any) will be covered in the section above).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In addition to the mining royalty, mining companies are subject to the generally applicable Armenian tax regime. Corporate income tax (profit tax) is levied at a rate of 18% on taxable profits, while VAT is generally charged at 20%, with exports of goods generally subject to the 0% VAT rate.<\/p>\n<p>Mining operators are also liable for environmental tax in respect of pollution, emissions and waste generated by their activities, including emissions from stationary and mobile sources, discharges into water resources, and the placement and storage of mining and other industrial waste. In addition, where applicable, they are subject to natural resource use payments in accordance with the Tax Code. These payments are separate from the royalty and environmental tax regimes.<\/p>\n<p>Mining companies are further subject to immovable property tax, vehicle property tax, and the generally applicable employment tax regime, including withholding of employee income tax and mandatory funded pension contributions.<\/p>\n<p>The Subsoil Code also provides a limited statutory tax stabilisation mechanism. Upon the application of the holder of subsoil use rights, the rates of natural resource use payments (including royalties), corporate income tax applicable to resident entities and withholding tax on dividends, interest and royalties payable to non-residents that were in force at the time the mineral extraction rights were granted remain applicable for a period of three years, notwithstanding subsequent legislative changes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Other key regulatory and market developments<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>N\/A<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5491<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/146224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=146224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}