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Ibtissam El Assad

Armenia: An Emerging Frontier for Rare Earth Elements Investment

AN EXCLUSIVE INTERVIEW WITH:

Armenia: An Emerging Frontier for Rare Earth Elements Investment

As the global energy landscape rapidly shifts toward clean technologies, rare earth elements (REEs) have become critical materials powering everything from electric vehicles to wind turbines and advanced electronics. Amid the surge in demand, Armenia is emerging as an attractive new frontier for investors looking to tap into rare earth potential and support the global net zero transition.

Geological Potential and Strategic Position

Armenia’s geology shows promising indications of rare earth elements, particularly light rare earths like neodymium and lanthanum key components in permanent magnets essential for electric motors and renewable energy technologies. While Armenia’s rare earth sector is still developing, exploration has revealed surface level deposits in areas such as the Abovyan ore field near the capital Yerevan, alongside important discoveries of REEs as secondary products in existing copper and molybdenum mines like Kajaran and Teghut.

This strategic integration of rare earth recovery with established base metal mining presents a cost effective approach to capitalize on critical minerals without the need for new, standalone operations initially. As global markets seek diversified and reliable sources of REEs, Armenia’s mineral wealth positions it as a compelling, untapped opportunity.

Robust Government Support and Investor-Friendly Regulations

The Armenian government has signaled strong commitment to modernizing the mining sector, with a clear strategic focus on attracting international investment in critical minerals, including rare earths. A comprehensive modernization plan adopted in 2023 aims to improve geological data management, streamline permitting, and align environmental standards with international best practices.

Armenia offers an investor-friendly regulatory framework with transparent licensing processes, legal protection for foreign investors, and the ability for 100% foreign ownership without mandatory local partnerships. Royalties and taxation have been structured progressively to incentivize exploration and production activities, promoting long-term operational certainty for mining projects.

Economic Importance and Market Access

Mining is a cornerstone of Armenia’s economy, contributing around 7% to GDP and representing over half of the country’s merchandise exports. The sector is dominated by copper and molybdenum production, providing a solid foundation for integrating rare earth extraction into existing value chains. High quality infrastructure, skilled labor, and a geopolitically advantageous location bridging Europe and Asia enhance Armenia’s appeal as a mining hub.

International partnerships are growing, with western companies such as Hayasa Metals Inc., a Canadian exploration firm active in Armenia’s Urasar mineral district exploring copper, gold, and rare earth elements, and Global Gold Corp involved in base and precious metal projects. Hayasa Metals, notably, has signed agreements with major players like Teck Resources and is conducting extensive drilling and geochemical surveys to advance exploration. These collaborations with experienced western firms promise to accelerate Armenia’s emergence in the global critical minerals supply chain, while fostering local economic growth and job creation aligned with international standards

Sustainable and Future-Focused Mining

Armenia’s mining code emphasizes environmental responsibility and sustainable development, mandating comprehensive impact assessments and ongoing environmental monitoring. This forward looking approach aligns with global ESG (Environmental, Social, Governance) standards and the net zero agenda, making Armenia a responsible choice for investors prioritizing sustainability alongside profitability.

A Rare Opportunity for the Net Zero Economy

With increasing demand for rare earths driven by the energy transition, Armenia’s emerging rare earth sector represents an incredible opportunity to participate early in a promising market. The country combines geological potential, political commitment, investor-friendly policies, and strategic geography to position itself as an essential component of future critical mineral supply chains.

For investors seeking to support green technology development while diversifying their portfolios, Armenia offers a dynamic and accessible option. As exploration advances and production scales, Armenia’s rare earth elements will play a vital role in powering the technologies that underpin a sustainable, net zero future.

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