In order to talk about the development of the mining industry in Armenia, it is necessary to transition from a vicious phase to a favorable phase for the sector. Narine Tadevosyan, Senior Operations Officer at the Office of the World Bank (WB) in Armenia, stated this during a forum Friday dedicated to the country's mining industry.

"The sector is still poorly regulated, which leads to the slowing down of problem solving, which in turn creates a negative attitude towards the sector in the society. In addition, it increases investment risks and reduces the amount of quality investments, which leads to negative impacts on social and environmental sectors.

Until 2040, the output of the mining industry will decrease by 40 percent if the vicious phase is not overcome. The growth in the region will be 2.8 percent; that is, it will be two to three times lower than the growth rate of the entire economy. This will lead to a reduction in employment, especially in the provinces [of Armenia]. All this belongs to the vicious phase," said the WB official.

According to her, the favorable phase will lead to a decrease in investment risks, quality investments and, in general, an increase in the pace of the economy.

"In Armenia, as a result of the operation of new mines, the expansion of the possibilities of existing mines and a number of other measures, the growth of the industry can reach 6.2 percent, which will correspond to the average growth rate of the entire economy. Moreover, in the best case, new mines may appear in Armenia no earlier than 2030," Tadevosyan added.

She explained that the transition from a vicious phase to a favorable phase in the development of the mining industry in Armenia is possible by increasing the efficiency of geological research, developing the education sector, and solving the problem of the poor legacy of abandoned mines in the country.