In recent years, the financial system of Armenia has significantly strengthened, and the increase in banks' capital has expanded their opportunities to participate in the financing of large projects. Eduard Arakelyan, Head of Corporate Sales and Relationship Management Division of Ameriabank, stated this while speaking at the Mining Armenia Forum 2026.

According to him, if five to six years ago such participation was limited, in particular, by regulatory requirements, now local banks are ready to join the financing of large-scale investment projects. At the same time, the implementation of mining projects is associated with a number of challenges that must be taken into account by both investors and financial organizations.

One of the key issues is the predictability of the processes of obtaining permits and licenses. It is important for banks that the investor realistically assesses the timing of the necessary procedures and accurately reflects them in the investment plan. Uncertainty in this regard can affect the timing of the project’s implementation and its financial model.

Another significant factor is the fluctuation of metal prices and exchange rates. Even if the current market situation seems favorable, the investor should assess the consequences of a possible deterioration in conditions. For this, it is necessary to conduct stress testing, modeling a decrease in metal prices and significant changes in exchange rates, as well as determine whether the project has sufficient reserves to withstand an unfavorable period.

Particular attention should be paid to environmental and social responsibility. According to Arakelyan, these issues should be taken into account already at the initial stage of project preparation. It is important for the investor to maintain a regular dialogue with local authorities and the public from the very beginning to ensure the long-term and uninterrupted operation of the enterprise.

Another challenge is associated with the long payback period of the invested funds. Mining projects require significant initial investments, while revenues begin to be received after years. In such conditions, it is especially important to correctly combine sources of financing at different stages of the mine development and, if possible, attract funds from several financial institutions, reducing dependence on a single source of capital.

For lenders, not only the prospects of the mine and the potential profitability of the project are important, but also the investor’s ability to implement it within the planned timeframe, manage risks, and fulfill financial obligations.

Also, Arakelyan informed that the financing structure changes along with the development of the project.

At the geological exploration stage, uncertainty remains high, so the main source of funds, as a rule, is the investors’ own capital. At this stage, it is necessary to confirm the characteristics of the mine and assess the prospects for its exploitation. At the construction stage, banks can join the financing, and in some cases, international development financial institutions also, if the project meets their criteria.

When the enterprise is already operating and planning expansion, the opportunities for attracting funds become wider. In addition to financing provided by financial institutions, companies can use various types of agreements to ensure ongoing operations. According to Arakelyan, it is important to correctly combine capital sources at each stage, taking into account the changing risks and financial needs of the project.

Arakelyan emphasized that mining is also an important sector for Ameriabank. The bank’s main task in working with the sector is to provide advice to project initiators, find appropriate partners to attract financing, and accompany the financing organizing process.

The co-organizers of Mining Armenia Forum 2026 are the Mining Forum Development Foundation and the Armenian Mining and Metallurgy Association. The strategic sponsors of the forum, which is being held for the third time, are the Zangezur Copper Molybdenum Combine and the Lydian Armenia company, and the main sponsors are Ameriabank and Teghout CJSC.