Assessment of Armenia’s mineral resources
“Armenia does not have major oil or gas deposits with significant reserves. Instead, it can rely on substantial reserves of copper, molybdenum and gold, as well as rare elements and critical minerals. Gold, silver, copper, molybdenum and polymetals such as lead and zinc are currently in greatest demand. However, so-called critical minerals are gradually becoming increasingly important,” geologist Arshavir Hovhannisyan says.
The head of the Mineral Resources Department at the Institute of Geological Sciences of Armenia’s National Academy of Sciences says the terms “critical minerals” and “rare-earth elements” are sometimes confused in Armenia. He explains that critical minerals are elements, mainly metals, that are particularly important for a country’s industrial development, especially in high-tech sectors.
“Rare elements and rare-earth elements are among critical minerals. Copper, for example, is a critical mineral because neither batteries nor electric motors can function without it, but it is not a rare element,” he told Armenpress agency.
Copper, gold and silver reserves, but copper is key
“Copper is the queen of metals, the most important metal.
“We also talk about the importance of lithium, but it is likely to be replaced in the foreseeable future. Lithium is a rather unsuitable chemical element for use in batteries. It is highly flammable, performs poorly at high and low temperatures and has a limited number of charging cycles, after which it becomes unusable.
“Scientists are now looking for alternatives to lithium. Sodium and potassium are the most likely candidates. China is already producing sodium batteries using extremely cheap raw materials.
“Sodium, along with chlorine, is one of the main components of table salt, and Armenia has vast reserves of it. Yerevan is largely situated on salt deposits. The Ararat Valley, from Armavir to Arzni, lies entirely on salt deposits. If necessary, Armenia would have no difficulty obtaining extremely cheap raw materials.
Gold and silver can also be used in electrical equipment. The only element for which there is currently no substitute is copper.
“Copper is to us what, say, oil is to some other countries.”
Armenia’s copper reserves could last decades
“Reserves will be depleted in around 50-100 years unless we discover new deposits in the meantime. I think new deposits could be found because we have done virtually nothing in this area for about 35 years.
“Deposits that were not considered particularly promising during the Soviet period may now attract interest. First, technologies for extracting metals from ore have advanced. Second, the price of copper on the global market is rising rapidly.
According to Bloomberg estimates, by 2030-2040 global demand for copper will reach a level requiring 10-15 new mines to be brought into operation every year.
“I mean mines comparable in size to the large Kajaran deposit.
“According to various estimates, producing a conventional passenger car requires 10-15kg of copper, while an electric vehicle requires more than 50kg. Tens of millions of electric vehicles are produced each year. Simple arithmetic therefore gives an idea of how much pure copper will be needed for the automotive industry alone, with production volumes expected to continue growing.
“There are also other sectors where copper is essential, including electrification, modern technologies and the infrastructure supporting them.”
Oil and gas not worth considering
“The geodynamic processes that took place over tens of millions of years in the territory where Armenia is now located have left virtually no prospect of large hydrocarbon reserves.
“A large number of deep wells were drilled in Voghjaberd for research purposes, and similar exploration was carried out in Armavir. Some traces were found, including small amounts of gas. These are remnants of deposits that once existed, as well as accumulations formed more recently, over the past 30 million years. Given the geology and location, these cannot be large volumes.
“There is little reason to expect oil and gas deposits to be discovered in Armenia in the future.
Small deposits could potentially be found at great depths. But even finding them would be extremely costly, as numerous wells would have to be drilled.
“Even then, it would not be clear whether the gas discovered would last a month, an hour or a year. In any case, the volumes would be so small that they are hardly worth considering.”
Areas where rare elements could be found
“Demand for rare-earth elements and other minerals has risen sharply worldwide, along with their prices. They are in high demand in modern high-tech manufacturing.
“They attracted little interest in the past, but technologies have changed. We need to understand what resources we have.
We cannot say there is no chance of Armenia having rare-element reserves. There are geological areas in the country that could contain them.
“Further research is needed to establish this. Our institute has a dedicated group studying rare-earth elements, funded by a grant from the Science Committee. The research does not have an industrial or applied research component and is purely scientific, but the fact that it is being conducted is itself a positive development.
“The research covers potential mineralisation of lithium, selenium, tellurium and rhenium. Meanwhile, more than 20 other rare-earth elements have not previously been studied.
“Some have been identified incidentally during other research. As demand for them grows, we will have to explore them, whether we want to or not. If the state does not do so, the private sector will.”
Investment needed to explore new deposits
“Armenia is indeed very rich in mineral resources, both metallic and non-metallic. Kajaran, Sotk, Agarak and Teghut are all located within a relatively small area covering around 30-35% of the country. Moreover, Kajaran is among the world’s 10 largest mines by scale.
“The difficulties are related not to geology but to the terrain. In many cases, mines are located at altitudes of around 3,000 metres, in hard-to-reach areas, and deposits are often relatively small.
The chances of discovering new large deposits comparable in scale to Kajaran or Zod [Sotk] are very low. The chances of finding medium-sized and small deposits are higher.
“Exploration of new deposits will become possible if the state creates the necessary conditions for investment and also invests itself. At the very least, this would give us a clearer picture of the rare elements and critical minerals in Armenia’s subsoil. This would then be followed by detailed exploration and reserve estimates, an even more labour-intensive and costly process.”
