Nuclear Power and Rare Earths Pique U.S. Interest in Armenia

• Armenia is trying to attract US diplomatic attention by highlighting trade and investment opportunities in mining and nuclear power.
• The US Embassy in Yerevan has shown support for Armenia’s decision to guarantee a $150 million loan for a US-Canadian gold mining venture.
• Armenia is considering bids from US, Russian, and South Korean firms to build a new nuclear reactor, potentially shifting away from reliance on Russia.

Armenia, a country making a geopolitical pivot away from Russia toward the West, is finding success in attracting US diplomatic attention by playing up opportunities for trade and investment in the mining and nuclear power sectors.

Since taking the reins of government in January, the Trump administration’s outlook on Eurasia has fixated on securing deals involving rare earths and nuclear power, underscored not only by the White House’s attempted minerals deal with Ukraine, but also via comments made by Secretary of State Marco Rubio during a late February conversation with Uzbekistan’s foreign minister.

Given the diplomatic focus on minerals in Washington, it is not a surprise that the US Embassy in Yerevan lauded the Armenian government’s decision on February 28 to guarantee a $150 million loan enabling a US-Canadian firm, Lydian Canada Ventures, to finish building extraction and smelting facilities for a gold mining venture. Environmental protesters forced a halt in 2018 to development of the Amulsar gold deposit and the venture had been in limbo since then. 

“Armenia is open for U.S. businesses, and the U.S. Embassy is proud to support as we work toward a more prosperous future together,” read an embassy statement posted on Twitter, now dubbed X.

Meanwhile, Armenian officials are dangling the prospect that a US firm could build a new nuclear reactor in Armenia to replace the outdated Metsamor power station. Firms from Russia, the United States and South Korea have reportedly submitted bids. David Khudatyan, the government minister overseeing the tender process, did not provide an indication of when the winning bidder would be announced.

“We continue to study proposals for the construction of a new nuclear station. … A decision has not yet been made,” Khudatyan stated during a recent cabinet meeting. Current plans call for the new nuclear facility to become operational within 10 years. The aging Metsamor plant, which supplies about 40 percent of Armenia’s power needs, is slated to undergo a refurbishment in 2026 to extend its lifespan until the replacement facility can go into service.

Russia’s Rosatom will update Metsamor and was long assumed as having the inside track on securing the contract to build the new plant. But the rapid deterioration of Armenia’s and Russia’s strategic partnership, coupled with Prime Minister Nikol Pashinyan’s eagerness to secure US backing for his “Real Armenia” initiative to remake the country’s political culture, would seem to raise the odds that the United States could emerge as the winner of the bidding process.

By Eurasianet.org

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