This paper aims to informArmenia's policy dialogue on environmental and socialissues in the mining sector. The paper is based on thepremise that for the mining sector to have positive,long-term impacts in Armenia, it is necessary to take intoconsideration the short- and long-term environmental andsocial impacts of the sector and to promote strategicplanning and efficient management of natural resources. Themining sector in Armenia has yet to adopt global bestpractices in this sector, and this paper aims to provideguidance on some of the mechanisms that can be adopted toimprove the governance and overall impact of mining in thecountry. The document is structured as follows: chapter onepresents an introduction to this thematic paper. Chapter twoprovides an overview of the mining sector in Armenia,including its underpinning institutional and regulatoryframework. It also singles out policy gaps and regulatoryinconsistencies that need to be addressed. Chapter threepresents some useful lessons of the application of StrategicEnvironmental and Social Assessment (SESA) as a tool forsustainable planning of mining development in the country.This chapter also compares uses of an SESA versusEnvironmental Impact Assessments and defines the need anduse of Cumulative Impact Assessment (CIA). Chapter fourdescribes the principles of valuation of natural capital asa means to complement traditional cost-benefit analysis andcomparisons of development alternatives in thedecision-making process. Chapter five looks at the designand implementation of benefit-sharing mechanisms to ensurethat the mining activities lead to positive social impactsacross the country. Chapter six looks at the process ofdetermining and dealing with the social costs of mining inArmenia. Chapter seven provides a series of conclusions andrecommendations as well as implementation challenges thatwill summarize the application of such recommendations inpresent-day Armenia and its mining sector.
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