British company Anglo Asian Mining, which is involved in the extraction of precious metals in Azerbaijan, has been granted permission to resume its operations in the “Gedabek” contract area.
Following the announcement of the immediate resumption of mining, Anglo Asian Mining’s shares experienced a significant increase of 42%, reaching 70.93 pence per share.
The gold, copper, and silver producer has signed a protocol with the government of Azerbaijan, outlining a plan of action to enhance its operations and procedures based on recommendations from a recent environmental audit conducted by Micon International Ltd.
“Most of the proposed measures will be implemented by the end of next year, and they will not require substantial costs,” stated the company.
Anglo Asian Mining highlighted that the prompt resumption of mining activities will result in the production of gold ore and copper concentrate returning to previous levels. The company has maintained its annual production forecast at 30-34 thousand ounces of gold equivalent.
“The remaining restart operations will be carried out gradually. The flotation plant is expected to resume operations in approximately 90 days, after raising the wall of the existing tailings dam,” the company explained.
It is worth noting that in late July, Micon representatives visited the Gedabek gold mine to conduct a comprehensive inspection at the request of the Azerbaijani government, focusing on environmental protection and safety measures.
In September, Anglo Asian Mining reported that radiation levels in the operational area were consistent with natural background conditions, with no issues regarding air quality, and no detection of cyanide exceeding the analytical limits in any soil sample.
During the audit, the need for modernization to enhance the handling and storage of reagents and other chemicals, as well as the implementation of emergency plans for incidents such as spills or cyanide-related incidents, was identified. Additionally, a technical-economic justification for alternative tailings storage facilities will be prepared.
The company also expressed its commitment to accelerating the development of the Gilar mine and “actively cooperating” with the government of the Autonomous Republic of Azerbaijan to ensure the successful implementation of work to further raise the existing tailings dam at the flotation plant.
Anglo Asian Mining currently operates in the “Gedabek” and “Gosha” contract areas. Gold extraction began in 2009 at the Gedabek deposit, and in September 2013, the company commenced development in the “Gosha” contract area. This year, mining is planned to commence at the Vejnali and Gilar deposits.
The PSA-type contract, signed on August 21, 1997, provided for the development of six deposits, with Azerbaijan holding a 51% share in the contract and Anglo Asian Mining PLC holding the remaining 49%. Currently, the company holds the rights to develop eight contract areas in Azerbaijan.
In 2022, Anglo Asian Mining mined 43,114 thousand ounces of gold in Azerbaijan (an 11.4% decrease compared to 2021), 182,046 thousand ounces of silver (a 17.8% increase), and 2,516 thousand tons of copper (a 5% decrease). In global markets, 34,918 thousand ounces of gold ingots were sold in 2022 (an 11.7% decrease) at an average price of $1,783 per ounce.