MINEX Forum

Tag: Azerbaijan

  • Anglo Asian Mining PLC Mines First Ore from Gilar Underground Deposit at Gedabek

    Anglo Asian Mining PLC Mines First Ore from Gilar Underground Deposit at Gedabek

    Anglo Asian Mining PLC, an AIM-listed gold, copper, and silver producer focused on Azerbaijan, has successfully extracted the first ore from its new underground mine, Gilar, located at the Gedabeksite.

    A maiden JORC mineral resources estimate, released on 11 December 2023, revealed that the Gilar deposit holds 6.10 million tonnes of mineralisation, with average grades of 0.88% copper (totaling nearly 54,000 tonnes) and 1.30 g/t gold (containing over 255,000 ounces).

    Earlier this month, the company mined 1,267 tonnes of ore from Gilar, averaging 0.65% copper(peaking at 1.63%) and 1.36 g/t gold (reaching up to 3.27 g/t). While development tunnels are still under construction, the extracted ore will be stockpiled until processing begins.

    Anglo Asian aims to steadily increase production in the coming months, targeting 50,000 to 60,000 tonnes of ore per month.

    Reza Vaziri, CEO of Anglo Asian, stated:
    “We are thrilled to reach this key milestone at Gilar after years of exploration and development. Our team’s dedication has been instrumental in this achievement. With 54,000 tonnes of copper and 255,000 ounces of gold confirmed, Gilar is pivotal to our strategy of becoming a mid-tier, copper-focused producer. We are now focused on scaling production to meet our monthly target.”

  • Azerbaijan’s Mining Industry Production Volume Revealed for 2024

    Azerbaijan’s Mining Industry Production Volume Revealed for 2024

    The production volume in Azerbaijan’s mining industry totaled 41.2 billion manats in 2024, according to data from the State Statistics Committee.

    This represents a decrease of 3.7 billion manats or 8.3% compared to the previous year. In 2023, the mining industry production volume was 44.9 billion manats.

    Key figures for 2024:

    • Metal ore mining: 382 million manats
    • Other mining sectors: 256 million manats
    • Mining industry services: 2.5 billion manats

    Other sectors within the mining industry also contributed to the overall production volume. The extraction of metal ores accounted for 382 million manats, while other mining activities generated 256 million manats. Additionally, mining-related services amounted to a production value of 2.5 billion manats.

    Despite the year-over-year decrease, the mining sector continues to play a major role in Azerbaijan’s economy, accounting for a significant portion of the country’s industrial output

  • Kazakhstan Explores Alternative Routes for Oil Transportation, Aims to Increase Transit Capacity through Azerbaijan

    Kazakhstan Explores Alternative Routes for Oil Transportation, Aims to Increase Transit Capacity through Azerbaijan

    The volume of crude oil transported through Azerbaijani pipelines from Kazakhstan could increase fivefold to 7 million tons per year, according to information provided by the press service of Azerbaijan’s state oil company, SOCAR, as reported by newshub.kz.
    Zaur Gakhramanov, an advisor to the head of SOCAR, revealed that repair works on an oil terminal near Baku are expected to be completed by the summer of 2024, enabling the annual movement of 10 million tons of black gold. The full operation of this facility would raise the transit capacity of the republic to 20-25 million tons of raw materials.
    Currently, over 90% of Kazakhstan’s oil is exported through the pipeline systems of Russia. To reduce dependence on Russia for hydrocarbon transportation, the authorities in Kazakhstan are exploring alternative routes.
    In 2023, 1.4 million tons of crude oil were transported through Azerbaijan’s pipelines. SOCAR anticipates that this figure will increase to 1.8 million tons in 2024 and further to 2.2 million tons in 2025.

  • Ministers of Azerbaijan and Hungary Discuss Strengthening Economic Partnership

    Ministers of Azerbaijan and Hungary Discuss Strengthening Economic Partnership

    Azerbaijan’s Minister of Economy Mikayil Jabbarov and President of SOCAR Rovshan Najaf met with Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó. According to the Ministry’s report to AZERTAC, it was emphasized that economic ties between the countries are continuously developing due to the special importance placed by the leadership of both countries on fostering relations and effectively utilizing existing potential.

    It was noted that the second strategic partnership document signed in January last year, along with more than 50 documents signed in the areas of investment promotion, economic cooperation, prevention of double taxation, and other fields, have created a solid foundation for expanding cooperation in various directions.

    The discussion included issues arising from the Cooperation Agreement between the Azerbaijan Investment Company OJSC and the Hungarian company Hell Energy, as well as the current situation. The parties exchanged views on joint projects that strengthen mutual economic ties, active cooperation in the fields of energy, transport, pharmaceuticals, activities of Hungarian companies in Azerbaijan, and the development of investment partnerships.

    During the meeting, a document was signed for the purchase of a stake in the Shah Deniz project by the Hungarian company MVM. It was noted that this document will further strengthen the economic and energy partnership between the two countries.

  • Anglo Asian Mining Unveils Major Copper Discovery in Azerbaijan

    Anglo Asian Mining Unveils Major Copper Discovery in Azerbaijan

    Anglo Asian Mining (AAM), a leading British mining entity operating in Azerbaijan, has disclosed a substantial copper finding at the Kharhar site, marking a significant milestone in the nation’s mining landscape.

    In adherence to Joint Ore Reserve Committee (JORC) standards, the revelation delineates a copper mineralization zone estimated at 24.9 million tons with an average copper content of 0.48%. Notably, from 22 million tons of ore, approximately 106,000 tons of copper have been identified, contributing to a total mineral reserve estimate of 119,000 tons.

    Scheduled for copper production initiation in 2026, AAM aims to extract approximately 9,000 tons annually over a span of seven years, leveraging open-pit mining methodologies due to the site’s favorable terrain.

    The original contract inked between Anglo Asian Mining and Azerbaijan in 1997 entailed the development of six sites, with Azerbaijan holding a 51% stake and Anglo Asian Mining possessing 49%. A revised agreement in September 2021 expanded this contract to cover eight areas, granting AAM rights to three additional blocks while ceding rights to one site.

    Industry analysts foresee substantial revenue streams stemming from the Kharhar site and other contract zones, underscoring the pivotal role of the mining sector in diversifying Azerbaijan’s economy away from oil dependence. Azerbaijan, in alignment with global standards, is actively exploring innovative techniques, seeking investments, and concentrating efforts on recently liberated territories known for their significant mineral reservoirs.

    Azerbaijan’s mineral resource base, as outlined in the State Programme for Geological Exploration and Efficient Utilization of Mineral Resources Base for 2020-2024, is undergoing comprehensive exploration and development, particularly in liberated territories rich in gold, mercury, copper, and other minerals.

  • Anglo Asian Mining Unveils Significant Copper Find in Azerbaijan

    Anglo Asian Mining Unveils Significant Copper Find in Azerbaijan

    Anglo Asian Mining (AAM), renowned for its expertise in gold, silver, and copper extraction in Azerbaijan, announced substantial copper mineralization at the Kharhar site in February 2024. Following Joint Ore Reserve Committee (JORC) standards, the estimated copper mineralization zone at the site stands at 24.9 million tons, boasting an average copper content of 0.48%. From 22 million tons of ore, 106,000 tons of copper have been identified, contributing to the total reserves of minerals at the site, which amount to 119,000 tons. Plans are underway for AAM to kickstart copper production at the Kharhar site by 2026, with an anticipated annual extraction of approximately 9,000 tons over the subsequent seven years. The favorable terrain at the site facilitates open-pit mining operations. Under a contract signed with the British company on August 21, 1997, encompassing the development of six sites, Azerbaijan retains a 51% share, with Anglo Asian Mining holding the remaining 49%. In September 2021, a new agreement expanded the company’s rights to three additional contract blocks, bringing the total to eight areas. Experts highlight that the development of the Kharhar site, alongside other contract areas, promises substantial revenue. The mining sector stands as a pivotal player in Azerbaijan’s non-oil sector development, with the nation actively aligning its industry with global standards, exploring innovative approaches and technologies, and seeking to attract investments. Attention is particularly focused on opportunities in liberated territories, which hold immense potential. The country continues to study and develop its mineral resource base, as outlined in the State Programme for Geological Exploration and Efficient Use of Mineral Resources Base for 2020-2024 and subsequent amendments. Estimates indicate abundant mineral deposits, including gold, mercury, copper, and more, within these territories. Positioned advantageously, Azerbaijan possesses rich reserves of diverse minerals and construction materials, positioning itself as a significant player in the regional mineral resources market.

  • US Imposes Sanctions on GeoProMining Over Illegal Gold Mining Activities in Azerbaijan

    US Imposes Sanctions on GeoProMining Over Illegal Gold Mining Activities in Azerbaijan

    The US Treasury Department has announced sanctions against GeoProMining for its involvement in illegal gold mining operations in the Kalbajar region of Azerbaijan during the Armenian occupation, according to a statement by the department. The mining company, which exploited mineral resources in Azerbaijani territories occupied by Armenia, has now faced repercussions under US anti-Russian sanctions.

    During the occupation, Armenian forces extensively exploited mineral deposits in Azerbaijani territories, including Karabakh and Eastern Zangezur. Notably, the largest gold mining zone in the region, situated in Kalbajar, has been under the operation of Russian company GPM Gold, a subsidiary of GeoProMining, since 2007.

    Despite its license permitting mining activities solely in the Armenian part of the mine, evidence suggests that operations extended into occupied Kalbajar, corroborated by satellite imagery. Furthermore, during the Second Karabakh War, GeoProMining reportedly bolstered its defenses in the mine by amassing weapons and deploying mercenaries to confront the Azerbaijani military.

    Additionally, Vartan Sirmakes, a Swiss entrepreneur and jeweler of Armenian descent, allegedly played a role in the exploitation of the Kalbajar mine. Gold extracted from Kalbajar and Zangilan was purportedly auctioned in Switzerland and stored in Swiss banks, implicating Sirmakes in the illicit trade.

  • Azerbaijan’s AzerGold seeks legal assessment of illegal actions by Armenia and some European companies

    Azerbaijan’s AzerGold seeks legal assessment of illegal actions by Armenia and some European companies

    Since its establishment, Azerbaijan’s AzerGold CJSC has been paying special attention to investigating the facts of illegal exploitation in Karabakh and Eastern Zangezur, Chairman of the Board of AzerGold CJSC Zakir Ibrahimov said at a press conference dedicated to the results of 2023 and upcoming tasks, News.Az reports.

    He noted that AzerGold continues its activities to achieve the legal assessment of the illegal actions taken by Armenia and some European companies. “This process, which we began before the Patriotic War, in 2018, acquired wider scope after the liberation of our lands from enemy occupation. Since 2022, AzerGold has been cooperating in this direction with the State Service for Property Issues under the Ministry of Economy,” Ibrahimov said.

    Ibrahimov also noted that since 2022, AzerGold CJSC has begun phased prospecting and exploration work at the Tutkhun precious metals deposit, located in the administrative territory of Kalbajar district.

    “Exploration work is carried out only in areas cleared of mines. Therefore, although we planned to conduct research on an area of 273 square kilometers, by the end of 2023 it was possible to carry out this work on only 57 square kilometers cleared of mines. This year it is planned to allocate another 32 square kilometers for geological exploration. Currently, specialists from the Mine Action Agency are working to clear the territory of mines and other unexploded ordnance,” he added.

  • The British Anglo Asian Mining has received permission to resume activities in Gedabek

    The British Anglo Asian Mining has received permission to resume activities in Gedabek

    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.

  • Anglo Asian Mining plc reduced its gold production in Azerbaijan by 41% from January to September

    Anglo Asian Mining plc reduced its gold production in Azerbaijan by 41% from January to September

    Anglo Asian Mining, a British company operating gold deposits in Azerbaijan, has reported a decrease in gold production for the period of January-September 2023 compared to the same period last year. The company produced 28,686 thousand ounces of gold equivalent (GEO), a decrease of 33.4%. This includes 18,771 thousand ounces of gold (a 41.3% decrease), 2,111 thousand tons of copper (an 11.6% increase), and 50,272 thousand ounces of silver (a 65.2% decrease).

    The Gedabek deposit contributed 17,348 thousand ounces of gold (a 41.3% decrease) and 7,924 thousand ounces of silver (a 64.2% decrease) to the company’s production.

    On the global market, Anglo Asian Mining sold 13,406 thousand ounces of gold bars (a 37% decrease) at an average price of $1,949 per ounce during the January-September 2023 period. This is compared to an average price of $1,727 per ounce in the same period in 2022.

    During the first nine months of this year, the company produced 12,194 thousand tons of copper concentrate, marking a 19.4% increase. Of this, 9,006 thousand tons were sold for $13,487 million, a 14.9% increase, according to Interfax.

    Anglo Asian’s President and CEO, Reza Veziri, acknowledged the impact of an environmental inspection conducted by Micon at the Gedabek mine on the company’s performance. The inspection led to a two-month halt of the flotation and agitated leach plant, as well as the cessation of production at the Gedabek contract area in August. Veziri stated that the company is working with the government to address the identified areas for improvement and emphasized that the allegations of environmental pollution were found to be unfounded.

    As of September 30, 2023, Anglo Asian Mining had $1.6 million in cash, compared to $9.6 million on June 30. Additionally, the company paid $4.6 million in final dividends for 2022 in the third quarter.

    Anglo Asian Mining implemented a hedging program, selling 1,000 ounces of gold bars for $1,959 per ounce, resulting in additional revenue of $27,075 per ounce. In total, the company sold 2,900 ounces of gold bars in the third quarter. The company currently holds unsold stocks of precious metals worth $7 million, including gold and silver bars valued at $5.9 million, and copper concentrate worth $1.1 million.

    Anglo Asian Mining conducts its precious metal production from the Gedabek and Gosha contract areas. The company plans to commence production from the Vejnali and Gilar deposits this year. Under the production-sharing agreement signed in 1997, Anglo Asian Mining holds the rights to develop eight contract areas in Azerbaijan, with the country’s share in the contract standing at 51%.

    For 2023, the company forecasts a production range of 30,000 to 34,000 ounces in gold equivalent. Specifically, Anglo Asian Mining expects to produce 22,000 to 23,000 ounces of gold and 2,100 to 2,200 tons of copper.

    According to the strategic growth plan for 2023-2028, the company aims to increase its production of precious metals in Azerbaijan. By 2028, the production is projected to reach 175,000 ounces GEO, marking a 3.2-3.5 times increase from 2023.