On November 13, 2025, in Beijing, the capital of the People's Republic of China, a contract was signed between “Azerbaijan Metal Company” LLC — a subsidiary of “Dashkasan Iron Ore” LLC — and China’s “Sinosteel Equipment & Engineering Co., Ltd” for the preparation of a bank-designated feasibility study (FS) for the construction of a hot briquetted iron (HBI) plant with an annual production capacity of 2 million tons.
The agreement was signed by Jeyhun Aliyev, CEO of “AzMC” LLC, and Hua Guanglin, CEO of “Sinosteel”. The total value of the contract is USD 1,510,000.
The feasibility study to be prepared within the framework of the project is considered a key phase for the construction and future operation of the planned HBI plant in the Shamkir district. The document, expected to be completed within four months, will serve as a primary reference for international institutions and banks involved in financing the construction project.
The feasibility study will ensure the identification of optimal technological solutions for the plant’s construction, planning of engineering and construction works, as well as the implementation of subsequent stages required for the full-scale development of the project.
It should be noted that “Sinosteel Equipment & Engineering Co., Ltd” is one of the key subsidiaries of the Chinese state-owned industrial corporation “Sinosteel Group Corporation Limited”, specializing in the processing and supply of metallurgical raw materials and metallurgical technologies. The company has extensive experience in developing iron ore deposits and ore processing, having implemented various industrial projects in China and other countries.
The company also provides services related to the establishment and management of iron ore processing facilities, including equipment integration, application of advanced technologies, and scientific approaches. Through the use of technologically advanced and environmentally safe extraction and processing methods, the company has ensured efficient resource utilization in countries such as Turkey, Australia, the Republic of South Africa, Algeria, India, and others.
It should be noted that the joint venture “Azerbaijan Metal Company” LLC was established on September 23 of this year by “Dashkasan Iron Ore” LLC — a subsidiary of “AzerGold” CJSC — together with Kazakhstan’s “Fonte GreenMet Investments Fund OEIC Limited”. The enterprise will engage in financing, designing, constructing, and future operating of the HBI plant with a capacity of 2 million tons per year.
The plant planned to be built in the Shamkir district is expected to be commissioned in mid-2029. The total investment cost of the project, which will be implemented using modern and environmentally safe technologies, is approximately USD 700 million.
Within the framework of the project, an annual contribution of USD 694 million to the country’s GDP is expected, along with the creation of approximately 1,600 direct and indirect jobs.
