On September 23, Dashkasan Iron Ore LLC signed a joint venture agreement with Kazakhstan’s Fonte GreenMet Investments Fund OEIC LLC within the 1st Azerbaijan International Investment Forum (AIIF 2025) held in Baku.
The management and areas of activity of the joint venture – Azerbaijan Metal Company LLC – have been confirmed by the agreement, which was signed by Jeyhun Aliyev, CEO of Dashkasan Iron Ore LLC, and Yerzhan Mussin, CEO of Fonte GreenMet Investments Fund OEIC. Fonte GreenMet Investments Fund OEIC LLC operates under the management of Fonte Capital Ltd, one of the investment companies of Kazakhstan with diversified investment portfolio.
The newly established company will focus on financing, designing, constructing, and operating a Hot Briquetted Iron (HBI) plant with an annual production capacity of 2 million tons. The plant is planned to be built in the Shamkir region and to be launched by early 2029, applying modern and environmentally safe technologies.
The development of the Dashkasan iron ore deposit represents a large-scale initiative with the potential to deliver significant economic benefits to the Republic of Azerbaijan. However, several natural and logistical factors present considerable challenges. These include the relatively low average iron content of the ore (approximately 40 percent), the deeper location of the reserves, and the absence of direct access to international waterways—all of which substantially increase operational and transportation costs.
Considering these conditions, the production of higher value-added products has become a strategic necessity. To ensure the project’s efficient implementation, internationally recognized consulting firms were engaged to identify the most effective technological solution. As a result, an optimal three-stage production chain was defined, encompassing the manufacture of high-grade concentrate with an iron content exceeding 67 percent, the production of iron ore pellets, and the subsequent processing into hot briquetted iron (HBI).
The Bankable Feasibility Study for the beneficiation and pellet production stage is underway. Upon completion of the geological, metallurgical, technical, and economic assessments within this process, construction and development works for this phase of the project will commence.
The second phase of the project entails the establishment of a hot briquetted iron (HBI) plant with an annual production capacity of 2 million tons. Implemented under a joint venture agreement, this facility constitutes the most capital-intensive component of the Dashkasan iron ore project, with total investments projected at approximately USD 700 million. This project is being carried out with the participation of foreign investors to alleviate the financial burden on the state budget. The project is expected to contribute USD 694 million annually to the country’s GDP and provide employment of approximately 1 600 people.
The comprehensive implementation of all stages of the Dashkasan iron ore megaproject will have a significant impact on the socio-economic dividends for the region, by directly or indirectly creating about 4 000 workplaces. This initiative will support the production of export-oriented products and contribute to enhancing raw material security for Azerbaijan’s steel industry. The project will foster large-scale industrial synergy, ensuring the production of competitive products for both domestic and regional markets. Following the commencement of operations, it is expected to contribute approximately USD 13 billion to the country’s gross domestic product (GDP) over the subsequent period.
