BAKU, Azerbaijan, September 24. As part of the State Program, AzerGold CJSC is implementing four strategic projects with a total investment of approximately 3.63 billion manat ($2.1 billion), the Chairman of the Executive Board of AzerGold CJSC, Zakir Ibrahimov, said at a briefing held today, Trend’s correspondent reports from the event.
According to him, these projects include the “Soyudlu” gold mining project in the Kalbajar District, the “Ortakend” gold mining project in Nakhchivan, the “Filizchay” polymetallic project in Balakan, and the “Dashkesan” iron ore project.
“The total investment in these projects amounts to approximately 3.63 billion manat ($2.1 billion), and the total economic value is 60.4 billion manat ($35.5 billion). As is well known, mining and metallurgical projects require large capital investments and long-term financing. The President also noted at the meeting that, alongside government investments in this sector, opportunities to attract local and foreign private capital should be expanded,” Z. Ibrahimov said.
He noted that “AzerGold” plans to finance its strategic projects primarily through its own revenues and borrowed funds.
“At the same time, we are considering the possibility of attracting private and foreign investors, especially for large and capital-intensive projects. The projects I have listed will be financed through the company’s own and borrowed funds, the state budget, and contributions from potential investors. Only 10% of the funding will come from the state budget,” the chairman emphasized.
Ibrahimov reported that the first project to begin production, in chronological order, will be the Soyudlu gold deposit in Kalbajar.
“The project’s operational period, starting in 2028, is expected to last 9 years, with gold reserves of 1.03 million ounces, an economic value of 7.5 billion manat ($4.4 billion), and required investments of 425 million manat ($250.04 million). The project will be financed through AzerGold’s own and borrowed funds,” he said.
Noting that the second project is the Ortakend gold deposit located in Nakhchivan, Ibrahimov stated that production is expected to begin in 2029.
“The project’s operational life is 9 years, with gold reserves of 246,000 ounces, an economic value of 1.8 billion manat ($1.1 billion), and required investments of 255 million manat ($150.02 million). The project will be financed using AzerGold’s own funds and borrowed capital,” the chairman of the board of directors stated.
According to him, the addition of approximately 1.28 million ounces of gold reserves through the “Soyudlu” and “Ortakend” projects will enable the country to increase gold production and exports.
Production at the Filizchay deposit is scheduled to begin in 2031–2032. The chairman of the board of AzerGold stated that production at the Filizchay polymetallic deposit is scheduled to begin in 2031–2032.
“Over the 34-year operating period, we plan to produce 363,000 metric tons of copper, 2.7 million metric tons of zinc, and 1 million metric tons of lead. The project’s economic value is 29.7 billion manat ($17.4 billion), and the required investment is 1 billion manat ($590 million),” Z. Ibrahimov noted.
He reported that during the initial phase of the “Filizchay” project, AzerGold will hold 100% ownership of the deposit.
“It was emphasized that as operations progress, the economic value of the deposit will grow, and then, if necessary, the involvement of foreign investors in the project on a certain equity basis may be considered,” the chairman added.
According to Ibrahimov, the implementation of the “Filizchay” project will create new export opportunities and conditions for the development of a new industrial sector in the country.
“At the same time, this will give impetus to the region’s socioeconomic development, the creation of new jobs, and the formation of related industries around the mining sector. The project’s implementation will also create new opportunities for local contractors and service providers working in manufacturing and processing, as well as logistics and other service sectors, to expand their operations,” he said.
The chairman of the board of directors also announced that production at the Dashkesan iron ore project is scheduled to begin in 2030.
“The project, which includes mining, beneficiation, pipeline, pelletizing, and hot-briquetted iron ore (HBI) plants, plans to produce 40 million metric tons of HBI products over 20 years of operation. The project’s economic value is 24 billion manat ($14.1 billion), and the required investment is 1.95 billion manat ($1.1 billion). Funding will be provided through the state budget, borrowed funds, and investor participation,” Z. Ibrahimov said.
According to him, the ore mined at the Dashkesan mine as part of the project will first be processed at a concentrator to be built on the mine site and turned into concentrate.
“The concentrate will then be transported to a plant planned for construction in the Shamkir region for the production of pellets. To this end, plans are in place to construct a slurry pipeline over 40 kilometers long, the first of its kind in the country. In the final stage of the production chain, the pellets will be used to produce hot-briquetted iron, one of the main raw materials for the steel industry,” he noted.
Moreover, Ibrahimov reported that the plant, with an annual production capacity of 2 million metric tons, will be built in the section of the Western Industrial Park (Garb Senaye Park) located in the Shamkir region.
“The implementation of this project will help establish a sustainable raw materials base in the country for the production of high-quality steel. Annual production of 2 million metric tons will meet the needs of the domestic market, and any surplus will be exported. This will help, on the one hand, reduce dependence on imports and, on the other hand, expand export potential, develop the non-resource sector, and generate additional revenue for the state budget,” the chairman of the board of directors of AzerGold emphasized.
