British company seeks access to deposits in Karabakh
By Sabina Alizade
Anglo-Asian Mining Plc, a British company specializing in the extraction of gold, silver, and copper, is actively working with the Azerbaijani government to gain access to contract projects in the Karabakh economic region.
In addition to its current contract projects in Gadabay and Gosha, Anglo-Asian Mining Plc is eager to expand its operations into new territories, including Karabakh. The company has already initiated preliminary work with the Azerbaijani government to secure access to regional assets and commence production in accordance with the terms of their contracts.
Despite initial efforts, the company has not yet officially gained access to the contract areas in Karabakh. Nevertheless, it continues to negotiate with the Azerbaijani government and actively prepare the necessary documentation related to its programme assets.
A significant step in this direction was the recent visit by the company’s technical team to the Damirli processing plant, demonstrating Anglo-Asian Mining Plc’s serious intent to expand its operations into new areas.
Currently, Anglo-Asian Mining Plc operates under contracts for the Gadabay and Gosha deposits, with gold production at the Gadabay site commencing in 2009 and the Gosha contract area becoming operational in September 2013. The production sharing agreement (PSA) between Anglo-Asian Mining Plc and the Azerbaijani government was signed on 21 August 1997, allowing for the development of six deposits with a 51% share for Azerbaijan and 49% for the company. Presently, the company has the right to manage eight contract areas in Azerbaijan.
Lawmaker and economic expert Vugar Bayramli stated in an interview with News.Az that the natural reserves in the liberated territories are abundant. Considering the substantial reserves in both Karabakh and East Zangezur, there are new opportunities for attracting foreign investment. Technology and innovation are crucial in the development of these deposits.
“For some time now, the Azerbaijani government has been discussing the involvement of foreign companies and the development of these deposits within the framework of modern technology and innovation. The goal is to utilize natural resources more efficiently and under better conditions, and to bring these resources to the global market,” Bayramli said.
The expert also noted that the natural reserves in Kalbajar and Zangilan, particularly gold, copper, and silver, are significant. While other regions, including Karabakh and East Zangezur, also have considerable natural reserves, the larger deposits in Kalbajar and Zangilan are expected to attract foreign investment.
“Such collaboration will not only contribute to the creation of new production areas in Azerbaijan but also increase the country’s export capabilities, leading to higher state revenues. Additionally, our gold reserves bolster our strategic reserves, as Azerbaijan has been one of the countries increasing its strategic gold reserves in recent years. This is important for Azerbaijan both economically and politically,” Bayramli emphasized.
He also mentioned that the development of gold deposits in Azerbaijan involves a state company, which ensures that state policy is coordinated and systematically implemented. Therefore, cooperation with and selection of companies are evaluated within this context.
“New companies or those being involved in this sector are expected to sign agreements that consider Azerbaijan’s national interests,” Bayramli added.
Emin Garibli, another economic expert, noted that Anglo-Asian Mining Plc has been operating in Azerbaijan since 1997 and has extracted gold from numerous deposits. In 2023, the company produced from 50,000 to 54,000 ounces of non-ferrous metals in Dashkasan and Gadabay.
“As we know, the state company AzerGold also operates in Gadabay, Dashkasan, and even in Balakan and Nakhchivan regions, extracting gold. Last year, Anglo-Asian Mining Plc reduced its gold production in Azerbaijan but increased its copper production. Following the restoration of our territorial integrity, it seems that the British company’s interest in these areas has grown. We know there are rich deposits in Kalbajar, Agdara, Zangilan, and Lachin. I believe this is a positive development. The involvement of foreign companies, the application of new technologies, and investment from countries like Turkey will attract more investments in the future, positively impacting the development of other industrial sectors,” Garibli said.
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