Investment in mining industry to enable Azerbaijan to develop national economy - ANALYSIS
By Asif Aydinli
In February 2024, Anglo Asian Mining (AAM), a British company specializing in gold, silver, and copper extraction in Azerbaijan, reported significant copper mineralization at the Kharhar site. According to Joint Ore Reserve Committee (JORC) standards, the copper mineralization zone at the site is estimated at 24.9 million tons with an average copper content of 0.48%. Overall, 106,000 tons of copper have been identified from 22 million tons of ore. The total reserves of minerals at the site reach 119,000 tons.
Anglo Asian Mining plans to commence copper production at the Kharhar site in 2026, anticipating the extraction of about 9,000 tons of copper per year over the next seven years. Thanks to the site’s terrain, mining will be conducted through open-pit methods.
The contract with the British company was signed on 21 August 1997, covering the development of six sites. In the current contract, Azerbaijan's share is 51%, while Anglo Asian Mining holds 49%. In September 2021, a new agreement was signed, granting the company rights to three new contract blocks and cancelling rights to one site, thereby increasing the total number of contract areas to eight.
Experts note that the development of the Kharhar site, along with other areas under the contract, will generate significant revenue. The mining industry plays a key role in the development of Azerbaijan's non-oil sector. The country is actively adapting its mining industry to global standards, exploring new approaches and technologies, and aims to attract investments in this sector. Special attention is paid to opportunities in liberated territories, which possess significant potential.
The country’s mineral resource base is actively being studied and developed, as confirmed by the State Programme for Geological Exploration and Efficient Use of Mineral Resources Base for 2020-2024, and subsequent amendments to the programme in May 2022. According to estimates, the liberated territories contain numerous deposits of minerals, including gold, mercury, copper, and others.
Located in a geographically privileged position, Azerbaijan has rich reserves of various minerals and construction materials, making it a significant player on the regional mineral resources market. In particular, Kalbajar District is known as one of the richest in natural resources. Extensive geological exploration has been conducted here since the 1950s, resulting in the discovery and estimation of numerous mineral deposits. For example, until 1993, Kalbajar had deposits of 130 tons of gold and significant reserves of silver, tellurium, selenium, and mercury.
The Soyudlu deposit, partially located in Armenia, contains 23 gold-bearing veins, 17 of which are directly in Kalbajar. Additionally, the district hosts other significant deposits, including the Agduzdag and Gizilbulag gold deposits, and the Shorbulag and Agyatag mercury deposits.
Lachin District is also rich in gold deposits such as Shahkaram and Lalabagirli. The liberated territories offer a variety of construction materials, including marble, marbleized limestone, granite, tuff, basalt, and limestone, opening great prospects for the development of the construction industry.
The largest iron ore deposits in Azerbaijan are located in Dashkasan, which is sometimes called the "Azerbaijani Urals". The Dashkasan iron ore site has long been the primary supplier of iron concentrate for the metallurgical plant in Rustavi, Georgia. Besides iron, significant amounts of cobalt and aluminium ore are also mined in Dashkasan, highlighting the industrial potential of this area.
Dashkasan, located in the Lesser Caucasus, often referred to as the "Azerbaijani Urals", boasts the largest iron ore deposits in Azerbaijan. The industrial reserves of the Dashkasan iron ore deposit (categories A+B+C) are estimated at 250 million tons. For a long time, this deposit was the sole source of iron concentrate for the Rustavi metallurgical plant in Georgia. Additionally, the iron ore includes industrially significant cobalt ore with reserves sufficient for 90 years. Dashkasan District is also famous for its significant cobalt ore deposits and possesses the largest alumina ore deposit (alunite) in Europe.
In the northern part of Dashkasan District, near the village of Chovdar, there is a gold and silver deposit with confirmed reserves of 51.1 tons of ore, of which 11.4 tons are located on the surface, and the rest are underground.
Azerbaijan also has copper deposits in Gadabay and Kalbajar, while polymetals are mined at the Gumushlu (Nakhchivan), Mahmana (Agdara), and Filizchay (Balakan) deposits. Moreover, geological research continues at the Ortakand gold deposit in Julfa District of the Nakhchivan Autonomous Republic, where approximately 424,000 ounces of extractable gold are presumed to exist, and the reserves of the copper-porphyry deposit in Goydag are being assessed in Julfa.
Investment in the mining industry, coupled with modernization and reform, will enable Azerbaijan to use its extensive natural resources more effectively to support and develop the national economy. This will be a key aspect of strengthening the country's economic independence and accelerating its integration into the global economic system.
In February 2024, Anglo Asian Mining (AAM), a British company specializing in gold, silver, and copper extraction in Azerbaijan, reported significant copper mineralization at the Kharhar site. According to Joint Ore Reserve Committee (JORC) standards, the copper mineralization zone at the site is estimated at 24.9 million tons with an average copper content of 0.48%. Overall, 106,000 tons of copper have been identified from 22 million tons of ore. The total reserves of minerals at the site reach 119,000 tons.
Anglo Asian Mining plans to commence copper production at the Kharhar site in 2026, anticipating the extraction of about 9,000 tons of copper per year over the next seven years. Thanks to the site’s terrain, mining will be conducted through open-pit methods.
The contract with the British company was signed on 21 August 1997, covering the development of six sites. In the current contract, Azerbaijan's share is 51%, while Anglo Asian Mining holds 49%. In September 2021, a new agreement was signed, granting the company rights to three new contract blocks and cancelling rights to one site, thereby increasing the total number of contract areas to eight.
Experts note that the development of the Kharhar site, along with other areas under the contract, will generate significant revenue. The mining industry plays a key role in the development of Azerbaijan's non-oil sector. The country is actively adapting its mining industry to global standards, exploring new approaches and technologies, and aims to attract investments in this sector. Special attention is paid to opportunities in liberated territories, which possess significant potential.
The country’s mineral resource base is actively being studied and developed, as confirmed by the State Programme for Geological Exploration and Efficient Use of Mineral Resources Base for 2020-2024, and subsequent amendments to the programme in May 2022. According to estimates, the liberated territories contain numerous deposits of minerals, including gold, mercury, copper, and others.
Located in a geographically privileged position, Azerbaijan has rich reserves of various minerals and construction materials, making it a significant player on the regional mineral resources market. In particular, Kalbajar District is known as one of the richest in natural resources. Extensive geological exploration has been conducted here since the 1950s, resulting in the discovery and estimation of numerous mineral deposits. For example, until 1993, Kalbajar had deposits of 130 tons of gold and significant reserves of silver, tellurium, selenium, and mercury.
The Soyudlu deposit, partially located in Armenia, contains 23 gold-bearing veins, 17 of which are directly in Kalbajar. Additionally, the district hosts other significant deposits, including the Agduzdag and Gizilbulag gold deposits, and the Shorbulag and Agyatag mercury deposits.
Lachin District is also rich in gold deposits such as Shahkaram and Lalabagirli. The liberated territories offer a variety of construction materials, including marble, marbleized limestone, granite, tuff, basalt, and limestone, opening great prospects for the development of the construction industry.
The largest iron ore deposits in Azerbaijan are located in Dashkasan, which is sometimes called the "Azerbaijani Urals". The Dashkasan iron ore site has long been the primary supplier of iron concentrate for the metallurgical plant in Rustavi, Georgia. Besides iron, significant amounts of cobalt and aluminium ore are also mined in Dashkasan, highlighting the industrial potential of this area.
Dashkasan, located in the Lesser Caucasus, often referred to as the "Azerbaijani Urals", boasts the largest iron ore deposits in Azerbaijan. The industrial reserves of the Dashkasan iron ore deposit (categories A+B+C) are estimated at 250 million tons. For a long time, this deposit was the sole source of iron concentrate for the Rustavi metallurgical plant in Georgia. Additionally, the iron ore includes industrially significant cobalt ore with reserves sufficient for 90 years. Dashkasan District is also famous for its significant cobalt ore deposits and possesses the largest alumina ore deposit (alunite) in Europe.
In the northern part of Dashkasan District, near the village of Chovdar, there is a gold and silver deposit with confirmed reserves of 51.1 tons of ore, of which 11.4 tons are located on the surface, and the rest are underground.
Azerbaijan also has copper deposits in Gadabay and Kalbajar, while polymetals are mined at the Gumushlu (Nakhchivan), Mahmana (Agdara), and Filizchay (Balakan) deposits. Moreover, geological research continues at the Ortakand gold deposit in Julfa District of the Nakhchivan Autonomous Republic, where approximately 424,000 ounces of extractable gold are presumed to exist, and the reserves of the copper-porphyry deposit in Goydag are being assessed in Julfa.
Investment in the mining industry, coupled with modernization and reform, will enable Azerbaijan to use its extensive natural resources more effectively to support and develop the national economy. This will be a key aspect of strengthening the country's economic independence and accelerating its integration into the global economic system.
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