AzerGold Closed Joint Stock Company (CJSC) will implement four major strategic projects under the “State Program on the Development of the Mining (Metal Ores) and Metallurgical Industries in the Republic of Azerbaijan for 2027–2030,” Chairman of the Board of AzerGold CJSC Zakir Ibrahimov said at a meeting chaired by President of the Republic of Azerbaijan Ilham Aliyev and dedicated to the State Program, APA reports.
He stated that the total investment required for the four projects amounts to approximately AZN 3.63 billion. About 10% of these investments is planned to be financed from the state budget.
According to Zakir Ibrahimov, the first project is the Soyudlu gold deposit. Initial production at the deposit is scheduled for 2028. The project's gold resources amount to 1.03 million ounces, and exploration work is ongoing. Therefore, the resources may increase.
He noted that, at current gold prices, the economic value of the Soyudlu project is AZN 7.5 billion, while the required investment amounts to AZN 425 million. The investment is planned to be financed through AzerGold's internal revenues and borrowed funds.
The Chairman of the Board stated that the second project is the Ortakand gold deposit, located in Nakhchivan. Initial production is scheduled to begin in 2029. The deposit has gold resources of 246,000 ounces and an economic value of AZN 1.8 billion. The required investment for the project amounts to AZN 255 million, with financing planned through AzerGold's internal revenues and borrowed funds.
According to Zakir Ibrahimov, the Filizchay polymetallic deposit is among the most complex deposits of its kind in the world due to geological and other factors.
The Filizchay project is scheduled to reach full operational capacity by the end of 2031. Over the deposit's 34-year operating period, resources comprising 363,000 tons of copper, 2.7 million tons of zinc, and 1 million tons of lead are expected to be brought into production.
The project's economic value is AZN 29.7 billion, while the required investment is approximately AZN 1 billion. The project is expected to be financed through AzerGold's internal revenues, borrowed funds, and varying amounts of investor funding.
The Chairman of AzerGold's Board noted that initial production under the Dashkasan iron ore project is scheduled for 2030. The project envisages establishing an annual production capacity of 2 million tons of hot-briquetted iron. The required investment amounts to AZN 1.95 billion.
The project is expected to be financed through the state budget, borrowed funds, and investor participation.
“Thus, as I mentioned, the four strategic projects require approximately AZN 3.63 billion in investment, and an application will be submitted for about 10% of this amount to be allocated from the state budget,” Zakir Ibrahimov said.
According to him, AzerGold, as the leading state-owned company in the national mining sector, will operate in four main strategic areas in accordance with the State Program.
“The first area is gold production and processing. Bringing approximately 1.28 million ounces of additional gold reserves from Soyudlu and Ortakand into production will significantly increase the country's gold exports,” the Chairman of the Board noted.
He added that the second area is ferrous metallurgy. Under the Dashkasan project, a production capacity of 2 million tons of hot-briquetted iron will be established, approximately 1.7 million tons of which will constitute export potential.
“The third area is non-ferrous metals. Preparing the copper, zinc, and lead resources at Filizchay for production will diversify our country's export portfolio and establish a new industrial sector,” Zakir Ibrahimov said.
He emphasized that the fourth area is the development of ancillary sectors of the mining industry. These projects will contribute to strengthening new production chains, service sectors, and overall industrial potential.
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