One of the main challenges facing the development of Azerbaijan's mining and metallurgical industry is the modernization of the legal and institutional framework, while another is the expansion of long-term financing opportunities, Economy Minister Mikayil Jabbarov said at a meeting chaired by President of the Republic of Azerbaijan Ilham Aliyev and dedicated to the "State Program on the Development of the Mining (Metal Ores) and Metallurgical Industry in the Republic of Azerbaijan for 2027–2030," APA reports.
The minister stated that, in order to modernize the legal and institutional framework, it is planned to prepare a new draft law "On Subsoil," introduce international reporting standards, and establish a unified electronic geological information database.
Mikayil Jabbarov also identified financing as one of the main challenges. According to him, since mining and metallurgical projects require substantial capital and long-term financing, greater use should be made of the resources of the private sector, banks, and international financial institutions alongside the state.
The minister noted that access to long-term loans, in particular, is one of the main problems facing the industry as a whole. In mining and metallurgical projects, it may take five years or longer from the adoption of a decision to the start of production.
"In this regard, it is important to expand access to loans with maturities of 10 years or longer and increase the participation of local banks in financing large-scale and long-term projects. There is also an objective challenge here. The fact is that our banks today may objectively lack sources of funding with such long maturities," Mikayil Jabbarov emphasized.
He added that opportunities for long-term and concessional lending in this sector are currently quite limited.
In this regard, the minister proposed developing policy measures for long-term financing and identifying appropriate financing mechanisms with the participation of the Cabinet of Ministers, the Ministry of Finance, the Ministry of Economy, the Central Bank, the State Oil Fund, and other relevant institutions.
Mikayil Jabbarov also identified improving tax, customs, and investment incentives to attract large-scale projects, expanding support for industrial and transport infrastructure, increasing scientific potential, and strengthening education-industry cooperation as important areas.
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