Azerbaijan gets 121M on export of precious metals
By Sara Israfilbayova
Azerbaijan, which well-known for its oil and gas deposits, has rich deposits of other natural recourses, as gold and silver.
Gold mostly is produced in Dashkasan (AzerGold CJSC) and in Gadabay (Anglo-Asian Mining, Britain) regions of the country.
AzerGold CJSC exported 60,552 ounces of gold and 86,806 ounces of silver during April-December this year.
The export of precious metals brought more than 121 million manats ($71.172 million) to the country’s economy.
The state-owned company AzerGold was founded on February 11, 2015, according to the decree of President Ilham Aliyev.
The main objective of the company is the study of precious and non-ferrous metal ore deposits, research, exploration, management, as well as extraction, processing and sale, implementation of new technologies in this field, modernization and efficient use of material and technical base, perform other activities related to the development of the industry.
The first gold and silver export of AzerGold CJSC was carried out in May 2017, selling 66 gold alloys, 16,000 of which were gold, 24,000 ounces - silver. The first export batch brought the country's income in the amount of $20.1 million.
Having successfully passed the procedures of KYC (Know Your Customer) and due diligence required by international refining companies, in April of this year AzerGold concluded a contract for the purification of precious metals with the well-known Swiss refining company Argor-Heraeus.
In order to create a feasibility study for the sulfide (underground) operation phase of the field, which is planned for 2021, after the end of the oxide (ground) phase of operation in 2020, active cooperation with international consulting companies is conducted.
One of the main strategic goals of the CJSC is to ensure sustainable and continuous development of the non-ferrous metals industry in the country.
A preliminary economic assessment of the polymetallic deposit Filizcay, located in the Balakan region, which is of great importance not only for Azerbaijan but also for Europe, is being conducted by the influential international consulting company.
In addition, in order to assess the reserves in another field - Mazimchay, located in the Balakan region, drilling operations were carried out.
Moreover, complex geophysical studies were carried out on the territory of the Ortakand site of the Goydag-Alinja deposit located in the Nakhchivan Autonomous Republic, meanwhile drilling and stock assessment are planned to be conducted in the near future.
High indicators, acquired in a relatively short period of time, led the company to the leading positions in the non-oil export of the country.
Anglo Asian Mining PLC has the right to develop six fields in south-west of Azerbaijan: Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu, in accordance with the Production Sharing Agreement (PSA) signed between RV Investment Group Services and the government of Azerbaijan.
The share of Azerbaijan in the contract is 51 percent, of the Anglo Asian Mining Plc. – 49 percent.
As a whole, it is planned to extract 400 tons of gold from these six deposits, in accordance with the contract.
The gold and silver produced there are sent to Switzerland for refining, and gold bars are delivered to the country and preserved by the government.
About 900 fields were registered in Azerbaijan's state and territorial balance of reserves of mineral resources. The Ministry for Ecology and Natural Recourses estimates that the country is able to produce about 10-15 tons of gold per year.
---
Follow us on Twitter @AzerNewsAz