Anglo Asian Mining signs deal for extra copper concentrate supplies from Azerbaijan field
By Nigar Orujova
Anglo Asian Mining, a company extracting precious metals in resource-rich Azerbaijan, has signed a contract with US company Seagate Minerals and Metals for the additional supply of copper concentrate produced at the Gadabay mine, the company said.
According to the contract terms, Anglo Asian Mining will supply about 750 tons of copper concentrate in July-August 2013, in addition to 200 tons already delivered at the end of 2012.
The company's head Reza Vaziri said, "We are delighted to have secured this additional sales contract with Seagate, which will see our copper concentrate products adding to our bottom line at Gadabay and in turn increasing our profitability.
"In addition, we are delighted to report that our new agitation leaching plant at Gadabay, which was commissioned to increase our primary gold production, has performed well to date and we remain on track to produce circa 60,000 ounces of gold for the full year 2013," he said.
The company also renewed a contract on the copper concentrate supply with the Switzerland-based Glencore, which was concluded in the fourth quarter of 2012.
Anglo Asian Mining has already delivered 1,750 tons of copper concentrate to Glencore, instead of the projected 1,500 tons, and plans to deliver another 550 tons by the end of 2013.
The company expects these copper contract sales will significantly contribute to Gadabay's cash costs bottom line to achieve a lowered operational cash cost of $450-$500 per ounce of gold by the end of this year.
Anglo Asian Mining, a cash generative and profitable gold and copper mining and exploration company, started gold and silver production in May 2009 and copper concentrate production in 2010 at the Gadabay mine.
In 2012, the company produced 50,215 ounces of gold, 20,133 ounces of silver and 502 tons of copper from the Gadabay field.
The company has the rights to develop six deposits in the south-west of Azerbaijan -- Gadabay, Ordubad, Gosha Bulag, Gyzyl Bulag, Vezhnali and Soyutlu, under a production sharing agreement signed in August 1997 with Azerbaijan's government.
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.