Azernews.Az

President of the Republic of Azerbaijan Ilham Aliyev inspected the “Damirli” Ore Processing Complex, located in the village of Janyataq in the Aghdara district, on January 13, Azernews reports.

Minister of Economy Mikayıl Jabbarov and President and Chief Executive Officer of Azerbaijan International Mining Company Limited Reza Vaziri briefed the head of state on the complex.

The complex includes a copper flotation plant, a wet tailings storage facility, an electrical substation, and other infrastructure. Covering a total area of 929 hectares designated for mining and production, the complex has been reconstructed using Turkish and German technologies. Private investments amounting to 15.3 million manats were directed to the reconstruction and restoration works.

“Damirli” is the first mining industry project launched in Azerbaijan’s liberated territories. The copper flotation plant will process ore extracted from the “Damirli” deposit to produce the final product — copper concentrate. The plant’s annual processing capacity is 5.6 million tons of ore.

The “Damirli” copper deposit, which had been under Armenia’s occupation since 1993, was illegally exploited for approximately 10 years starting from May 13, 2013. During that period, out of the estimated 311,000 tons of extractable copper reserves, 218,000 tons, or 70 percent, were illegally extracted.

The initial exploitation period of the remaining reserves is planned for 2025–2030. During this period, the export of 85,000 tons of copper metal in concentrate form to the People’s Republic of China, valued at 1.6 billion manats, is envisaged. At the same time, an increase in copper reserves at the deposit is forecast in the coming years. According to preliminary geological exploration data, approximately 470,000 tons of additional copper reserves are estimated to be available. The extractable volume of these reserves will be clarified following a four-year geological exploration and research program.

At the initial stage, the complex has created permanent employment for 980 people, including 260 former internally displaced persons, among them citizens returning to the liberated territories. In the coming years, the number of permanent jobs is expected to increase to 1,250, with the majority filled by representatives of local communities.

Mining operations at the deposit are carried out by the operating company “Azerbaijan International Mining Company Limited” under an agreement signed in 2024 between “AzerGold” CJSC and the U.S.-based company “R.V. Investment Group Services” on the exploration, development, and production sharing of several ore deposits in Azerbaijan.

In accordance with the law approved by President Ilham Aliyev in 2024, the authority to represent the state under the production-sharing agreement has been delegated to “AzerGold” CJSC.

Comprehensive environmental protection measures have been implemented within the framework of the project. A baseline assessment and environmental monitoring were conducted, and an Environmental and Social Impact Assessment document was prepared based on the findings. Throughout the project period, measures including monitoring, laboratory analyses, afforestation works, and water recycling systems are being applied to reduce dust and noise emissions and to protect land and water resources. Upon completion of operations, technical and biological reclamation of the affected areas will also be ensured.

The implementation of this project is of great importance for ensuring the sustainable development of Azerbaijan’s non-oil sector, increasing export capacity, and guaranteeing the efficient and lawful use of natural resources in the liberated territories. At the same time, the attraction of private investment contributes to the modernisation and diversification of industry and the mining sector, boosts economic activity, and creates new jobs.

The Azerbaijani state has adopted significant decisions to support entrepreneurship in the liberated territories. Ensuring sustainable settlement, stimulating private initiative, attracting investment, and establishing a favourable business environment have been identified as key strategic objectives. Legal entities and individuals operating in the liberated territories are exempt from profit, income, property, land, and simplified taxes, as well as VAT and customs duties on imported equipment, technological installations, raw materials, and materials used for economic activities, for a period of 10 years starting from January 1, 2023.

President Ilham Aliyev pressed the symbolic button to initiate ore blasting.