On March 30, the British gold mining company “Anglo-Asian Mining plc” (AAM) announced a strategic plan for the growth of gold and copper production at deposits in Azerbaijan for the period 2023-28 (https://polaris.brighterir.com/public/anglo_asian_mining/news/rns_widget/story/w0386pw ).
As follows from the information posted on the AAM website, the production of precious metals in 2023 is projected in the amount of 50-54.000 ounces in gold equivalent (CU), in 2024-2025 – 70-75.000 ounces, in 2026-2027 – 115-125.000 ounces of CU., in 2028, it will reach 175.000 ounces of cu.
Thus, over the period 2023-2028, the production of precious metals will grow by 3.2-3.5 times.
“The growth in production during this period will be ensured by the successive opening of four new mines in Azerbaijan. Copper as the most important metal for energy transition to zero emissions, is expected to become the company’s main product from 2026. The strategy assumes that the contribution of copper production to the company’s revenues in 2026 will exceed the contribution from gold production,” the plan published on the company’s website says.
In addition, AAM expects that the total cost of copper production will more than double in 2023-2027 and may triple by 2029.
From the cite material it follows that the company’s strategy consists of two stages.
At the first stage (“transition period”), production at the currently operating Gedabek and Gadir mines will be managed in such a way as to maximize their productivity as they approach the end of their operational life. At the same time, in 2023-2026, the company plans to put into operation three new mines – Zafar, Gilar, Kharkhar. It is planned to extract copper, gold and zinc at the Zafar deposit, Gilar – copper and gold at the Gilar, and copper at the Harhar.
Stage II (“Transformation”) includes the development of the Garadag mine and the start of copper mining.
According to AAM, Garadag has the potential to produce more than 300.000 tons of copper. The company predicts that production at Garadag will begin in 2028.
AAM informs that on March 31, at 13:00 Baku time, it will hold an online presentation of the Strategy for Investors.
It is to remind that the company has been mining precious metals in the country since 2009 on the basis of the PSA contract signed in August 1997 (51% – the government, Anglo- Asian Mining PLC – 49%).
The extraction of the first gold began from the Gedabek deposit, in September 2013 the company started developing the contract area of Gosha, in 2023 it is planned to start production from the Veijnali, Gilar and Zafar fields.
In September 2021, a new contract was signed with the government, under which the company received three new contract blocks at its disposal and relinquished the rights to develop one (in the Kalbajar region).
In 2022, AAM produced 43,114 ounces of gold in Azerbaijan (a decline of 11.4% as compared to 2021), silver – 182,046 (an increase of 17.8%), copper – 2,516.000 tons (a decline of 5%).
In 2022, 34,918 ounces of gold bullion were sold on world markets (a decline of 11.7%) at an average price of $1,783 per ounce.
As for 2023, the Anglo Asian Mining predicts gold production in the amount of 30-32.000 ounces
Source: Turan News Agency