In February 2024, Anglo Asian Mining (AAM), a British mining company operating in Azerbaijan, announced a significant copper discovery at the Kharhar site. This discovery, in line with Joint Ore Reserve Committee (JORC) standards, revealed an estimated copper mineralization zone of 24.9 million tons with an average copper content of 0.48%. Approximately 106,000 tons of copper have been identified from 22 million tons of ore, contributing to a total mineral reserve estimate of 119,000 tons. Anglo Asian Mining plans to commence copper production at the Kharhar site in 2026, aiming for an annual extraction rate of around 9,000 tons of copper over seven years, utilizing open-pit mining methods due to the site’s favorable terrain.
The original contract between Anglo Asian Mining and Azerbaijan, signed in 1997, encompassed the development of six sites, with Azerbaijan retaining a 51% share and Anglo Asian Mining holding 49%. A revised agreement in September 2021 expanded the contract to cover eight areas, granting the company rights to three additional blocks while relinquishing rights to one site.
Analysts anticipate significant revenue generation from the Kharhar site and other contract areas, highlighting the pivotal role of the mining industry in diversifying Azerbaijan’s economy away from oil dependency. The nation is actively aligning its mining sector with global standards, exploring innovative techniques and technologies, and seeking investments in the industry. Special focus is placed on opportunities in recently liberated territories, known to harbor significant mineral deposits.
Azerbaijan’s mineral resource base, as outlined in the State Programme for Geological Exploration and Efficient Utilization of Mineral Resources Base for 2020-2024, is undergoing thorough exploration and development. The liberated territories are particularly rich in gold, mercury, copper, and other minerals, positioning Azerbaijan as a significant player in the regional mineral resources market.
The Kalbajar District, for instance, boasts rich natural resources, including gold, silver, tellurium, selenium, and mercury. Similarly, the Lachin District is abundant in gold deposits. The liberated territories offer a variety of construction materials, further enhancing prospects for the construction industry.
Dashkasan, often referred to as the “Azerbaijani Urals,” houses the largest iron ore deposits in Azerbaijan. It also yields significant amounts of cobalt and aluminum ore, contributing to Azerbaijan’s industrial potential. Notably, the Dashkasan iron ore deposit has been a primary supplier of iron concentrate for the Rustavi metallurgical plant in Georgia.
In addition to iron ore, Dashkasan possesses substantial cobalt ore deposits and Europe’s largest alumina ore deposit. Other areas, such as Gadabay and Kalbajar, contain copper deposits, while polymetallic ores are mined at various locations.
Geological research continues to assess gold deposits in the Ortakand gold deposit and copper-porphyry deposit in Goydag, Julfa, among others. Strategic investments, modernization, and reforms in the mining industry are expected to enhance Azerbaijan’s utilization of its abundant natural resources, thereby strengthening the national economy and fostering integration into the global economic system.
