The restoration of Azerbaijan's territorial integrity and sovereignty has opened new opportunities for the Azerbaijani mining companies AzerGold and Anglo Asian Mining plc to expand their activities.
Chovdar deposit Photo: www.starmining.az
Gold production in Azerbaijan has become a significant economic driver, underscoring the country's rich mineral resources. From January to October this year, gold output reached 2,167.1 kilograms, marking a 1.7 percent increase compared to the same period last year, according to the State Statistics Committee. This growth reflects the strategic development of Azerbaijan's mining sector and the immense potential of territories liberated from Armenian occupation, particularly the Eastern Zangezur economic region, The Caspian Post reports.
Kalbajar and Zangilan districts, within this region, stand out as hubs of precious metal deposits, with reserves that promise to bolster Azerbaijan’s position in global mining markets. Major international and domestic efforts, supported by government initiatives and foreign investments, are paving the way for efficient exploration and extraction, ensuring sustainable growth in the sector.
From January to October of the current year, 2,167.1 kg of gold was produced in Azerbaijan. According to the State Statistics Committee, gold production in the country increased by 1.7 percent compared to the corresponding period of the previous year.
As for the territories liberated from Armenian occupation, the Eastern Zangezur economic region is the richest in precious metals. This is especially true for the Kalbajar and Zangilan districts included in this region. According to recent data, gold reserves in Kalbajar amount to 143 tons, and in Zangilan to 6.5 tons.
The Kalbajar district can confidently be called the gold reserve repository of Azerbaijan. The most notable deposits in its territory include Soyudlu with reserves of 112.5 tons, Agyuzdag, and Tutkhun with reserves exceeding 13 tons. Geological exploration is already underway at the latter. Additionally, there are other promising sites in the area where studies have begun. In Zangilan, the main gold reserves are concentrated in the Vejnali deposit. One block of the deposit contains 2,169 tons of gold, while another holds 4,347 tons.
Foreign investors have been involved in the development of the Agyuzdag gold deposit in the Kalbajar district. In May 2021, the President of Azerbaijan issued a decree regulating certain issues related to the study, exploration, and exploitation of the Gashgachay, Elbeidash, and Agyuzdag ore deposits. Under this decree, the study, exploration, and development of the Gashgachay deposit were granted to Eti Bakır A.Ş. for 30 years, while work on the Elbeidash and Agyuzdag deposits was assigned to Artvin Maden A.Ş. Both companies are Turkish. It is worth noting that Eti Bakır is Turkey's leading mining and metallurgical company.
The Agyuzdag deposit, located in the southeastern part of the Kalbajar district, contains around 100 gold-bearing quartz and quartz-carbonate veins, five of which are confirmed to contain gold of industrial significance. The gold ores in this deposit are divided into two categories: pure gold and electrum, the latter being an alloy of gold with 35–40 percent silver. The copper-polymetallic Elbeidash deposit and the Gashgachay deposit are situated on the slopes of the Murovdag mountain range.
The British gold mining company Anglo Asian Mining plc plans to increase precious metal production in Azerbaijan by 2029, focusing more on copper extraction starting in 2026. By 2027, the company plans to open four new mines. It anticipates that copper production will contribute more to its revenue than gold extraction by 2026. Anglo Asian Mining currently operates six deposits in Azerbaijan. In August 1997, a PSA-type agreement was signed between the Azerbaijani government and the company.
This agreement included the Vejnali deposit in Zangilan. Despite these territories being under Armenian control at the time, such a farsighted decision was made. The fact that a major British company was involved demonstrated recognition of Zangilan's sovereignty and the ownership of its mineral wealth by Azerbaijan.
Unfortunately, during the Armenian occupation, companies from countries like the United Kingdom, France, Iran, the United States, Russia, Switzerland, Germany, and the Netherlands were involved in plundering Azerbaijan's mineral resources. Preliminary studies indicate that the most severe looting during the occupation occurred at the Soyudlu (Zod) deposit in Kalbajar, the Vejnali deposit in Zangilan, and the Gizilbulag deposit in Aghdara. The Kalbajar deposit, the largest in the Caucasus, was illegally exploited by GeoProMining Gold, a subsidiary of the Russian company GeoProMining Investment. The Soyudlu deposit, which partially extends into Armenian territory, consists of 23 gold-bearing veins, 17 of which are located in Kalbajar and only seven on the Armenian side. According to Azerbaijan's internationally recognized borders, 75 percent of this deposit lies on Azerbaijani territory.
The restoration of Azerbaijan's territorial integrity and sovereignty has opened new opportunities for the Azerbaijani mining companies AzerGold and Anglo Asian Mining plc to expand their activities.
In August 2024, AzerGold began the second phase of geological studies at the Tutkhun gold deposit in the Kalbajar district. These efforts are expanding as the demining process progresses. In July of this year, AzerGold joined the PSA agreement for the development of Azerbaijan's ore deposits, initially signed with the British gold mining company Anglo Asian Mining plc. Amendments to the agreement included replacing the Ministry of Ecology and Natural Resources with AzerGold as Azerbaijan’s representative in the PSA. Minor adjustments were also made regarding the use of facilities in the contract areas of Gizilbulag, Demirli, and Vejnali.
