Azerbaijani gold producer signs sales agreement with Swiss mining group

Photo: Azerbaijani gold producer signs sales agreement with Swiss mining group 
 / Economy news

Baku, Azerbaijan, May 6
By Aygun Badalova -Trend:

Anglo-Asian Mining PLC (AAM), gold producer in Azerbaijan, signed a three-year contract with Industrial Minerals SA ('Industrial Minerals'), a Geneva based integrated trading, mining and logistics group.

Industrial Minerals SA will become an exclusive partner of Anglo-Asian Mining PLC, for sales of the company's copper concentrate product from the Gedabek gold, copper, silver mine in western Azerbaijan, said the message of AAM on May 6.

Under the terms of the sales agreement Industrial Minerals will purchase both dry and wet copper concentrate.

AAM has 75 tonnes of dry copper concentrate and 550 tonnes of wet copper concentrate stockpiles ready to sell, and it is expected that Gedabek will exceed its target to produce 595 tonnes of copper for FY (Fiscal Year) 2014.

Anglo-Asian CEO Reza Vaziri said that this exclusive sales contract with Industrial Mineral will increase the profitability of AAM.

"With record copper sales from Gedabek totalling $6.6 million in 2013, we are in a position to continue this trend in 2014 and I look forward to updating shareholders on the copper production and sales in the coming months, as well as on gold production from Gedabek," he said.

Developments at the company's second gold project Gosha, which has started its first-phase gold production in Azerbaijan, will also materialize, according to Vaziri.

"We now have two production projects in the country, which together sees Anglo-Asian's gold forecast for FY 2014 between 62,000 oz Au and 67,000 oz Au," he said.

Anglo-Asian Mining PLC is a gold producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan.

Anglo Asian Mining has the right of exploration and production of mineral resources in an area of about 2000 square kilometres consisting of three contract areas of Gosh, Gedabek and Ordubad under the terms of the Production Sharing Agreement (PSA) with the government of Azerbaijan.

The resource base of the company exceeds 36 tonnes of gold, 292 tonnes of silver and 94.000 tonnes of copper. The largest field developed by Anglo-Asian Mining, is the Gedabek Complex Mine. The first gold and silver were mined there in May 2009 and the production of copper concentrate has been going on since 2010.

Company's gold production for 2013 ended on 31 December 2013, totalling 52,068 oz.

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