Azerbaijan as gold producers and exporter

Azerbaijan as gold producers and exporter

Azerbaijan, Baku, September 29 / Trend /

Leyla Abdullayeva, expert of Trend analytical center

Increasing of world prices for gold, which early this year reached nearly $900 per troy ounce, and from 2000 to 2009 increased more than three times (from $300 to $1000), is extremely beneficial for Azerbaijan, already as manufacturer and exporter of this metal.

Because together with the American company R.V.Investment Group Services LTD, which develops Gadabay gold field in the west of the country, this year Azerbaijan already began to export gold to world markets through the European exchanges. The first consignment of gold worth $977 per ounce was sent to world markets through the European exchanges. Exports began with a volume of 1200 - 2000 ounce of gold under the brand of Ayrim, and by the end of 2009 can reach 65,000 ounces (over 2.0 tons). In 2010, the volume will reach 75,000 ounces, a few years later - 100 000.

Reserves of the industrial fields in Azerbaijan are mainly in the form of alluvial gold. It is important to note that the exploitation of alluvial fields is quite perspective in the economic and technological terms. Development of placer gold has several advantages over the development of ore, carried out on large fields: it is possible to get high-grade gold, while avoiding the costs of fragmentation, enrichment and development of technological processes. In addition, electricity consumption is saved. Also production of placer gold is more secure because of the lack of blasting operations.

Therefore, in the case of a successful combination of circumstances and considering the annual rise in prices of yellow metal, Azerbaijan can to earn good money even if the prices fall. Once again, experts predict that a rise in price of gold is expected in the end of 2009. Gold commentators try to outdo each other gradually in the higher gold price forecasts, which predict a rise to $ 2000 per ounce, and some even suggest that the price in the Dow (Dow Jones index) will come to $3000 per ounce.

Today, in Azerbaijan the volume of total reserves of gold is 500 tons. If to compare Azerbaijan's gold reserves with the global giant gold exporting countries, for instance with Republic of South Africa, where the annual export amounts to some 500 million tons, Azerbaijan's reserves in this respect is rather less. Undoubtedly Azerbaijan will face with the competition of many developing countries in this regard. In today's market there are large producers of gold as Republic of South Africa, USA, Australia, Canada, China and Indonesia, which are steadily increasing production of gold and soon may catch up with major producers - Peru and Uzbekistan.

In this situation, the government directly or indirectly should support and encourage the development of this industry. For example, the situation can be mitigated by lowering the level of duty on the export of gold, which is now 15 percent in Azerbaijan. In Russia, the five-percent export duty on this precious metal, for example, was canceled. With this step, the Government of Azerbaijan would create a equal conditions for exporters. Reducing tariffs will have a positive impact on the gold market in general, because it will help attract the industry of cheap foreign financing, which is especially important for the development of ore fields.

Do you have feedback? Contact our journalist at: [email protected]

Regional Gender Expert Group to be set up for CAREC Gender Strategy implementation
Regional Gender Expert Group to be set up for CAREC Gender Strategy implementation
OIC member countries boost imports of Turkish-made products
OIC member countries boost imports of Turkish-made products
Tourism ecosystem for high-spending tourists to be created in CAREC countries
Tourism ecosystem for high-spending tourists to be created in CAREC countries
Loading Bars
Latest
All sanctions against Iran should be lifted unconditionally, Russia says
Turkmenistan losing popularity among Turkish job seekers
India's new coronavirus infections hit record of 184,372
Azerbaijan's Xalq Sigorta insurance company talks 2020 net profits
Oil maintains upward momentum but virus concerns cap gains
Britain to withdraw nearly all its troops from Afghanistan
Turkey's COVID-19 cases hit new peak at 59,000
Tehran to resume flights to London next month: Official
Cargo transportation via railways up in Kazakhstan
France to allow Georgian citizens find legal employment in country by end of 2021
Brazil reports 3,808 single-day deaths from COVID-19
Biden invited to address U.S. Congress on April 28
South Africa suspends J&J vaccine rollout
Azerbaijan to become regional hub for Industry 4.0 development - US IDC
U.S. administers 192.3 million doses of COVID-19 vaccines: CDC
France suspends all flights with Brazil due to virus variant
UK records another 2,472 coronavirus cases, 23 deaths
Boeing reports first quarter deliveries
Biden set to withdraw U.S. troops from Afghanistan by Sept. 11
Number of COVID-2019 cases across globe up by over 567,000 in past day — WHO
Iranian nuclear deal meeting in Vienna rescheduled to April 15
Kazakhstan expects positive dynamics in oil industry
Erdogan reveals stricter COVID-19 measures in Turkey during Ramadan
Iran's annual iron ore concentrate output nears 50mn tons
Deputy Finance Minister: Georgia ranks first in Europe with economic growth rate according to IMF
Southern Gas Corridor increases liquidity in European gas markets
Uzbekistan-India trade grows to record high in 2020
Azerbaijan plans to organize personal account system for auditors
China's 2M2021 import of Azerbaijani products surges in value
Exchange of all data necessary to conduct effective demining is required - OSCE MG
Baku to host international gymnastics competitions again
German gov't approves uniform nationwide COVID-19 response measures
Russia's daily COVID-19 cases record lowest in months
Iran to start 60% enrichment tonight: Nuclear spokesman
Israel to allow vaccinated tourists in starting late May
Biden confirms invitation to Putin to take part in climate summit
Presidents of Azerbaijan, Belarus have informal meeting
IMF unveils forecast on Azerbaijan's oil export for 2021-2022
Azerbaijani FM, Romanian ambassador stress high level of development of bilateral political relations (PHOTO)
Special equipment of Belarus assembled in Azerbaijan may be exported to Turkey
Azerbaijan's Foreign Ministry responds to Armenia's statement on War Trophy Park
President of Belarus pays working visit to Azerbaijan (PHOTO)
Moscow, Tehran attach great importance to North-South Corridor – Russian FM
Azerbaijani president gives weighty answer to Armenia’s disinformation campaign - Official (VIDEO)
Belarus reveals plans for oil purchases from Azerbaijan
Kazakhstan’s FlyArystan launching direct flights to Georgia
Iran's Energy Exchange announces products to be on sale on April 14
International Bank of Azerbaijan opens tender to buy printed materials
Azerbaijan's Aghdam needs to be fully rebuilt - German historian (VIDEO)
Azerbaijan's PM meets with BP's regional president
Ukraine may take part in restoration of Azerbaijan's liberated lands
Azerbaijani Finance Ministry places short-term bonds on auction
Iron ore concentrate production by major Iranian companies increases
President Ilham Aliyev: Pakistan was among countries that openly supported Azerbaijan from first days of confrontation
Iran’s Bahar Azadi gold coin price again falling
Sudan due to send first delegation to Israel next week
Liabilities of Bank Melli Iran’s Baku branch increase
Armenia obligated under int'l law to provide mine maps to Azerbaijan - Matthew Bryza
Footage from Azerbaijani Jabrayil's Sadi village (VIDEO)
Azerbaijan, Ukraine discuss full resumption of mutual flights
Oil exports via Barents Sea in Lukoil system increased
Hydrometeorology in Azerbaijan needs young experts for technologies - ministry
Azerbaijan shares latest data on mine clearance work carried out on liberated lands
Co-op between Iran, Russia to be effective in activating nuclear deal – Rouhani
2021 demand for OPEC crude to be higher than in 2020
Assets of Iranian Bank Melli's branch in Azerbaijan increase
On Independence Day eve Israel's population over 9.3m
Iran still waiting for S.Korea to provide solution, release its blocked assets
Azerbaijan issues data on number of COVID-19 vaccinated citizens
Azerbaijan confirms 2,457 more COVID-19 cases, 2,002 recoveries
OPEC revises up forecasts for Azerbaijan’s 2021 liquids supply
Rosatom can take part in developing green energy in Azerbaijan - expert
Repairing of last well in Iran's Naft Shahr field launched
Iran in favor of strengthening relations with Russia – President Rouhani
Azerbaijan Railways builds co-op on transiting additional goods
IMF talks forecast of money supply growth in Azerbaijan for 2021-2022
European Hydrogen Backbone’s updated cost revealed
IMF predicts growth for Azerbaijan's oil, non-oil GDP
Cargo movements in Iran’s Qeshm port down
Azerbaijan expects tourism sector to recover by summer
Plan on budget revenues surpassed in Kazakhstan
Scotland to ease some COVID-19 restrictions early
Around 70% of European infrastructure to start transporting hydrogen
U.S. will base 500 additional troops in Germany
Russia documents 8,173 coronavirus cases in past day, lowest figure since September 28
Kazakhstan names value of payments of compulsory vehicle insurance
Iran's mobile phone imports increase
Azerbaijani president signs order on hosting European Football Championship matches in Baku
Kazakhstan drafts pricing rules for exported crude oil, gas condensate
Retail trade indicators decrease in Kazakhstan
Kazakh Gas Refinery opens tender to buy spares
Kazakhstan records decrease in oil output
Belarusian IT company keen to expand its activities in Azerbaijan's transport sector
Iran’s Jam Petrochemical Company announces its production plan
Uzbekistan building modern wastewater treatment facility at Uzbekneftegaz GTL plant
Kazakh Gas Refinery opens tender to buy engines
Russian, Azerbaijani military discuss Iskander-M missile debris in Karabakh region - Russian official
Greece can take slightly more than 1 mcm/d via TAP
President Ilham Aliyev: Liberation of territories will be additional opportunities
President Ilham Aliyev: Armenians did it deliberately in order to erase legacy of Azerbaijani culture in order to erase these territories from our memories
All news