Azerbaijan’s sole gold producer attracts financing to build plants

Business Materials 7 December 2009 16:17 (UTC +04:00)

Azerbaijan, Baku, Dec. 7 / corr Trend N.Ismayilova /

Anglo Asian Mining plc, the only active gold producer in Azerbaijan in the Gedabey region, is in talks with international investment funds to attract loans to construct a gold refining plant, Azerbaijani Ecology and Natural Resources Minister Huseyngulu Bagirov said.

"It is planned to launch construction in 2011," Bagirov said.

The facility will be built at new fields commissioned for gold production.

Thus far, $70 million has been invested in Gedabey, Anglo Asian Mining plc General Director Reza Veziri said.

If gold prices are maintained at the current level, the investments will be reimbursed after three years compared to earlier forecasts of seven to eight years, he said.

Exploration is being held at two gold mines. Investmentds in the first gold mine will make up approximately $35,000-$40,000. An analysis to define ore volumes in the mine is underway. Both fields will be connected via production by the end of 2010, Veziri said.

Anglo Asian Mining has the right to develop six fields in southwestern Azerbaijan - Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Suyutlu - on the basis of a 30-year agreement signed with the government in August 1997. Azerbaijan's equity participation in the agreement is 51 percent and the British company Anglo Asian Mining's - 49 percent.

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