Azerbaijani gold producer halves loan debt

Business Materials 23 January 2012 21:37 (UTC +04:00)

Azerbaijan, Baku, Jan.23 / Trend N.Ismayilova /

Anglo Asian Mining Plc, gold producer in Azerbaijan, paid $2 million to its major creditor, International Bank of Azerbaijan (IBA), in the fourth quarter of 2011, the company said on Monday.

Credit debt of the company to the IBA amounted to $13 million as of late 2011. The company also made its latest payment ($0.8 million) to the CEO of Anglo Asian Reza Vaziri. Thus, the company fully repaid loan worth $1 million.

The total debt of the company amounted to $13 million as of Dec.31, 2011 compared to $30.6 million as of Dec.31, 2010.

During the first quarter of 2011 the company paid $8.6 million to the IBA, $4 million- in the second quarter and $2 million- in the third quarter.

Anglo Asian Mining Plc is the only gold producer in Azerbaijan. The company owns the rights to develop six fields in south-west Azerbaijan at Gedabey, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu. The concession is based on PSA agreements signed with the Azerbaijani government in August 1997. According to the contract, production is planned to reach about 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper at the fields.

Anglo-Asian Mining plc produced over 57,000 oz of gold (Au), extracted in Gedabey field.

The gold produced in these fields is sent for purification to Switzerland. Bullions are then delivered to Azerbaijan and kept on the government's account.

First gold and silver were extracted in Gedabey field in May, 2009. Over 300,000 oz of gold are planned to be produced in this field till 2015.