Azerbaijan ready to sign long-term contracts for copper sale

Business Materials 24 January 2012 16:56 (UTC +04:00)

Azerbaijan, Baku, Jan. 24 / Trend N.Ismailova /

In 2011, Anglo Asian Mining Plc, gold producer in Azerbaijan has earned $5 million from sale of copper concentrate produced at the gold and copper mine in Gadabay, west Azerbaijan, the company's statement reported on Monday.

At the end of 2011, the reserves of copper concentrate contained approximately 562 tons of copper, 118,000 ounces of silver and 171 ounces of gold. The company is discussing with potential buyers to sign long-term contracts.

The production of copper concentrate in 2011 has improved significantly and exceeded the forecast, set at 525 tons. About 611 tons of copper, 134,240 ounces of silver and 200 ounces of gold (against 182.5 tons of copper, 46,940 ounces of silver and 832 ounces of gold in 2010) were produced from copper concentrate last year. About 170 tons of copper, 38,392 ounces of silver and 62 ounces of gold were produced in the fourth quarter of 2011.

Anglo Asian Mining Plc 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. It is expected to produce about 400 tons of gold, 2,500 tons of silver and 1.5 million tons of copper on the fields under the contract.

The gold was cleared in Switzerland after the extraction. The bars are imported into Azerbaijan and stored on account of the Government.

The first gold and silver were extracted in the Gadabay mine on May 2009. It is planned to extract more than 300 million ounces of gold from the field to 2015.