Baku, Azerbaijan, Nov. 30
By Anvar Mammadov – Trend:
Azerbaijan’s Gadabay mine site’s recent connection to the country’s national power grid will allow the company saving about $2.3 million per year, said Anglo Asian Mining PLC, producer of gold in Azerbaijan, in a report posted on its website Nov. 30.
Earlier, the AAM said that once the substation becomes operational, the company will be able to reduce its annual expenditures by $1.8-2 million.
“Gadabay mine site is now connected to the Azerbaijan national power grid. This will result in the Gadabay mine site using cleaner and cheaper power which up to now has been provided by diesel generators,” said the report.
Further, the report said the company will reduce the volume of consumed diesel fuel by 11 million liters per year.
According to the AAM, total cost of the construction of the substation and power cables was $2.1 million. Therefore, the capital cost of the installation will be recovered in around one year.
“Electricity is currently being purchased from the grid at a cost of $0.035 per kw/h,” said the report. “The company's nine existing diesel generators won’t be used but will be kept as a standby power supply.”
Average cost of one ounce of gold sold by the AAM was $1,332 in the 3Q2016.
The company produced 49,874 ounces of gold, 1,363 tons of copper and 114,915 ounces of silver in January-September 2016.
Anglo Asian Mining PLC is a gold, copper and silver producer with a broad portfolio of production and exploration assets in Azerbaijan.
Based on the production sharing agreement signed with Azerbaijani government in August 1997, Anglo Asian Mining PLC has the right to develop six fields in south-west of Azerbaijan: Gadabay, Ordubad, Gosha Bulag, Gizil Bulag, Vejnali and Soyutlu.
The gold produced at the fields is sent to Switzerland for purification. The ingots are delivered to Azerbaijan and are stored in the government’s account.