Azerbaijan's gold steps

Along with oil, copper, silver and iron ore, one of the main natural resources of Azerbaijan is gold. Although the country is not referred as to one of the world leaders for its gold reserves, there are a number of unique fields on its territory. In the south-west of the country, there are Gedabey, Gosh, Ordubad Group, Soyudlyu, Gizylbulag and Viadzhnali fields. Gold fields with potential reserves of about 100 tons: native gold field Chovdar in Dashkesan district, placer gold field Bashkend and Kurekchay in Nakhichivan Autonomous Republic.

And therefore, Azerbaijan is interested in world gold prices not less. Stepping around $900 per troy ounce in the beginning of the year, today the world market price of the precious metal confidently moves towards $1,000. Thus, in the period from 2000 to 2009 troy ounce of gold rose in price more than three times (from $300 to $1000).

For Azerbaijan - already the producer and exporter of the metal - the situation is extremely favorable. 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.

Experts estimate the amount of necessary investments in the development of placer gold fields approximately in such ratio: 1 ton of metal - $1 million in developed and well explored fields, then the investments will be repaid within one - two years.

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. Peter Hambro, founder and chairman of the Board of Peter Hambro Mining, which produces gold in Russia, also expressed his opinion, who predicts that the price of gold in 2009 will total $1,000 per ounce, and indicate that there are preconditions for growth to the level of $1,500 and even $2,000 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.

Iran's launches supercomputer
Iran's launches supercomputer
Azerbaijan enhancing information security of banks
Azerbaijan enhancing information security of banks
Azerbaijan demonstrates high growth rates in mobile infrastructure dev't - GSMA Association
Azerbaijan demonstrates high growth rates in mobile infrastructure dev't - GSMA Association
Loading Bars
Latest
Tourism Administration to participate in Dubai Tourism Exhibition
Iran to vaccinate 14m citizens against COVID-19 by end of June: Minister
Uzbekistan and Tajikistan discuss the development of trade and economic ties
Value of Turkish cars imported by China surges
Azerbaijan using combat aircraft units in military exercises (VIDEO)
Azerbaijani grabs gold at 2021 US Judo Senior National Championships (PHOTO)
Ankara Commission investigating crimes committed during Karabakh war holds first meeting (PHOTO)
Tank units of Azerbaijani Armed Forces perform tasks within scheduled exercises (VIDEO)
Azerbaijan’s Diamond Motors company names winner of tender for purchase of vehicles
Iran kicks off operation to develop Kong fishing port in Hormozgan Province
Political parties in Armenia urge to oust active PM and president
Iran's Energy Exchange announces products to be on sale on May 17
MP explains Iran's benefits of selling oil products instead of crude
Slovenian Port of Koper could serve as fastest way and entry point for Georgian goods entering EU
Rising commodity prices create preconditions for potential strengthening of currencies in CIS - expert
Azerbaijan names number of sold cars in 1Q2021
Azerbaijan discloses volume of non-oil products exported to Turkey
Azerbaijani Army's missile, artillery units heading for exercise areas (VIDEO)
Bahar Azadi gold coin price rising in Iran
National Iranian Drilling Company starts drilling operations on Siyah Makan oil field
French investment bank to assist in transformation of state-owned enterprises in Uzbekistan
Khazar consortium opens tender for purchase of office equipment in Turkmenistan
Udi people always feel attention of Azerbaijani president, first lady - head of Albanian-Udi Christian community
Azerbaijan's economy shows positive tendencies in March 2021, says WB
Travel to Saudi Arabia to resume Monday after year of restrictions
Royal Caribbean cancels new cruise line from Israel over unrest
Cargo movements in Iran’s Amirabad port shrink
Ranking of best-selling cars in global market for 1Q2021 announced
Bolivia receives another batch of Russia’s Sputnik V vaccine
Turkmen Communications opens tender for supply of equipment
Iran exporters seek stable foreign currency rate
Azerbaijan discloses date of next plenary parliamentary session
Personnel, military equipment of Azerbaijani Armed Forces sent to exercise area (PHOTO)
First Armenian president reveals reasons for country’s defeat in Karabakh war
Iran’s NIOC, POMC to sign contract on development of Farzad B gas field
Activities in Iran’s Noshahr port intensify
Greece talks latest trade data with Turkmenistan
Azerbaijan shares data on number of vaccinated citizens for May 16
Kazakhstan boosts trade with Poland
Azerbaijan confirms 472 more COVID-19 cases, 1,122 recoveries
Azerbaijani manat's exchange rate remains stable - WB
Kazakhstan unveils its trade structure with EAEU countries for 1Q2021
Greece exploring ways to further diversify bilateral trade with Turkmenistan
Iran's Ministry of ICT to provide free internet for presidential candidates
Iran lifts steel ingots export ban
Azerbaijan, Germany implementing joint agricultural projects
Iran declares amount of loans issued in Fars Province
Detailed look at Turkmenistan's development of agriculture sector (2020 - May 2021)
Tourism potential of Azerbaijan's liberated Shusha at int'l exhibition in Dubai (PHOTO)
Ports and Maritime Organization of Iran seeks tax exemption for Chabahar port
Azerbaijan discloses insurance fee for rice fields
Abu Dhabi shares at record high, shrugging off Israel-Palestine tension
Israel's import of Turkish chemicals spikes in value
SOCAR Ukraine temporarily suspends premium fuel sales
Britain to hold meeting to encourage global COVID vaccine take-up
Azerbaijani agrarian agency signs tender to attract judicial services
Purchasing of rapeseed from farmers in Iran continues
CPI up 0.3% in April, well below expectations
Uzbekneftegaz shares data on shipment of sulfur products
Russia’s COVID-19 spread rate surpasses 1 for eight days in a row
Disney World and other U.S. theme parks update mask rules
Troops of Azerbaijan's Nakhchivan garrison to launch new command-staff exercises
Share of non-performing loans in Georgia doubles
EU allocates financial aid for programs in support of Georgian private sector
Government Trading Corporation of Iran unveils volume of wheat purchased from farmers
Iran's free trade zones require private sector investments - President Rouhani
Volume of cargo loaded, unloaded in Iran’s Anzali port decreases
Azerbaijani parliamentary delegation leaves for visit to Italy
Bitcoin rises 5.6% to $49,337.72
Most temples belonging to Udi people are either in ruined or dilapidated condition. Therefore, we will restore them too - President Aliyev
Iran's launches supercomputer
Proxy advisor ISS recommends votes for Chevron CEO, directors
WB talks growth of lending to Azerbaijan's economy
Saudi Arabia's national airline to resume flights to Georgia
Uzbek commodity exchange notes decrease in prices for cotton seeds
Udi people have great historical heritage - President Aliyev
Georgian FM to pay official visit to Kyiv
Iran’s East Oil & Gas Production Company boosts gas extraction
Biggest share of Azerbaijan's GDP accounts for industry
Turkmenistan interested in expanding co-op with Russia’s Lipetsk region
Azerbaijani Armed Forces continue exercises, moving to operational areas (VIDEO)
Georgia sees increase in COVID-19 cases
Iran reveals COVID-19 data for May 16
Russian airline expanding route of flights in direction of Baku
Azerbaijan expected to approve another int'l document on migration issues
Iran government increases pensions
Retail trade indicators up in Kazakhstan
Physical volume of Kazakhstan’s GDP down in 1Q2021
Turkmenistan, Iran talk over increasing sea transportation in Caspian Sea
Ministry talks social benefits paid out to population in Azerbaijan since early 2021
GDP per capita increases in Azerbaijan
Azerbaijan discloses amount of trade surplus for 1Q2021
Azerbaijan creating industrial clusters to develop metallurgical industry
Facilities to be put into operation at Iran's Ilam Airport
Fitch Ratings shares forecast for Azerbaijan's 2021-2022 external public debt
Baku Higher Oil School hosts webinar ‘Women in Engineering: Challenges and Opportunities’ (PHOTO)
Batumi International Airport of Georgia receives first passenger flight after reconstruction
Azerbaijan's Azerishig to purchase metal structures
Russia reports 8,554 COVID-19 cases over the past day
New type power units at Uzbekistan’s Turakurgan TPP to increase electricity production
All news