Azerbaijan’s golden prospects

Azerbaijan’s golden prospects

Azerbaijan, Baku, Jan 13 /Trend/

Leyla Abdullayeva, Trend Analytical Center Expert
The cost of gold on the world markets increases again. Gold futures prices on the basis of trading on the Comex New York Stock Exchange increased by 0.5 percent, up to $1.647.7 per troy ounce. According to the traders, large volumes of technical purchase and concern about the financial situation in the eurozone are the main causes of price increase.

Although Azerbaijan is not such major regional gold producer, as China, Russia and Uzbekistan, the increasing world prices on this precious metal and increased international instability turned gold into a very attractive asset. At average gold prices, many small and medium fields in Azerbaijan may be interesting for foreign investors who are able to ensure the necessary technologies and capital. And those investors who are involved in the Azerbaijani gold fields at the moment, confidently increase gold production and strengthen its position in the export market.

According to the Azerbaijani State Statistics Committee, the country produced 2,759 kg of precious metals in January-November 2011 (1,637 kg of gold and 1,122 kg of silver). Gold in Azerbaijan is extracted only in Gadabay field, the west of Azerbaijan. The foreign company Anglo Asian Mining PLC began gold production in Gadabay in late May 2009.
Gold reserves at the Azerbaijani Gadabay field exceeded the expected results. It was planned to receive 1.8 grams of gold from every ton of ore at "Gadabay". It became known that this figure is more than 2 grams. That is, it becomes clear during the drilling operations that the gold-bearing resources in the field and the saturation of ore exceed the forecasts.

Moreover, sometimes the ore saturation exceeds 3 grams. This turns the industrial development of the field into cost-effective. Moreover, one can get about 16 grams of silver and 0.29 percent copper from each ton.

The exploitation of the "Gosha" deposit consisting of 13 zones is expected to be launched. The preliminary gold reserves at "Gosha" field are projected at 300,000 ounces. But there are plans to build a plant, to produce and to supply 20,000 ounces of gold to the market per year. Anglo Asian Mining Plc company, gold producer in Azerbaijan, submitted the development and production program at the Gosha field to the government in late 2011. The first batch of gold is expected to be obtained in the first half of 2013.

The exploration work is also underway on the Ordubad field. The new equipment is bought from Canada. A drilling rig is capable of conducting underground drilling.

Amid the depletion of natural gold resources in the leading gold-producing countries, the development of the Azerbaijani gold mining industry promotes the emergence of one of the most strategically important sectors of the country. Today, when the distinct upward tendencies in gold prices and the popularity of this precious metal strengthened on the world market, the revival of gold mining involves the need for its development in the market terms.

Considering the dynamics of the gold price for the last 11 years, we will see that the price on gold increased from $281 to $1,700 from 2000 to 2011, that is, the growth of the asset cost was more than 600 percent. No asset gave such price appreciation.

Consequently, the Azerbaijani gold mining industry, as a young sector of the economy, has a promising future.

Subscribe to Trend in Google News! Subscribe
Israel's Partner Communications swings to Q3 profit
Israel's Partner Communications swings to Q3 profit
Bank of Israel accelerating preparations for digital currency
Bank of Israel accelerating preparations for digital currency
Israel closes borders due to spread of Omicron variant - health ministry
Israel closes borders due to spread of Omicron variant - health ministry
Loading Bars
Global coalition seizes 145.3 tonnes of cocaine - Colombia's navy
Snowfalls, heavy rains and strong winds hit Italy and Spain
Eight Iraqi officers probing attack on PM arrested on charges of negligence
Biden urges calm over Omicron COVID-19 variant
Germany's SPD will announce its ministers next week
Messi wins The 2021 Ballon d'Or
Georgia’s electricity exports double
Wild winds in Turkey claim lives, close Bosphorus strait
Azerbaijan represented at III Pacific Alliance International Cooperation Forum
Iran top nuclear negotiator, Mora meet ahead of Vienna talks
Uzbekistan, Kyrgyzstan discuss creation of trade-logistics complexes in border areas
Twitter CEO Jack Dorsey to step down
Georgian delegation leaves for Brussels
Azerbaijani, Saudi Arabian foreign ministries hold consultations
Famous artist receives Azerbaijani citizenship
Azerbaijan holds expanded meeting of Operational Headquarters for Combating COVID-19 (PHOTO)
Azerbaijan approves COVID-19 certificates
Azerbaijan discloses state budget revenues through State Customs Committee
Volume of loans issued in Azerbaijan’s real estate sector increases
Price indexes of industrial, construction sectors at Uzbek stock exchange fall
Kazakhstan to build hybrid solar power station
Azerbaijan's foreign trade turnover increases in 10M2021
Some CSTO members’ congratulations to Azerbaijan show Armenia's insignificance in CSTO - analyst
Interest rates on consumer loans in Georgia increase
Uzbekistan starts construction of new branch of Gazli-Kagan gas pipeline
Kazakhstan eyes increasing container shipments
SOCAR projects increase in local manufacturing of fuel products from 2023
IRENEX shares data on sales of Bandar Imam Petrochemical Company
Turkmen Ministry of Textile extends tender for modernization of cotton-spinning factory
Snam to increase spending on energy transition activities
Iran eyes decrease in passenger transportation via Bandar Abbas International Airport
Turkmenistan becomes Uzbekistan’s second largest gasoline supplier
Azerbaijan adopts new state standard on farming activities
Azerbaijan Deposit Insurance Fund reveals number of loans of liquidated banks
Uzbek Statistics Committee shares data on import of cement
Azerbaijan rapidly continues construction of Barda-Aghdam highway (PHOTO)
Iran discloses details of its daily gasoline production
Snam reveals investment plans by 2024
Snam expects to achieve sustainable growth of main indicators in 2021-2025
Snam raises methane emissions reduction target
Azerbaijan’s economy minister talks projects submitted for country's industrial parks
New deputy ministers of Youth and Sports of Azerbaijan appointed
Georgia’s Partnership Fund to be renovated – minister
Iran resuming exports to Tajikistan through Turkmenistan's routes
SOCAR returns part of loans through its activities in Turkey
Issue of building railway, highway along Araz River resolved – Turkish President
Ankara is ready to take steps to normalize ties with Israel – Turkish President
Azerbaijan confirms 857 more COVID-19 cases, 1,091 recoveries
Iran’s Bahar Azadi gold coin price skyrockets
Azerbaijan shares data on number of vaccinated citizens
Number of Turkish citizens seeking jobs in Uzbekistan greatly increases
EV maker Phoenix Motors files for U.S. IPO
Turkmenistan pays special attention to boosting transport, transit communications - president
Kazakhstan's KMG Engineering to buy batteries via tender
Gulf bourses regain some ground after Omicron battering
Iran shares data on generation of Shahid Rajaee TPP
ADB to finance export projects of Turkmen SMEs
Data on new Omicron coronavirus strain analyzed by crisis center - Kremlin
Georgia sees increase in persimmon exports
Kazakhstan’s oil-producing company opens tender for equipment repair services
Portugal finds 13 cases of Omicron variant at Lisbon soccer club
Turkmenistan ready to provide its port facilities in Caspian Sea for ECO countries
Cargo transportation via Iran’s Ahvaz International Airport climbs
Israel's Partner Communications swings to Q3 profit
Foreign assets of Azerbaijan’s commercial banks increase in 10M2021
Civilian injured in mine explosion in Azerbaijan's Jabrayil district
Georgia expects slower monetary policy normalization pace – TBC Capital
SOCAR to optimize fuel production at Baku refinery based on international standards
Iran reveals COVID-19 data for November 29
Turkey reveals volume of cargo transshipped via its local ports in 10M2021
SOCAR expects progress on Heydar Aliyev Baku Oil Refinery reconstruction project by late 2021
Mortar and artillery units of Azerbaijani army hold live-fire tactical exercises (VIDEO)
Kazakhstan-Turkmenistan bilateral trade up for 9M2021
Weekly review of Azerbaijani oil market
Iran membership in ECO expands regional economic ties
Azerbaijani Economy Minister talks land allocated for Aghdam Industrial Park
Uzbek Central Bank notes growth in volume of non-performing loans
Russia detects 33,860 daily COVID-19 cases
Georgia’s tangerine exports double
Iran looks to use new methods to export crude oil, gas condensate
SOCAR Turkey announces time of making final decision on Merkury project
Price of apartments in Iran’s Tehran rising
Kazakhstan reports increase in cargo transport by air
National Bank of Georgia shares data on loans interest growth
Azerbaijan records growth in prices for hotel services - Hotels & Restaurants Association
Georgia’s GDP shows unprecedented growth – PM
Azerbaijan’s volume of loans issued to industry, manufacturing sector decreases
OPEC+ countries expected to adjust future plans at upcoming meeting - analyst
Azerbaijan’s SMBDA and "ASAN Radio" launch radio programs for entrepreneurs
Russia can fully increase oil production under OPEC+ deal - Deputy Prime Minister
Iran sees increase in exports via customs of Sistan & Baluchestan Province
Turkey discloses number of ships received at local ports in October 2021
Turkey discloses number of cars transshipped via local ports in 10M2021
Kazakhstan records decline in prices of several main food products
President Ilham Aliyev signs order to recall Consul General of Azerbaijan in Russia’s Yekaterinburg
Number of Turkish citizens seeking job in Turkmenistan grows for 10M2021
How will gas swap from Turkmenistan to Azerbaijan via Iran benefit participants?
Trilateral contract to help strengthen Iran's relations with neighbors – MP
COVID-19 vaccination certificates in Azerbaijan have no expiration date, TABIB says
Uzbekistan takes over chairmanship of organization of ECO summit
All news