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.

Salehi: There’s no problem for Iran to fulfill its nuclear obligations
Salehi: There’s no problem for Iran to fulfill its nuclear obligations
Iranian official: neither side fulfills their obligations in nuclear deal
Iranian official: neither side fulfills their obligations in nuclear deal
Iran Atomic Energy Organization to enrich stable isotopes in cooperation with Russia
Iran Atomic Energy Organization to enrich stable isotopes in cooperation with Russia
Loading Bars
Latest
Volodymyr Zelensky makes phone call to President Ilham Aliyev
Tamar Gabunia: No new decision has been made regarding school resumption
France's Macron says U.S. maximum pressure on Iran not working
Israeli PM, Bahraini crown prince discuss cooperation over phone
Audit services in Azerbaijan improving step by step
Mayor urges holidaymakers to 'stay permanently' amid population boom in Bodrum
Iran purchases additional wheat from farmers
Turkish president makes phone call to Azerbaijani president
President of Uzbekistan to deliver speech at 75th UN GA session
28 Kazakhstanis died from COVID-19 on Sep 14-20
Valentina Matviyenko: Azerbaijan has been and remains strategic partner for Russia
U.S. COVID-19 deaths top 200,000 -- Johns Hopkins University
MP: Azerbaijan to give worthy response to any provocations of Armenia
Azerbaijani finance ministry’s securities in great demand
Cargo transportation volume through "Middle Corridor" by late 2020 disclosed
China's exports of flat-rolled products of non-alloy steel to Georgia down
Georgian expert: Azerbaijan harmoniously combines three world religions
Geostat reveals volume of Russian export to Georgia
Speaker of Azerbaijani parliament meets chairperson of Federation Council of Russian Federal Assembly (PHOTO)
Georgia reveals volume of processed grapes by regions
Georgia reveals export statistics of major goods to Russia
Israeli city vice-mayor: Azerbaijan highly appreciates tolerance
Baku Port: New transport corridors of Caspian Sea increases Middle Corridor's role
Iranian Energy Exchange announces products to be on sale September 23
French Development Agency to fund construction of Uzbek hydropower plants
Review of Georgian exports to China
Red Cross representatives visit Dilgam Asgarov, Shahbaz Guliyev
Turkish president: Armenia - biggest obstacle to peace in South Caucasus
Kazakhstan to greatly increase level of automation of public services
Azerbaijan's AzInTelecom supports creation of new mobile app
Purchase of wheat in Iran's Sistan and Baluchestan Province completed
Uzbekistan permits flights for Abu Dhabi low-cost airline
Georgian company AgroKartli expect to increase apple crop
New ambassador of Netherlands to Azerbaijan arrives in Baku
Azerbaijan eyes to open two more DOST Centers till late 2020
Azerbaijan's ADY Express reveals cargo handling volumes via BTK railway
Georgian Railway sees increase in cargo transportation
Germany increases export volumes to Kazakhstan despite COVID-19
Industrial production to be increased in Uzbek regions
Uzbekistan boosts import of grain, legumes from Turkey
Azerbaijani First VP Mehriban Aliyeva attends opening of new kindergarten (PHOTO)
ADIF discloses amount of сompensations made to clients of closed banks
Kazakhstan Air Astana to resume direct flights to Russia
IRI's International Assessment Team Arrives Ahead of Georgia’s Parliamentary Elections
Iran’s NISOC can increase extraction coefficient
Kazakhstan's progress on cereals and legumes harvesting revealed as of Sept.22
Bahar Azadi gold coin price climbs
Azercosmos begins cooperation with ViewMedia
National Bank of Georgia to sell funds at foreign exchange auction
COVID-19 pandemic negatively affects Georgian Sarajishvili's company
Ceramic plant being prepared to launch in Turkmenistan’s Lebap region
Iran Customs Administration to facilitate release of imported goods
Azerbaijan to upgrade local hydrological networks
Construction of new apartments across Iran's towns going full speed
Int'l community must stop terror carried out by Armenia against Azerbaijan - Lebanese lawyer
Review of Georgian livestock export to Azerbaijan
More Kazakh citizens sent back home from Azerbaijan by sea
Azerbaijani First VP Mehriban Aliyeva attends opening of new building of Children’s Art School in Bulbula settlement (PHOTO)
Georgia plans to create low-cost airline
Volume of cotton fiber exports from Azerbaijan revealed
Turkmengas to purchase chemical products via tender
Iran discloses number of small mines restored
Uzbekistan considers joining research of vaccine for COVID-19
Iran increases amount of foreign currency assigned to importers
Siemens sees market value of energy spin-off above $20 billion
Produce in Georgia agency to begin accepting applications for its Micro and Small Business Support Program
Uzbekistan increases electric cars import
Iran’s Khouzestan Steel Company reaches new production level record
“Protect the Caspian Sea” with support of Bakcell and its partners (PHOTO)
Updates on Uzbekistan’s nuclear progress
EY Azerbaijan officially announces the start of the ‘EY Entrepreneur Of The Year™’ 2020-2021 competition
Subsidiary of KazMunayGas to buy diesel fuel via tender
Cement imports by US from Turkey slightly up amid COVID-19 pandemic
IMF: Economic growth in Uzbekistan to be positive due to growth in construction sector
Azerbaijan's CBA discloses amount of foreign currency bought by local banks
Russia lowers import of Turkish clothes
Geostat reveals volume of citrus fruits exported by Georgia to Azerbaijan
Romanian WEVO company implementing state projects in Azerbaijan (PHOTO)
WTL ready to implement new project in Turkmenistan
Review of Georgian corn export to Azerbaijan
Azerbaijan has right to liberate its lands by military means - Turkish general
Azerbaijan confirms 113 more COVID-19 recoveries
Value of exports from Iran's Maragheh County revealed
Georgian corn oil to enter local market
ROMGAZ moves towards becoming active player on natural gas distribution market
Azerbaijan's Energy Ministry reveals data on gas production, export
Iran reveals its COVID-19 data for September 22
Youth Union of New Azerbaijan Party issues appeal regarding Armenian provocation
PACE rapporteurs welcome decision to release Tofig Yagublu to house arrest
Oil rises on expectations demand can survive new lockdowns
Azerbaijan reveals oil production, export figures for ACG, Shah Deniz field
Electricity potential of Iran's thermal power plants up
Demand for Turkish electrical goods in China down
Turkmenistan, France's MEDEF considering priorities for infrastructure dev't in country
Greece plans to properly exploit fact of receiving natural gas from Azerbaijan
Iran inaugurates new healthcare centers
Kazakhstan's postal service operator to buy spares via tender
Documents on archiving pension files to be in e-format in Azerbaijan
Kazakhstan, France trade down twofold amid COVID-19
Iran’s Tehran Oil Refining Company to boost its capital
All news