Weekly economic review (Oct. 27-31)
Azerbaijan increases its gold reserves over 17%
The central banks of countries with developing economy, including Azerbaijan, Kazakhstan and Russia increased their gold reserves in September, according to a study by Dow Jones, citing data from the International Monetary Fund .
Azerbaijan increases its official gold reserves for the second month in a row, the report said. The Central bank of Azerbaijan increased its reserves by 17.4 percent, bringing them up to 868.321 ounces.
"The central banks of countries with developing economy increase their gold reserves over the past few years amid uncertain prospects of the reserve currencies such as the dollar and the euro," said the statement.
Russia, which is one of the largest holders of precious metals in the world, increased its reserves by 1.2 million ounces, according to the IMF. The Central Bank of Russia, which buys gold from the domestic gold producing industry, currently has reserves of 37 million ounces of gold.
Kazakhstan, adding 68,000 ounces to its reserves in September, brought them up to the amount of 5.9 million ounces.
"At the same time, such countries as the Czech Republic and Mexico reduced their reserves," said the statement.
The company Anglo Asian Mining PLC has the right to develop 6 fields in the south-west of Azerbaijan - "Gadabay", "Ordubad", "Gosha Bulag", "Gizil Bulag", "Vejnali" and "Soyutlu" based on the agreement of PSA type signed with Azerbaijani government August 1997.
The resource base of the company exceeds 36 metric tons of gold, 292 metric tons of silver and 94.000 metric tons of copper. The largest field developed by Anglo-Asian Mining is the Gadabay complex ore. The first gold and silver were mined there in May 2009 and the production of copper concentrate has been carried out since 2010.
The gold produced at the mines is sent for treatment in Switzerland. The ingots are brought to Azerbaijan and stored on the government's account.
The company produced 16,178 ounces of gold from the mines Gadabay and Gosha in the third quarter of 2014.
The company sold 13,797 ounces of gold at an average price of $1,281 per ounce during the reporting period.
The total gold sales amounted to 37,343 ounces at an average price of $1,291 per ounce for the first 9 months of 2014.