Exploitation of large gold deposit to bring $176M to economy

Azerbaijan’s economy is expected to receive revenues of about 300 million manats ($176 million) as a result of the sale of an additional 129,000 ounces of gold and 202,000 ounces of silver, which will be mined until 2021 during the operation of the ground ore layer at the Chovdar field, Zakir Ibrahimov, chairman of AzerGold’s Management Board, said on July 10.

He made the remarks at a meeting of the Cabinet of Ministers devoted to the results of socio-economic development in the first half of 2018 and the upcoming tasks.

“The document on the feasibility study for the operation of the ground ore layer at the Chovdar field to be started in 2021 is prepared by an international consulting company,” Ibrahimov noted, adding that according to preliminary calculations, it is planned to receive an income of more than 400 million manats ($235 million) within the sixyear operation of the project.

He also said that AzerGold, along with the sale of valuables on international markets, also makes efforts to sell Azerbaijani gold and silver in local markets and reduce dependence on exports.

“From this year, SOFAZ will buy gold mined by AzerGold, and the gold reserve fund of the country will be formed of Azerbaijani gold,” Ibrahimov noted.

Azerbaijan’s AzerGold CJSC, which started activity in July 2016, is engaged in studying, research, investigation, management of deposits of precious and nonferrous metals, their production, processing and sale, and also application of new technologies in this sphere, improvement of material and technical base and implementation of other works related to development of this area.

Azerbaijan, a country with reach mineral resources, started industrial production of gold in July 2009. About 900 fields were registered in Azerbaijan's state and territorial balance of reserves of mineral resources. The Ministry for Ecology and Natural Recourses estimates that the country is able to produce about 10-15 tons of gold per year.

AzerGold CJSC was established on February 11, 2015. The company uses new technologies in exploration, development and management of non-ferrous metal deposits, modernization of the material and technical sources and their effective use, as well as other work for developing this sphere.