Iron Ore Ambitions: AzerGold's Grand Project Unveiled

AzerGold
AzerGoldImage Source: AzerGold

Synopsis:

Dashkesan Demir Filiz, a subsidiary of AzerGold, reveals plans to complete three phases of its iron ore project by mid-2027, including a beneficiation plant, pelletizing plant, and a hot-briquetted iron plant. Estimated at $1 billion, the project aims to produce 3 million-3.2 million metric tons of ore annually. Despite ongoing investor searches, AzerGold remains on schedule for design completion this year, emphasizing a commitment to the Dashkesan field's development.

Article:

In a strategic move towards bolstering its iron ore capabilities, Dashkesan Demir Filiz (DDF), a subsidiary of AzerGold, unveils an ambitious plan to execute all three phases of its iron ore project by mid-2027. The project, located at the Dashkesan iron ore field, involves the construction of a beneficiation plant, a pelletizing plant, and a hot-briquetted iron (HBI) plant, with a targeted Fe content of 67%, culminating in a premium HBI with 95% Fe content.

Jeyhun Aliyev, DDF Chief, shared insights during a press conference, highlighting that all three plants will be constructed simultaneously. The construction timeline is intricately tied to investor pursuits, yet the goal is to finalize construction and commence operations by the middle of 2027. Aliyev reassured that project development progresses seamlessly, with design completion for all three plants expected within the year.

Reports indicate an estimated project cost of $1 billion, equivalent to 1.7 billion manat at the current exchange rate. AzerGold, the driving force behind this initiative, envisions an annual ore production of 3 million-3.2 million metric tons. This output is projected to yield 1.3 million metric tons of concentrate and pellets, ultimately producing 900,000 metric tons of high-quality HBI for commercialization.

The Dashkesan iron ore field, comprising six deposits, has been the focus of AzerGold's developmental endeavors since President Ilham Aliyev's order in August 2020. The planned iron ore project aligns with AzerGold's broader mission to explore, develop, and operate gold and iron ore deposits across Azerbaijan.

AzerGold, established in 2015, has been instrumental in advancing Azerbaijan's position in gold mining. The company not only mines and exports gold but also actively participates in the development of iron ore fields. Zakir Ibrahimov, AzerGold's CEO, highlighted the company's commitment, noting investments of 157 million manat (approximately $92.4 million) in ore projects in 2023.

Despite challenging economic climates, AzerGold and its subsidiaries have made significant contributions to the state, paying 38.4 million manat in taxes and 7.6 million manat in dues to the state social welfare fund in 2023. The company's commitment to sustainable growth is evident in its plans to increase gold and silver production in 2024, aiming for 70,000 oz of gold and 156,800 oz of silver.

Conclusion:

AzerGold's iron ore venture marks a significant stride towards achieving self-sufficiency in ore production, with the Dashkesan project poised to elevate Azerbaijan's standing in the global mining arena. The commitment to completing all project phases by mid-2027 showcases AzerGold's dedication to fostering economic growth, leveraging valuable resources, and contributing to the nation's prosperity.

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