Mining company in Azerbaijan signs new contract with gov't

A mining company operating in Azerbaijan has signed an agreement with the Government of Azerbaijan which awards the company three new concessions, Report informs via foreign media.

Anglo Asian Mining plc already has a site containing over 300,000 tonnes of copper with an in-situ value of over $3bn at current prices.

One of the new sites contains a copper-molybdenum deposit. According to an unsubstantiated report in January 2016, the deposit contained an estimated 275,000 tonnes of copper and 3,200 tonnes of molybdenum.

Anglo Asian CEO Reza Vaziri commented: “The recent cessation of hostilities with Armenia has presented an opportunity for Anglo Asian to develop its remaining contract areas, granted in 1998 and to significantly accelerate its growth strategy towards becoming a mid-tier gold and copper producer.

According to him, following extensive negotiations, we are very pleased to have secured two additional highly strategic mining properties immediately adjacent to the north of the Gedabek contract area: “Together with the new Demirli mining property, they ensure the Company is now in an excellent position to generate long-term sustainable growth with a greatly increased resource and reserve base with outstanding exploration potential.”

The new concessions will be effective following ratification by the Parliament of the Republic of Azerbaijan.

Anglo-Asian Mining is engaged in production in Azerbaijan under the PSA (Production Sharing Agreement) signed on August 21, 1997. Azerbaijan's share in the contract is 51%, while the share of the Anglo-Asian Mining Plc makes 49%. The first gold production (from the Gedabek deposit) began in 2009. The Gedabek deposit is made up of integrated open-pit mines. The company is also engaged in production at the Gosha underground mine, 50 km off Gadir and Gedabek deposits as well as the newly discovered Ugur open pit.