Briefing on AzerGold’s key targets and responsibilities under the 2027–2030 State Programme for the development of the mining and metallurgical industries in Azerbaijan

Speaking at the briefing, Zakir Ibrahimov, Chairman of the Executive Board of  AzerGold CJSC, provided detailed information on the targets set, strategic priorities identified, and the implementation of new projects discussed at the meeting held on 22 September 2026, chaired by the President of the Republic of Azerbaijan, Mr. Ilham Aliyev, and dedicated to the “State Program for the Development of the Mining (Metal Ores) and Metallurgical Industries in the Republic of Azerbaijan for 2027–2030".

Speech

- Dear members of the media, dear ladies and gentlemen, I welcome you all and thank you for attending today’s briefing. As you know, two days ago, a meeting chaired by His Excellency President Ilham Aliyev was held on the “State Programme for the Development of the Mining and Metallurgical Industries in the Republic of Azerbaijan for 2027–2030.” The State Programme was approved by a Presidential Order yesterday.

The State Programme is of particular significance as it marks the beginning of a new stage in the development of Azerbaijan’s mining and metallurgical industries. Over the next four years, the Programme will focus on the efficient utilisation of the country’s mineral resources, bringing new deposits into production, and expanding processing and metallurgical capacities alongside mining activities, with the aim of generating greater added value domestically.

As Mr President noted, both objective and subjective factors constrained the development of Azerbaijan’s mining industry for many years. As a significant share of the strategic metal deposits, discovered during the Soviet period, remained under occupation, those natural resources were illegally exploited by Armenia.

Implementation of the State Programme starts a new era, particularly in our liberated territories. The precious and non-ferrous metal deposits located in Garabagh and East Zangezur are among the key priorities of the State Programme. As you are aware, mining operations have already commenced at the Demirli copper deposit, located in Janyatag village of Aghdara district. Production process is expected to begin in Kalbajar district in the short term. Work is in progress to reassess existing reserves in Zangilan district by applying modern geological methods, to enhance the resource base, and complete the technical and infrastructure preparations required for future production.

As was emphasized by Mr President, substantial mineral resource potential exists not only in Garabagh but also in the surrounding districts. Therefore, large-scale exploration has commenced by applying modern geological technologies for identifying new deposits.

The third geographical priority highlighted by the President is the Nakhchivan Autonomous Republic. Geological exploration in Nakhchivan was insufficient both during the Soviet period and in subsequent years. This region also has significant mineral potential, and the expansion of geological exploration activities across the area is one of the key priorities of the State Programme.

At the meeting held on 22 September, President Ilham Aliyev set specific tasks in these areas. In particular, reassessment of existing deposits using modern technologies, expansion of geological exploration, establishment of a fully integrated production chain from ore to finished product, and facilitating private investment were identified as key priorities.

Today, the adoption of the State Programme is especially significant, as the role of the mining industry in the modern global economy has changed substantially. Green energy transition, electrification, digitalisation, and advances in high technology are driving demand for copper, zinc, lead, iron and other metal ores, as well as for critical mineral raw materials. At the same time, the resilience of global supply chains and mineral security are playing an increasingly important role. In this context, the adoption of the State Programme is a timely strategic step towards harnessing the growing global importance of Azerbaijan’s mineral resources more effectively.

Based on the results achieved over the years, we can say that consistent government attention and support have created an established foundation and expertise for implementing the State Programme and expanding a modern mining industry in Azerbaijan. Over ten years, AzerGold CJSC has significantly expanded its extraction, production, and revenue through the discovery of two new gold deposits, the commissioning of four gold mines and one regional industrial complex, and the development of new business lines. Consequently, AZN 2.3 billion in revenue was generated for the national economy and AZN 267.2 million in tax payments was contributed to the state budget as of August this year. During this period, the Company generated a total profit of AZN 618 million. Based on the financial results of 2025, approximately AZN 42 million of the profit is expected to be transferred to the state budget as dividends.

These results reflect AzerGold CJSC’s important role in advancing the country’s non-oil sector, enhancing export potential, contributing to state budget revenues, and generating economic value.

Accordingly, the State Programme not only marks the beginning of a new operational phase for AzerGold but also creates an opportunity to apply the expertise built up over the past decade on a broader scale. Our principal task in the next phase is to bring new deposits into commercial production, expand the mining and processing value chain, and generate greater domestic value.

AzerGold CJSC has a clear understanding of the responsibilities entrusted to it in this new phase. As we build on the progress achieved to date, our main objective for the period ahead is to continue contributing to the development of the sector in which we operate. In accordance with the Action Plan of the State Programme, AzerGold CJSC has been designated as the lead implementing entity for several key priorities within its area of responsibility.

First of all, our priorities include expanding the country’s mineral resource base and discovering new deposits, including the commercial development of gold, copper and other mineral resources.

The second key priority is to expand extraction and processing at existing deposits, use modern technologies, and improve production efficiency.

Another priority is the development of the value chain for precious and non-ferrous metals, that is, establishing an industrial chain that not only extracts raw materials, but also processes them into finished products with higher value. At the same time, establishing a raw material base for ferrous and non-ferrous metallurgy and developing strategically important polymetallic and iron ore deposits are also among the principal priorities.

Expansion of the mineral resource base and commissioning of new deposits

To date, AzerGold has carried out extensive exploration and development activities aimed at expanding the country’s mineral resource base.

• At the initial prospecting and evaluation stage, state-funded geological surveys covering 15,000 km² are currently underway and are scheduled for completion in 2027. These surveys will provide a comprehensive mapping of the country’s mineral resource potential, including that of the liberated territories.
• There are currently 10 prospective gold-copper areas under prospecting and evaluation stage. Resource estimation is ongoing and is expected to be completed in 2027.
• Comprehensive preparations are underway for initial prospecting and evaluation activities to be conducted by the planned joint venture in the Nakhchivan Autonomous Republic, pursuant to the agreement signed with International Resources Holding of UAE.
• AzerGold currently has five deposits in its portfolio at the preliminary exploration stage, and work is ongoing to further define the economically recoverable reserves. Preliminary resources of approximately 375,000, 289,000 and 849,000 GEO have been identified at the Goydagh and Bashkend deposits in Nakhchivan and the Mazimchay copper deposit in Balakan, respectively. The combined initial resource estimate for these three deposits is approximately 1.5 million GEO.
• Reserve estimation is continuing for the Nasirvaz polymetallic deposit in Nakhchivan and the Tutkhun gold deposit in Kalbajar.

Four strategic projects under the State Programme

AzerGold will implement four strategic projects under the State Programme: the Soyudlu gold project in Kalbajar district, the Ortakend gold project in Nakhchivan, the Filizchay polymetallic project in Balakan, and the Dashkasan iron ore project. The total investment in these projects is estimated at approximately AZN 3.63 billion, while their combined economic value is AZN 60.4 billion.

As is obvious, mining and metallurgical projects require substantial capital expenditure and long-term financing. At the meeting, Mr President highlighted the importance of creating broader opportunities to attract domestic and foreign private investment in the sector alongside public investment. AzerGold is operating in line with this principle. We plan to finance the strategic projects primarily through the Company’s internally generated funds and debt financing. We are also considering private and foreign investor participation, particularly in large-scale projects requiring substantial capital investment. The projects I mentioned above will be financed through the Company’s own funds and borrowings, the state budget, and potential investor participation. Only 10% of the financing will be provided from the state budget.

Gold

• The Soyudlu gold deposit is the first project scheduled to commence production. From 2028, the project is expected to have a nine-year mine life, a gold resource of 1.03 million ounces, an economic value of AZN 7.5 billion, and a required investment of AZN 425 million. The project will be financed through AzerGold’s internally generated funds and borrowings.
• The second project is the Ortakend gold deposit in Nakhchivan, where the first production is scheduled for 2029. The project is expected to have a nine-year mine life, a gold resource of 246,000 ounces, an economic value of AZN 1.8 billion, and a required investment of AZN 255 million. The project will be financed through AzerGold’s internally generated funds and borrowings.
• Bringing approximately 1.28 million ounces of additional gold resources from the Soyudlu and Ortakend projects into production will significantly increase the country’s gold production and exports.

Polymetals

• The Filizchay polymetallic deposit, considered one of the largest in Europe, is also among the world’s most complex polymetallic deposits due to its geological and other characteristics. The first production is planned for 2031–2032. Over a 34-year mine life, the project is expected to bring resources of 363,000 tonnes of copper, 2.7 million tonnes of zinc and 1 million tonnes of lead into production. The project’s economic value is estimated at AZN 29.7 billion, with required investment of AZN 1 billion.

As you know, at the meeting, Ilham Aliyev instructed AzerGold to initially operate as the 100% shareholder of the deposit. It was emphasized that the deposit’s economic potential is expected to increase as the studies progress. The possibility of attracting foreign investors as equity partners may be considered at a later stage, if necessary.

• Implementation of the Filizchay project will create new export opportunities and pave the way for the development of a new industrial sector in the country. It will also stimulate the region’s social and economic development, employment opportunities, and the development of mining-related industries. The project will create further opportunities for local contractors and suppliers, who serve mining and processing operations, as well as for logistics and other service providers. The Filizchay project will therefore contribute to developing the country’s non-ferrous metallurgy potential and establishing a new industrial value chain.

Ferrous metals

• The first production from the Dashkasan iron ore project is scheduled for 2030. The project, which includes mining, beneficiation, a pipeline system, pelletizing and a hot briquetted iron (HBI) plant, is planned to produce 40 million tonnes of HBI over a 20-year operating period.

The project’s economic value is estimated at AZN 24 billion, with required investment of AZN 1.95 billion. Financing will be provided through the state budget, borrowings and investor participation.

• Under the project, ore extracted from the Dashkasan mine will first be processed into concentrate at a beneficiation plant to be constructed at the mine site. The concentrate will then be transported to the plant to be built in Shamkir district for pellet production. For this purpose, the country’s first slurry pipeline, extending more than 40 kilometres, will be designed. At the final stage of the production chain, the pellets will be converted into hot briquetted iron, a key raw material for steel production.
• The plant, with an annual production capacity of 2 million tonnes, will be constructed in the Western Industrial Park located in Shamkir district. The realization of this project will establish a sustainable raw material base for high-quality domestic steel production. It means, annual 2 million tonnes of products will meet domestic demand, while excess production will be exported. This will reduce import dependence, expand export capacity, support non-oil sector development, and generate additional state budget revenue.

Strategic targets

Over the past ten years, AzerGold has transformed from a gold producer into a diversified national mining company covering geological exploration, ferrous and non-ferrous metals, industrial explosives, and non-metallic minerals. By 2030, AzerGold is expected to become a state-owned company with an annual turnover of AZN 1 billion. AzerGold aims to rank among Azerbaijan’s largest non-oil industrial companies for its revenue and employment. The experience we have gained and the strong foundation we have built over the past decade, with the support of government policy, provide a solid platform for the next phase of our development. Our aim is to contribute to the country’s economic growth while creating sustainable employment opportunities in the regions.

Environmental safety

Environmental safety is one of the most important considerations in the development of the mining industry. At the meeting, Mr President emphasized that environmental protection and compliance with the environmental standards must remain fundamental principles in the development of mineral resources. As a state-owned company, AzerGold is committed to these principles. Environmental considerations are incorporated at every stage of our activities, from exploration to production and processing. As we develop new projects, we will continue to apply modern environmental standards, minimize the environmental footprint of our operations, and ensure that rehabilitation measures are an integral part of each project.

Conclusion

Dear members of the media, over the next four years Azerbaijan will enter a new stage in the development of mining and metallurgical industries. Mr President’s directives, together with the targets set under the State Programme, provide a clear strategic direction for our activities. As the country’s national mining company, AzerGold will mobilize all its capabilities to meet the responsibilities entrusted to it and contribute to this important process. Our task in the years ahead is to discover new deposits, make better use of existing resources, and turn Azerbaijan’s mineral wealth into products with greater added value. This represents not only a new stage in AzerGold’s development, but also a broader opportunity to advance Azerbaijan’s mining industry.

Thank you for your attention.