Minister of Economy visits Dashkasan iron ore and Chovdar gold deposits

In accordance with the Presidential Decree dated September 1, 2020 the research, exploration, development, and management of ferrous metal ore deposits in the country, as well as the application new technologies, modernization of material-technical base and other tasks related to the development of this field, were added to the line of activities of AzerGold with the view to implement the enhancement and development measures in the metallurgical complex.

In order to recognize the execution status of the Decree, Minister of Economy Mikayil Jabbarov visited Dashkasan Iron Ore and Chovdar gold deposits. The minister first went to Dashkasan iron ore deposit and ore refining field.

Chairman of the Executive Board of AzerGold Zakir İbrahimov gave detailed information about geophysical research and geological exploration works carried out within the framework of initial preliminary assessment report on re-commissioning of the deposit. He stated that, upon the conclusion of geological exploration works, geological models of the deposit will be developed, and existing resources and reserves will be re-assessed based on international JORC standards. Geological exploration works will be completed in the first half, while the research and preliminary assessment report will be finalized in the second half of 2021 under the program.

The minister called “Dashkasan” deposit promising due to the production and export potential of steel products from raw materials, which will eventually replace imports. Mikayil Jabbarov also mentioned that the re-exploitation of the field will have a positive effect on the socio-economic development of the western region of the country and will lead to strengthening the mining industry and metallurgy in the non-oil sector. The Minister of Economy underlined the importance of construction works in the iron ore field through the application of the modern standards and advanced international technologies. Emphasizing the significance of re-commissioning in terms of new jobs, the minister pointed out that the process will make a special contribution to the development of human capital.

Then the visitors went to the refining factory. The minister got acquainted with the current condition of the facility, which has been abandoned for a long time, and gave instructions and recommendations regarding the operation of the field. He stated that these works are important for the development of both the region and the non-oil sector in general.

During the visit, the Minister of Economy also met veterans working at the plant. At the meeting, the participants exchanged opinions regarding the current condition of the facility and future development prospects.

Ahad Abiyev, the head of the Dashkasan Executive Power, noted that these actions will have a positive impact on the socio-economic development of the district and the western region in general, and will create new prospects for the development.

Meanwhile, the minister visited Chovdar Ore Processing Area of AzerGold CJSC. He was informed about the economic indicators obtained as a result of the successful operation of the field. It was noted that for 4 years operation, AzerGold achieved significant success in terms of both financial stability and operational efficiency. Over 202,000 ounces of gold and 350,000 ounces of silver extracted from "Chovdar" mine during this period have involved about AZN493 mln. to the country's economy. AZN 36.7 million of these funds were transferred to the state budget in the form of taxes and social transfers. As a result of effective operation during 2016-2019, undistributed profit of the Company was AZN 35 mln., 15 mln. of which was used to raise the charter capital.

During the visit, the presentation covering all the stages of the production chain in "Chovdar" Ore Processing Area were shown to the attendees. Moreover, detailed information about the deposits to be exploited by "AzerGold" CJSC in the near future, ongoing geological exploration works, as well as the environmental protection and corporate social responsibility policy was given to the visitors. Visitors also watched the presentations regarding the projects under implementation within the framework.

The Minister of Economy also got acquainted with the process of rock blasting, metal casting and alloy preparation in the mining area.

At the end, the "Agyokush" gold deposit, which is located near Chovdar deposit and is currently under development, was inspected and the actions taken in this direction were discussed.

Notably, in accordance with the Decree of the President of the Republic of Azerbaijan dated August 6, 2020, "AzerGold" CJSC launched the implementation of geophysical surveys and geological exploration works within the framework of the preparation of the preliminary assessment document for the re-commissioning of Dashkasan iron ore deposit. The deposit was operated continuously from 1954 to 1994, 92 million tons out of 350 million tons of estimated ore reserves were produced during these years.