30 Jan 2024 17:46

AzerGold could commission iron ore mining and processing plant by middle of 2027

BAKU. Jan 30 (Interfax) - Dashkesan Demir Filiz LLC (DDF), a subsidiary of Azerbaijani miner AzerGold, plans to build and commission all three stages of its iron ore project by the middle of 2027, DDF chief Jeyhun Aliyev said.

AzerGold plans to deliver the project at the Dashkesan iron ore field in three phases: a beneficiation plant adjacent to the deposit to produce concentrate with Fe content of 67% at the first stage, then a pelletizing plant and finally a plant to produce hot briquetted iron with 95% Fe content.

"All three plants will be built in parallel. The timing of construction is, of course, also related to the search for investors. However, we plan to complete the construction of all three plants and put them into operation by mid-2027," Aliyev said at a press conference, answering a question from an Interfax reporter.

He said DDF continued work on the project while looking for an investor.

"There are no delays on our part. We plan to complete designs for all three plants this year and launch the next stage, as well as wrap up the issue related to investors," Aliyev said.

Reports have said overall project costs are estimated at 1.7 billion manat or $1 billion at the current rate.

AzerGold said annual ore production would run to 3 million-3.2 million tonnes, from which 1.3 million tonnes of concentrate and pellets would be obtained and finally 900,000 tonnes of HBI for sale.

Azerbaijani President Ilham Aliyev signed an order on measures to develop the Dashkesan field on August 6, 2020. The field was mined intensively from 1954 to 1994, and intermittently from then until 2017. The field consists of six deposits: Northeast, Northwest, Southeast, Southwest, Damirov and Dardara. Mining at Southeast started in 2022.

AzerGold was established by a presidential decree dated February 11, 2015. The company is engaged in the study, research, exploration, development and management of the gold and iron ore deposits of Garadagh, Chovdar, Goydagh, Dag-Kesamam, Kokhnemeden and the Kurakchay basin.