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AzerGold attracts $310.1m to national economy

26 November 2020 [17:39] - TODAY.AZ

By Azernews

By Ayya Lmahamad

AzerGold CJSC has attracted more than AZN 527.3 million ($310.1M) to the country’s economy as a result of export operations carried out over the past three years, the company has reported.

According to the statement, during the reported period more than 213,400 ounces of gold and 372,700 ounces of silver were sold.

Of this amount, some AZN 39.3 million ($23.1m) was transferred to the state budget in the form of taxes and social transfers, of which AZN 33.7 million ($19.8M) were taxes and AZN 5.6 million ($3.2M) were transferred to the State Social Protection Fund.

Thus, as a result of efficient operations for many years, undistributed profit amounted to AZN 35 million ($20.5M), of which AZN 15 million ($8.8M) was directed to increase the authorized capital of the company.

It should be noted that these economic indicators were obtained as a result of the exploitation of the Chovdar gold deposit in Dashkasan region. Intensive work is currently underway to prepare new deposits for operation.

Moreover, in the coming days, the company plans to start production at the Agyokhush deposit in Dashkasan region. In addition it is planned to launch the Marakh deposit and in 2022 the Tulallar and Chovdar gold deposits, all in Dashkasan region.

Furthermore, as a result of optimization of Filizchay project, which is considered as one of the largest polymetallic deposits in Europe, it will be possible to shift the start date of works at this deposit 2 years earlier than originally planned, i.e. in 2025.

In the meantime, cooper deposits Garadag, Kharkhar and Jayirchay in Shamkir and Gadabay regions are planned to be commissioned in 2026, and another polymetallic deposit Mazymchay in Balakan region in 2027.

It should be noted that the schedule for the launch of the project was determined based on the initial evaluation results. The results of the next stage of research and analysis do not rule out the possibility of earlier commissioning of some fields.

Additionally, it should be noted that for the first nine months of the year gold takes the second place in the list of non-oil export products of the country. The commissioning of the above-listed new deposits of gold and other non-ferrous metals will further increase the contribution of the mining sector to the country's economic growth of the country. This, in its turn, will play an important role in the development of the non-oil sector, as well as give a great impetus to attract millions of manats to the country's economy and the region's socio-economic development.

Gold mining in Azerbaijan is currently carried out by two companies - AzerGold CJSC, which owns 51 percent in Azerbaijan’s gold share, and Anglo Asian Mining PLC, with 49 percent of shares. PSA type contract was signed on August 21, 1997, and envisages the development of six fields.

Extraction of the first gold in Azerbaijan started in 2009, and silver in 2010.

AzerGold CJSC is a national mining company, which was established on February 11, 2016, under the presidential decree.


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