Iron Heart of Azerbaijan

Azerbaijan’s land is very rich. For many years, priority was given to oil production, as Azerbaijan was for a long time the main source of fuel first for Tsarist Russia and then for the USSR. Oil was a strategic raw material, and other subsurface riches received little attention.

Now, in light of building a non?oil economy, the mining industry is beginning to come to the fore. This sector in Azerbaijan has great prospects. This is evidenced by preliminary assessments and data from geological exploration work carried out in Soviet times. The results of these studies were in many cases not applied to practical use due to the outbreak of the Karabakh conflict and its consequences. Either the deposits were located in occupied territory, or near the former line of contact, which made the work dangerous. In some cases, the state simply did not have the funds for development, as the war and occupation triggered a deep economic crisis.

Be that as it may, today Azerbaijan has set a new strategic goal — to develop the mining and metallurgical industries. Its goals are reflected in the State Programme for the Development of the Mining (Metal Ore) and Metallurgical Industries in the Republic of Azerbaijan for 2027–2030, approved on September 22 by President Ilham Aliyev.

The document is extensive and details every step that must be taken to achieve the goal. The State Programme provides for a very short timeframe for this. However, this decision is based on the realities of today’s Azerbaijan. Today’s Azerbaijan has all the capabilities to establish such a labor?intensive and capital?intensive industry within three years. Moreover, in the context of diversifying the national economy, the mining industry and the production of finished metal products may, in the long term, surpass the traditional oil “pillar” in terms of significance.

There are sufficient grounds for such statements. Thus, the Balaken District of the country is home to the Filizchay polymetallic deposit, which is the largest in the region and the second largest in Europe in terms of volume. The deposit was discovered in 1959 and is notable for its large reserves of precious and non?ferrous metals such as copper, zinc, gold, silver, and lead.

It should be noted that polymetallic deposits are those that contain several different metal ores. Such deposits, which are important components of the mining industry, have significant industrial importance.

In 2022, CJSC AzerGold raised the assessment of the underground resources of “Filizchay” by examining ore samples in the laboratory of the British company Petrolab. In accordance with the requirements of international standards, 67 wells with a total depth of 19,595 meters were drilled, and a detailed analysis of the results was carried out. The field’s resources were calculated in accordance with the requirements of the standards of the international system for classifying the economic evaluation of mineral deposits (JORC). According to the calculations, the assessment of the resources has increased significantly; it has been confirmed that the reserves of underground ore resources at the Filizchay deposit amount to 112.71 million tons.

As President Ilham Aliyev noted at the meeting dedicated to the State Program, the Filizchay deposit is considered one of the most promising on the European continent, it has enormous potential, and the AzerGold company has been working for several years to prepare it for operation.

“I believe that a feasibility study should be ready soon, and a final investment decision should be made. I believe that AzerGold should be a 100?percent shareholder in this deposit. As the deposit is developed, its value and worth will naturally increase. Then we will be able to consider — perhaps, if interest arises — and I am sure it will — the possibility of attracting foreign investors to develop this deposit, at a certain percentage level,” the head of state said.

One can see how much has changed since Azerbaijan signed the “Contract of the Century” in 1994. Back then, Baku had no opportunity to implement a grand project without the participation of external players, without their investments, and without transferring a significant portion of the profits to them. Today, the President of Azerbaijan is calmly discussing the development of the second?largest ore deposit in Europe without the share participation of foreign companies. This does not mean that the project will not have partners for supplying technologies and equipment, for example, or for carrying out certain segments of work as a contractor. However, the current situation allows the country to keep all the shares and all the profits in its own hands. Because joining the ranks of medium?sized states is not just an automatic change of status.

Speaking at the meeting, the President said that Azerbaijan had received offers from foreign partners regarding the production of aluminum in our country, but they were rejected. Because Baku is striving to implement mechanisms that can benefit the national economy as much as possible and to develop this area independently.

This is a very important point. President Ilham Aliyev has repeatedly stated that economic independence is the cornerstone and the main condition for ensuring the true political independence of the state. Azerbaijan has achieved economic independence and continues to strengthen it, including through the development of mining and heavy industries.

 It is also noteworthy that Azerbaijan no longer wants to act solely as an exporter of raw materials. The goal is to become a supplier of finished metal products. In order to achieve this goal, in January 2026, the head of state signed a decree establishing the Western Industrial Park.

The Western Industrial Park is a new economic zone being established in the city of Ganja and the Shamkir district. The main goal is to develop the mining and metallurgical industries, primarily through the development of the Dashkesan ore deposit and projects in the surrounding areas. It is planned to create a full processing cycle here — from ore extraction to the production of the final finished product, including plants for ore processing, pellet production, and briquetting of iron.

As President Ilham Aliyev stressed at the meeting on Tuesday, first of all, infrastructure should be created in the Western Industrial Park as soon as possible, for which the necessary funds should be provided in the budget.

"A complete chain of the mining industry should be created, right up to the final product. Here, of course, ore mining and the creation of several factories are envisaged. Plants for the processing and production of pellets and briquetted iron should be established. Ore transportation occupies an important place. Therefore, it is necessary to provide preferential transportation tariffs in order to ensure economic efficiency. It is necessary to conduct a maximum environmental assessment and comply with all environmental standards, because our main wealth is not what is underground, but our nature," the head of state said, emphasizing the requirement for compliance with environmental standards from both foreign partners and the state-owned company AzerGold.

The Dashkesan iron ore deposit is well-known and promises great prospects for the production of metal products based on local raw materials. The deposit, with reserves amounting to 350 million tons of ore, was continuously exploited between 1954 and 1994, during which 92 million tons of minerals were extracted.

In August 2020, the head of state signed a special decree on measures to re?commission this deposit. The decree provided for the allocation of funds to AzerGold as part of the work to prepare the initial assessment document.

In November 2025, in Beijing, a subsidiary of Da?k?s?n D?mir Filiz - Azerbaijan Metal Company LLC and the Chinese company Sinosteel Equipment & Engineering Co., Ltd signed a contract for the preparation of a bank IEE for the construction of a hot briquetted iron (HBI) plant with a capacity of 2 million tons per year. The plant is planned to be commissioned in 2029 in the territory of Shamkir district, production, as reported, will be organized on the basis of environmentally friendly technologies. The plant will be built taking into account the opportunities provided by Azerbaijan’s subsoil. In 2023, the Dashkesan deposits were reassessed using modern technologies, and as a result, their potential was increased by 70 million tons.

Let us clarify that Da?k?s?n D?mir Filiz, in turn, is a subsidiary of AzerGold and was established in December 2020 to restore and develop the Dashkesan iron ore deposit.

In July 2021, President Ilham Aliyev visited the Dashkesan District. During the trip, he gave an interview to national television, in which he also touched upon specific plans related to the field. This sector, the head of state emphasized, will generate very large revenues. Thousands of jobs will also be created, and dependence on imports will be reduced. In the previous five years alone (as of 2021 — ed.), the country spent 1.7 billion manats on the import of iron products. Thus, the development of the industry will dramatically reduce dependence on imports, create a high-value chain, and increase export opportunities, President Ilham Aliyev said.

At a meeting on Tuesday, Economy Minister Mikail Jabbarov said that local pellet production facilities will be created within the "Dashkesan" project. According to the minister, the implementation of this project will take place in stages. Mining will be restored, facilities for the enrichment and production of pellets will be created, and it is also planned to create a plant for the production of hot briquetted iron. That is, an industrial chain will be formed — from ore extraction to ore processing.

The minister also noted that the main goal regarding aluminum is to expand the existing production chain and transition to products with higher added value. As a result of all the planned measures, it is planned to increase Az?ralüminium exports from 252 million manats in 2025 to 510 million manats in 2030.

Jabbarov also reported that there are plans to increase the production of copper, gold, and silver, and the export of these metals is projected to reach 1.6 billion manats in 2030, compared to 600 million manats in 2025.

The development of the mining and metallurgical industries will enable Azerbaijan to carve out its own niche in this segment of the global economy as well.