Gold Production Increased

Extraction and primary processing of precious metals in Azerbaijan for 10 months of this year rose by 10.7 %. This was made possible thanks to the commissioning of the new plant opening a new factory in Gedabek by Azerbaijan International Mining Company Limited.

According to the State Statistics Committee, in January- October this year the Azerbaijan mining operating company that operates the gold mine Gedabek extracted 1,364.3 kg of gold and 584.3 kg of silver, respectively by 8.5 % and 16 % more than in the comparable period of 2012. In addition, the volume of copper ore and concentrate totaled 294.9 tons, down 31.8 %.

The new plant in Gedabek processes 100-150 tons of ore per hour. While the old mill operating since 2009 extracted 70 % of the gold from the ore, the new one produces 85%. It provides for the production of 32 million ounces of gold per year.

According to the PSA contract for development of several gold deposits on the area of ??1,962 square kilometers between the Government of Azerbaijan and RV Investment Services LLC (United States) at the completion of the investment the government's share in the project will reach 51%. It is projected to produce 300 thousand ounces of gold in the first 6 years of field development.

The gold mine Gedabek began gold extraction in May 2009. The gold mining project in the contract area is operated by Anglo Asian Mining PLC, which is listed on the London Stock Exchange. Active lender to the project is the International Bank of Azerbaijan.

  In 2012, the operating company transferred to the state its share of 6,560 ounces of gold and 6,369 ounces of silver.

According to the State Customs Committee, in 2012 it was exported 1,461.9 1 kg of gold ($ 80,797,700) and 591.7 kg of silver ($ 610,800).

During 10 months of this year the production prices for precious metals fell by 0.8% compared with the same period last year. -08D-