Gold production increases

By Azernews

By Mirsaid Ibrahimzade

It is not a secret that well-managed, transparent and accountable gold extraction can be a major contributor to economic growth due to the creation of employment and business opportunities for local people.

Gold mining statistics showed positive dynamics In Azerbaijan, whose gold mining industry is relatively weak in comparison with other major sectors which are making a significant socio­-economic contribution to country’s economy.

In January to June 2019, gold production in Azerbaijan amounted to 1,720.9 kg, which is 8.9 percent more than the same period of last year, the State Statistical Committee of Azerbaijan informed local media.

As much as 325 kg of gold was mined in Azerbaijan this June.

Gold mining amounted to 4,238.6 kg in Azerbaijan in 2018, which recorded a decrease by 31.7 percent compared to figures of 2017.

Gold mining in Azerbaijan is currently carried out by two companies. In particular, Azerbaijan signed on August 21, 1997, a contract involving the development of 6 fields: one in Nakhchivan, two in the Gadabay region of Azerbaijan (450 km west of Baku) and three in Kalbajar and Zangilan, currently occupied by Armenian forces. This fact is the core reason of partial realization of potential of the country so state takes solid measures to reach maximum productivity from existing deposits.

The share of Azerbaijan is 51 percent in the contract, while Anglo Asian Mining PLC holds 49 percent.

Under the contract, 400 tons of gold are planned to be extracted from these six deposits.

The extraction of the first gold from the Gadabay deposit began in 2009, the extraction of silver in 2010. Gold mining from the Gosha field began in the third quarter of 2013. The company also in the summer of 2015 put into operation the Gadir gold mine, in September 2017 - the Ugur mine.

As for other precious metals, silver production in Azerbaijan  amounted to 1,719.1 kg in January to June 2019, which is 20.4 percent more than in the same period of 2018.

On July 1, 2019 stocks of mined silver in the warehouses of manufacturing companies are 629.2 kg.

Silver production in Azerbaijan  amounted to 2,671.1 kg in 2018, which is 3.8 times more than in 2017.

The government expects silver production in Azerbaijan at 2.1 tons in 2019.