Azerbaijan launches industrial copper mining: Demirli opens up new opportunities

On January 13, President of the Republic of Azerbaijan Ilham Aliyev got acquainted with the activities of the Demirli mining and processing complex in the village of Janyatag in the Agder district.

Demirli is the first mining project implemented in the liberated territories of Azerbaijan. The copper flotation plant will process the ore produced at the Demirli mine and produce the final product, copper concentrate. Its annual production capacity is 5.6 million tons of ore.

Unfortunately, the Demirli deposit was illegally exploited by the Armenian side for 10 years, during which time 218,000 of the 311,000 tons of copper reserves known at that time, that is, 70 percent, were illegally mined. The initial period of operation of the remaining reserves covers 2025-2030. During this period, it is planned to export 85 thousand tons of copper to the People's Republic of China in the form of concentrate worth 1.6 billion. manats. At the same time, it is reported that an increase in copper reserves is projected at Demirli in the coming years. According to preliminary geological survey data, there are about 470 thousand tons of additional copper reserves here. As a result of the exploration and research program, which will take 4 years, the volume of recoverable copper reserves at the deposit will be clarified.

Production at the field is conducted by the operating company Azerbaijan International Mining Company Limited (AIMC is a subsidiary of the British mining company Anglo-Asian Mining, AAM) within the framework of the agreement concluded in 2024 between AzerGold CJSC and the American company RV Investment Group Services on exploration, development and production sharing at a number of ore deposits in Azerbaijan.

The Gyzylbulag gold deposit and the copper-molybdenum Demirli located in the Agdera region came under the control of Azerbaijan after the anti-terrorist operation in September 2023.

Both fields were discovered and explored by Azerbaijani geologists during the Soviet era, but due to the Karabakh conflict unleashed by Armenia and the separatist movement in Karabakh, Azerbaijan did not have time to start practical development of the fields before the occupation. And the Armenians got them untouched.

For a long time, the invaders could not approach the deposits due to lack of funds and technical capabilities. The development of the Demirli field began in 2013. In 2016, the Demirli mining complex was launched. The Armenian Base Metal was engaged in mining at both mines, while the Vallex Group managed everything. The Prosecutor General's Office of Azerbaijan has established that in 2009-2017, the Vallex group of companies received income in the amount of 302 million manats due to the illegal exploitation of Azerbaijan's natural resources.

During the years of occupation, it was possible to observe what was happening at the mines via satellites. At that time, Azerbaijan could only record violations and plundering of its natural resources. Baku appealed to various international authorities with a request for assistance in ending the lawlessness, but they remained unanswered.

According to Armenian media, Beys Metals has always been controlled by former Armenian President Robert Kocharyan. That is, during all the years of occupation, he received dividends from illegal mining of gold and copper in the occupied territories.

Demirli and Gizilbulag remained under separatist control for three more years after the Second Karabakh War, but the Armenians were forced to stop plundering their resources after the start of the eco-activist campaign in December 2022. In the first months after the war, the illegal exploitation of deposits in the RMK area was stopped, but after a short time, Armenian businessmen resumed looting Demirli with the involvement of foreign partners. Moreover, Ruben Vardanyan was directly involved in this lawlessness. The separatists and their sponsors calmed down and believed that they could continue illegal mining, quietly transporting ore along the Lachin road, which they thought was inaccessible to the control of the Azerbaijani side. However, it was self-deception.

For Demirli, everything changed after the eco-activists' action broke out. The protests began after Azerbaijani specialists were prevented from entering the mines by Armenians and peacekeepers on December 7. Although they were not allowed to approach the scene, they determined from a distance that very intensive work was underway at the field, and the development area had doubled. Moreover, according to satellite data, in the year preceding the action, the area of illegal exploitation of Demirli doubled. Separatists and thieves like Vardanyan were in a hurry to take out as much as possible.

Representatives of Base Metal tried to turn the issue into an environmental issue, disguising the very fact of plundering the resources of a foreign country. The company claimed to comply with all environmental standards, as if this could justify violating international law. But even if it were a purely environmental issue, the companies that plundered the bowels of Azerbaijan would have nothing to say. During the years of occupation, environmentalists of Armenia itself repeatedly sounded the alarm about the destruction of flora and fauna and the pollution of water bodies during the development of Karabakh's natural resources. Thus, it was confirmed that with the start of operation of the copper-molybdenum deposit in the Agderinsky district, toxic substances began to be dumped into the rivers flowing towards the Terter.

After the start of the action, the fraudster Ruben Vardanyan visited the mine to clarify the situation, so to speak, He talked with the mining company, inspected the territory and stated that the conditions of the Azerbaijani side would not be accepted. The Russian billionaire tried to make a good face at a bad game and hide behind concern for the workers. They say that with the closure of the mine and the factory, the employment of local Armenians will suffer.

The Azerbaijani side was not satisfied with this response. What happened next is well known to everyone. The Lachin road was completely blocked, and the ore export had to be stopped. And then the mining stopped. On December 22, Base Metals announced the suspension of operations. The robber could not admit the reasons for such a step, and announced that he was stopping to allegedly attract international experts. The real reason was the action of eco-activists and the inability to continue working. It is noteworthy that a couple of days before the Armenian operator made such a decision, the British Anglo Asian Mining PLC, which has the real right to develop the Karabakh deposits, appealed to a number of international organizations and governments, including the United Nations, the US State Department, the British Foreign Ministry and the European Union with a statement. The company has asked for assistance in restoring its rights, which are being violated by others. AAM asked for help to ensure the safe access of its employees to Gizilbulag and Demirli, as well as to the adjacent exploration territories in Karabakh, to which AAM is entitled under a PSA-type contract signed in August 1997 with the Government of Azerbaijan.

We do not know if there was any signal to the robbers from the recipients of this appeal, but after a few days the Armenians had to stop work. And these works were not resumed again.

The Demirli field was transferred to Anglo Asian Mining Company under a concession agreement concluded in July 2022, along with other contract areas totaling 340 square miles. The agreement was signed with the rightful owner of these riches, Azerbaijan. And, despite the op arranged by the Armenian side, it was the only legal document regarding the work at this field. The Armenian media looked very funny, trying to conduct some kind of "investigation" and incriminate AAM in some kind of collusion and corruption.

Then everything began to change with great speed. In the spring of 2023, Azerbaijan took full control of the Lachin road, established a border checkpoint on the Khakari Bridge, and in September of the same year, a bold dot was put in the history of Armenian separatism in Azerbaijan.

Azerbaijan's natural resources have returned to their true owners.