Anglo Asian Mining PLC has announced amendments to its production sharing agreement (PSA) in Azerbaijan. The PSA, held by its subsidiary, Azerbaijan International Mining Company Limited (AIMC), will now be with AzerGold Closed Joint Stock Company instead of the Ministry of Ecology and Natural Resources (MENR). This change is due to AzerGold's establishment to develop the mining sector in Azerbaijan. The revised PSA also includes the right for AIMC to use existing mining facilities and equipment within specific contract areas.
The amendments are expected to benefit Anglo Asian Mining, as it will now collaborate with AzerGold on exploration, development, and mining projects under the PSA. AzerGold's expertise in the mining sector, including obtaining permits and governmental procedures, is anticipated to support the development of Anglo Asian Mining's portfolio. Reza Vaziri, Chief Executive Officer of Anglo Asian Mining, expressed enthusiasm about the collaboration with AzerGold while maintaining a strong relationship with the MENR.
The recent ratification of a law by the Azerbaijan Parliament to replace MENR with AzerGold signifies the formalization of these amendments. Anglo Asian Mining is a gold, copper, and silver producer with a strategic plan to transition to a multi-asset, mid-tier, copper, and gold producer by 2028. This growth plan includes bringing four new mines into production between 2024 and 2028 at Zafar, Gilar, Xarxar, and Garadag, with copper becoming the principal product by 2028.
The company's strategic plan aims to achieve a forecast production of around 36,000 copper equivalent tonnes by 2028. This strategic growth plan demonstrates the company's commitment to expanding its portfolio and transitioning into a significant player in the copper and gold production sector.