Azerbaijan is currently exploring the possibility of establishing a new primary aluminum production facility with a capacity of approximately 200,000 tons per year.
Economy Minister Mikayil Jabbarov made this statement at a meeting chaired by President Ilham Aliyev on the State Program for the Development of the Mining and Metallurgy Industry for 2027-2030.
He also stated that expanded geological exploration was planned in Karabakh and Eastern Zangezur.
“The program covers not only the period up to 2030 but also identifies significant development opportunities for the subsequent phase. Potential for commercialization of copper, zinc, and lead reserves at the Filizchay polymetallic deposit will be assessed and finalized by that time. The potential for using approximately 470,000 tons of additional copper reserves at the Demirli deposit will be considered. A final conclusion will be reached regarding the feasibility of forming a raw material base for the aluminum value chain at the Zeylik alunite deposits,” he said.
The minister noted the potential for a regional processing hub. He added that one of the long-term goals was to evaluate the possibility of transforming Azerbaijan into a regional processing hub for strategic minerals.
“Over the past 10 years, there has been a significant increase in prices for certain strategic metals. Global demand for these metals is expected to grow even further in the next 10 years. Aluminum production is projected to grow by 23%, copper by 21%, zinc by 15%, and gold by 10%. Azerbaijan has a number of opportunities and advantages here. We are located on the Central Asia-Europe corridor and, thanks to your policies, play a key role. The Port of Baku and the Baku-Tbilisi-Kars railway create important logistical opportunities. The Alat Free Economic Zone and our other industrial zones provide additional opportunities. Competitive energy prices are also a significant advantage for our country. Furthermore, access to the raw material potential of Central Asia and the South Caucasus could expand Azerbaijan’s regional processing capabilities,” the minister said.
Jabbarov noted that the total investment requirement under the 2027-2030 program was estimated at 5.3 billion manats. Of these funds, 1.1 billion manats will be provided from the state budget, 2.2 billion manats from state-owned enterprises, including loans (i.e., borrowed capital), and another 2 billion manats from private funds, including borrowed capital.
“Therefore, approximately 80% of total investments will be attracted from extra-budgetary sources. In this regard, mobilizing the investment potential of state-owned enterprises and the private sector is our primary objective. As a result, the new capacity being created over the next four years is expected to increase the sector’s added value and annual export potential 2.6-fold,” he concluded. (Report)