Azerbaijan is currently exploring the possibility of establishing a new primary aluminum plant with an annual production capacity of approximately 200,000 tons.
Operative Information Center-OMM reports that Economy Minister Mikayil Jabbarov made the remarks at a meeting chaired by President Ilham Aliyev on the State Program for the Development of the Mining (Metal Ores) and Metallurgical Industries for 2027–2030.
He said that the expansion of geological exploration in Garabagh and Eastern Zangazur is also envisaged:
“The program covers not only the period until 2030, but also identifies significant development opportunities for the subsequent stage. By that time, the possibilities of bringing the copper, zinc and lead reserves of the Filizchay polymetallic deposit into economic circulation will be assessed and finalized. The potential for using approximately 470,000 tons of additional copper reserves at the Demirli deposit will be examined. A final assessment will be made of the possibility of forming the raw-material base for the aluminum value chain from the Zaylik alunite deposits.”
The minister said there was considerable potential for establishing a regional processing center:
“One of our long-term goals is to assess Azerbaijan’s potential to become a regional processing center for strategic minerals. Significant increases have been observed in the prices of selected strategic metals over the past 10 years. Global demand for these metals is expected to increase further over the next decade. Growth of 23% for aluminum, 21% for copper, 15% for zinc and 10% for gold is forecast. Azerbaijan has a number of opportunities and advantages in this area. We are located along the Central Asia–Europe corridor and play a key role as a result of your policy. The Port of Baku and the Baku–Tbilisi–Kars railway provide important logistical opportunities. The Alat Free Economic Zone and our other industrial zones offer additional possibilities. Competitive energy prices are also an important advantage for our country. In addition, access to the raw-material potential of Central Asia and the South Caucasus could expand Azerbaijan’s regional processing capabilities.”
Jabbarov said total investment needs under the program for 2027–2030 were estimated at 5.3 billion manats.
“Of this amount, 1.1 billion manats will come from the state budget, 2.2 billion manats from the funds of state-owned enterprises, including loans, or debt capital, and 2 billion manats from private funds, including debt capital. Thus, approximately 80% of total investment will be attracted from non-budgetary sources. In this regard, mobilizing the investment capacity of state-owned enterprises and the private sector is one of the main tasks before us. As a result of the new capacities to be created, the sector’s added value and annual export potential are expected to increase 2.6-fold over the next four years.”
Primary aluminum is produced by processing alumina and is a key input for the transport, construction, packaging and energy industries. Developing domestic production and related processing capacity could help Azerbaijan increase value-added exports and strengthen its position in regional metals supply chains.
