BAKU, Azerbaijan, April 1. President of the Republic of Azerbaijan Ilham Aliyev has signed a decree on measures to ensure the development of the mining (metal ores) and metallurgy industries in the country, TurkicWorld reports.
"The development of the mining (metal ores) and metallurgy industries in the Republic of Azerbaijan is of strategic importance for the diversification of the economy, deepening industrialization, expanding the structure of exports, and accelerating the socio-economic development of the regions.
As a result of reforms carried out in recent years, the foundations for the industrial production of aluminum, gold, silver, and copper have been laid, and part of the metal ore reserves have been directed towards industrial use. Industrial extraction of noble and non-ferrous metal deposits has been organized through AzerGold Closed Joint Stock Company, and modern processing infrastructure has been established.
The renewal of ore processing plants in Dashkasan and Gadabay districts, as well as the exploitation of prospective deposits in the newly liberated territories, has expanded the production and export capacities of the mining (metal ores) and metallurgy industries. Additionally, the creation of the Western Industrial Park provides opportunities to expand the processing of iron ore reserves and deepen the value chain in the metallurgy industry.
At the same time, it's necessary to take additional measures for the efficient use of the existing mineral raw material base, strengthening production links between the extraction and processing stages, harmonizing infrastructure and logistics decisions, as well as expanding public-private partnerships.
Against the backdrop of the global energy transition and the development of high technologies, the growing demand for metals further enhances the strategic importance of this sector. Azerbaijan’s rich mineral resources, competitive energy supply, industrial promotion mechanisms, and its location on the Middle Corridor create favorable conditions for the sustainable development of related industrial sectors," the decree reads.
According to the decree, the Cabinet of Ministers must:
- Prepare a draft of the "State Program for the Development of the Mining (Metal Ores) and Metallurgy Industries in Azerbaijan for 2027–2030" within four months and submit it to the President of Azerbaijan.
- Ensure the inclusion of the draft State Program in the "Social and Economic Development Strategy of Azerbaijan for 2027–2030" and the "Second State Program on the Great Return to Azerbaijan's liberated territories" approved by the Presidential decree of May 30, 2025.
- Take into account ongoing or planned private sector projects in the mining and metallurgy sectors in the draft State Program, and establish mechanisms for support within the program.
- Ensure envisioning of measures to elevate the production capacity and expand export opportunities for "Azeraluminium" LLC in the draft state program, including:
- Completion of the electrolysis plant project and increase of its annual production capacity to 100,000 tons by 2030.
- Continuing the production of aluminum rolling products, reaching an annual production capacity of 50,000 tons by 2030.
- Ensure the identification of financing sources and the implementation of the construction of the calcination and anode baking plant together with the relevant state bodies (institutions) in accordance with the feasibility study prepared by the Azerbaijan Investment Holding;
- Take measures to improve energy and transport tariffs to increase the competitiveness of metallurgical products, and, including allotment of additional land and meeting electricity demands, if required.
- Take necessary measures to complete the electrolysis plant project and increase the annual production capacity to 100,000 tons by 2030, as well as to continue the aluminum rolling products production project and increase the annual production capacity to 50,000 tons by 2030, taking into account the feasibility study prepared by the Azerbaijan Investment Holding, and to finance it from the state budget;
- ensure transfer of the assets of "Azeraluminium" JSC to the balance sheet of "Azeraluminium" LLC,
- take necessary measures to write off the debts of creditors, as well as the debts to state organizations and the Guarantee Fund, the payment of which was granted a 25-year grace period in accordance with the decree No. 678 of the President of Azerbaijan dated March 31, 2001 "On approval of the agreement on the right to manage the "Azerbaijan Aluminum" Joint Stock Company", as well as the debts arising from the state debt and guarantee obligations;
- take necessary measures to terminate tax liability in accordance with the Tax Code of Azerbaijan;
- Resolve other issues arising from this decree.
According to the document, "Azerbaijan Aluminum" OJSC is being liquidated.
The Ministry of Finance must ensure the repayment of debts to non-state entities using the state budget or other financial sources, with the submission of relevant documents within one month.
The Azerbaijan Investment Holding must take necessary measures to resolve the issues outlined in this decree.
