AİH portfolio companies to contribute to a new phase of development in the mining and metallurgical industries

At a meeting chaired by the President of the Republic of Azerbaijan Ilham Aliyev dedicated to the “State Program on the Development of Mining (Metal Ores) and Metallurgical Industry in the Republic of Azerbaijan for 2027–2030.”, the program’s key objectives, investment priorities and implementation mechanisms were presented. Within the framework of the State Program, portfolio companies of Azerbaijan Investment Holding (AİH) will be involved in the implementation of aluminium and other metallurgical projects.

The main objective of the State Program is to promote more efficient use of Azerbaijan’s mineral resources, accelerate the transition from raw material extraction to processing and manufacturing activities that generate higher added value, expand domestic value chains and create new industrial opportunities.

AZN 5.3 billion investment program

Under the State Program, the contribution of the mining and metallurgical sectors to gross domestic product (GDP) is expected to increase from AZN 700 million to AZN 1.8 billion by 2030, while annual export potential is projected to rise from AZN 1.3 billion to AZN 3.4 billion.

A total of AZN 5.3 billion in investments is planned for the implementation of the program over 2027–2030. Of this amount, AZN 1.1 billion is expected to come from the state budget, AZN 2.2 billion from state-owned enterprises, including debt financing, and AZN 2 billion from private sources, including debt financing. Accordingly, approximately 80% of total investment is expected to be financed through non-budgetary sources.

The establishment of new production capacities under the program is expected to create more than 5,000 permanent jobs in the sector, stimulate economic activity in the regions and accelerate the development of the non-oil industrial sector.

The role of AİH and its portfolio companies

The State Program assigns AİH the role of participating in the implementation of aluminium and other metallurgical projects through its portfolio companies.

In this context, Azəralüminium LLC, one of AİH’s portfolio companies, is expected to pursue new opportunities to expand its existing production chain, increase production capacity and transition towards higher value-added products.

In line with the program’s objectives, Azəralüminium LLC’s annual electrolysis production capacity is planned to increase from 50,000 tonnes to 100,000 tonnes, while rolled aluminium product capacity is expected to rise from 20,000 tonnes to 50,000 tonnes. Plans also include the construction of a calcination and anode baking plant and the establishment of carbon anode block production.

Further exploration of the Zaylik alunite deposits and assessment of the economic potential of additional raw material resources are also among the program’s key priorities.

As a result of these projects, Azəralüminium LLC’s exports are projected to increase from AZN 252 million in 2025 to AZN 510 million by 2030.

Another AİH portfolio company, AzerGold CJSC, will be one of the key participants in the development of gold, copper, iron ore and other mineral resource projects under the State Program.

The company’s strategic projects include Soyudlu, Ortakend, Filizchay and Dashkasan.

The total investment required for these projects is estimated at approximately AZN 3.63 billion, with only around 10% of the investment planned to be financed from the state budget.

Initial production at the Soyudlu gold deposit is scheduled to commence in 2028, followed by the Ortakend deposit in 2029. Gold resources have been estimated at approximately 1.03 million ounces at Soyudlu and 246,000 ounces at Ortakend.

The Filizchay polymetallic deposit is scheduled to reach full production capacity by the end of 2031. Over the deposit’s 34-year operating life, the project envisages bringing 363,000 tonnes of copper, 2.7 million tonnes of zinc and 1 million tonnes of lead resources into production.

Under the Dashkasan iron ore project, initial production is planned to commence in 2030, with an annual production capacity of 2 million tonnes of hot briquetted iron to be established.

Expanding the value chain from raw materials to finished products

One of the core principles of the State Program is to establish value chains within the country to the greatest extent possible, encompassing the entire process from geological exploration and extraction to beneficiation, processing, semi-finished products and finished goods.

Within this framework, the activities of AİH’s portfolio companies will focus on establishing new production capacities, expanding existing industrial capabilities and accelerating the transition towards products that generate higher added value.

The expansion of the aluminium production and processing chain at Azəralüminium LLC, alongside the development of gold, copper, polymetallic and iron ore projects by AzerGold CJSC, will contribute to strengthening the industrial and export potential of the country’s mineral resource base.

In addition to creating new production capacities, these initiatives are expected to increase demand for transport and logistics services, local contractors and suppliers, as well as skilled professionals.

Enhancing investment and economic value

The implementation of the State Program is expected to significantly increase value added and export opportunities in the mining and metallurgical sectors, foster the development of new industrial value chains and create additional opportunities for private investment.

Through its portfolio companies, AİH will contribute to mobilising investment, expanding existing production potential and implementing projects that generate long-term economic value.

On 23 September 2026, the State Program on the Development of the Mining (Metal Ores) and Metallurgical Industries in the Republic of Azerbaijan for 2027–2030 was approved by an Order of the President of the Republic of Azerbaijan, Ilham Aliyev.

The implementation of the State Program will lay the foundation for a new phase in transforming Azerbaijan’s mineral resources into higher value-added products, increasing non-oil exports and strengthening the country’s industrial potential.