Dashkasan iron ore project valued at 24 billion manats

The economic value of the Dashkasan iron ore project is estimated at 24 billion manats ($14.12 billion), while the required investment amounts to 1.95 billion manats ($1.15 billion), AzerGold CJSC Chairman Zakir Ibrahimov said.

According to Report, Ibrahimov made the remarks at a press conference today.

He said initial production under the Dashkasan iron ore project is planned for 2030.

The project, which will include mining, beneficiation, a pipeline, pellet production and a hot-briquetted iron (HBI) plant, is expected to produce 40 million tons of HBI over a 20-year operating period.

Financing will be provided through the state budget, borrowed funds and investor participation.

Under the project, ore extracted from the Dashkasan mine will first be processed into concentrate at a beneficiation plant to be built at the mine site.

The concentrate will then be transported to a planned pellet plant in the Shamkir district. For this purpose, Azerbaijan plans to build its first slurry pipeline, with a length of more than 40 kilometers.

At the final stage of the production chain, the pellets will be processed into HBI, one of the key raw materials used in steel production.

Ibrahimov said the plant, with annual production capacity of 2 million tons, will be built in the part of the Western Industrial Park located in the Shamkir district.

He noted that the project would create a sustainable raw-material base for high-quality steel production in Azerbaijan.

According to Ibrahimov, annual output of 2 million tons will meet domestic demand, while surplus production will be exported, helping reduce import dependence, expand export potential, develop the non-oil sector and generate additional state budget revenues.