Control Over Key Deposits Transforms Export Profile
Azerbaijan has recorded a sharp rise in copper ore and concentrate shipments following the recovery of territories that include major mining sites. Data from the State Customs Committee show exports climbing from 8200 tonnes to 62000 tonnes in the first half of 2026. The value of those shipments rose from 12.3 million dollars to 135.9 million dollars. Copper now accounts for more than 7 percent of non-oil exports, compared with less than 1 percent the previous year.
The change stems largely from the Demirli open-pit mine in the Agdara district. Anglo Asian Mining, the British operator holding the contract, restarted full-scale work once security conditions allowed access. Production at the site helped lift company-wide copper output from 1188 tonnes to 8840 tonnes in the same six-month period.
Background To The Mining Rights
Anglo Asian Mining secured production-sharing agreements with Azerbaijan in the late 1990s. Several contract areas lay in territory that remained outside government control until 2020. After the 44-day conflict ended, the company gained practical access to Demirli and adjacent prospects. Earlier operations at the same locations had been conducted without authorisation by entities linked to Armenian interests.
Official records indicate that between 2009 and 2017 those unauthorised activities generated roughly 302 million manats in revenue for the operators involved. Azerbaijan has pursued compensation claims through international channels for the extracted resources and environmental damage.
Global Market Context For Copper
Copper serves as a critical input for power transmission, electric vehicles, renewable energy installations and battery storage. The International Energy Agency projects that worldwide demand will grow by about one third by 2040. Recent price movements on major exchanges reflect supply constraints and policy measures such as proposed tariffs on imports into the United States.
Azerbaijan benefits from this environment because its newly accessible deposits align with rising industrial needs. Europe remains the primary destination for concentrates, with additional shipments directed to Uzbekistan and China in recent years.
Operational Details At Demirli
The Demirli flotation plant processes up to 5.6 million tonnes of ore annually. Remaining reserves are expected to support exports of 85000 tonnes of copper concentrate to China between 2025 and 2030, valued at approximately 1.6 billion manats. Additional exploration has identified potential for further resource expansion at the site.
President Ilham Aliyev visited the complex in January 2023, underscoring its status as the first industrial mining project launched in the liberated districts. The facility operates under a subsidiary of Anglo Asian Mining in partnership with AzerGold.
Expansion Plans And Drilling Programme
Anglo Asian Mining has contracted Worley Europe to evaluate heap-leach and solvent-extraction options at the Xarxar and Garadagh deposits. These studies aim to enable on-site production of refined copper rather than concentrate only. Completion is scheduled for 2027 and 2028 respectively.
A 90000-metre drilling campaign runs through 2027. It combines exploration metres with feasibility work to update resource estimates and support mine design. Underground drilling has also begun at the Gilar prospect within the existing Gadabay contract area.
Previous Unauthorised Extraction And Legal Steps
During the period of occupation, several foreign and local companies extracted minerals from sites now under Azerbaijani administration. Listed entities include Base Metals, Vallex Group subsidiaries, and others operating gold and copper-molybdenum projects. Azerbaijan has documented satellite evidence of intensified activity and has sought international arbitration to recover losses.
Environmental monitoring conducted after the 2020 ceasefire revealed pollution of waterways from tailings at some locations. Current operators must meet national standards for waste management and site rehabilitation.
Strategic Role In Non-Oil Sector Growth
Copper has moved from a marginal export item to a meaningful contributor within a short period. State Statistics Committee figures confirm a 7.1-fold increase in concentrate output during the first quarter of 2026. Government agencies and private partners continue to assess additional deposits in the Balakan-Zagatala, Gadabay and Ordubad regions.
Longer-term ambitions include construction of a domestic smelter once annual concentrate volumes approach 100000 tonnes. Such a facility would allow export of higher-value refined metal and copper products.
Key Points
- Copper ore exports rose 7.5 times in volume and 11 times in value during the first half of 2026.
- The Demirli mine accounts for the majority of the increase after operations resumed under Anglo Asian Mining.
- Global demand for copper is forecast to rise by roughly one third by 2040 due to energy transition needs.
- Exploration and feasibility work continues at Xarxar, Garadagh and other sites to enlarge the resource base.
- Azerbaijan seeks compensation through legal channels for minerals extracted without authorisation during the occupation period.
