Azerbaijan Copper Exports Surge as Demirli Mine Drives Growth Beyond Oil

Copper Shipments Reach $135.9 Million

Azerbaijan exported 62,000 tonnes of copper ore and concentrate in the first half of 2026, up from 8,200 tonnes in the same period a year earlier, according to State Customs Committee figures. The value of those shipments climbed from $12.3 million to $135.9 million, making copper a much larger contributor to exports outside the oil sector.

Copper now accounts for more than 7 percent of Azerbaijan's non-oil exports, compared with less than 1 percent the previous year. Export volume rose about 7.5 times, while export value increased about 11 times. The faster rise in value means the country's copper trade expanded more sharply in financial terms than in the weight of material shipped.

The main driver is the Demirli open-pit mine in the Agdara district, where access to a major deposit has allowed British operator Anglo Asian Mining to restart full production. The development connects Azerbaijan's recovery of territories containing mineral resources with a rapid change in its export profile.

Demirli Drives the Production Increase

Anglo Asian Mining holds the contract for Demirli and resumed full operations once security conditions allowed access. Production at the site helped raise the company's copper output from 1,188 tonnes to 8,840 tonnes during the same six months.

The company figures describe copper output, while the customs figures cover shipments of ore and concentrate. Ore is material extracted from a deposit; concentrate is material processed to increase its copper content. Keeping those categories separate helps explain why the export tonnage is much larger than the company's copper production figure.

Demirli accounts for the majority of the export increase. Its restart has brought a major mining site into active production under the current contract arrangements, giving Azerbaijan a larger source of copper shipments at a time of growing industrial demand.

How Access to Mining Rights Changed

Anglo Asian Mining secured production-sharing agreements with Azerbaijan in the late 1990s. Several areas covered by those agreements remained outside government control until 2020, leaving a gap between the company's contractual rights and its practical ability to work at the deposits.

After the conflict lasting 44 days ended in 2020, the company gained practical access to Demirli and neighbouring prospects. Earlier operations at the same locations had been carried out without Azerbaijani authorisation by entities linked to Armenian interests.

The development of the mining operation spans several years, from the original agreements to the latest production and export figures:

• Late 1990s: Anglo Asian Mining secured production-sharing agreements covering several contract areas in Azerbaijan.
• 2009 to 2017: Official records attribute roughly 302 million manats in revenue to unauthorised extraction by the operators involved.
• 2020: The end of the conflict lasting 44 days opened practical access to Demirli and adjacent prospects.
• January 2023: President Ilham Aliyev visited the Demirli complex.
• First half of 2026: Copper ore and concentrate exports reached 62,000 tonnes, worth $135.9 million.
• Through 2027: Anglo Asian Mining's drilling programme is scheduled to continue, alongside studies planned for completion in 2027 and 2028.

Past Extraction and Compensation Claims

Azerbaijan has pursued compensation through international channels for resources extracted without authorisation and for environmental damage. Official records place revenue from the unauthorised activities between 2009 and 2017 at roughly 302 million manats.

Companies identified as having extracted minerals during the period of occupation include Base Metals, Vallex Group subsidiaries and other foreign and local businesses operating gold and copper-molybdenum projects. Azerbaijan has documented satellite evidence of intensified mining activity and has sought international arbitration to recover losses.

Environmental monitoring after the 2020 ceasefire revealed pollution of waterways from tailings at some locations. Tailings are material left after ore processing, making their management part of the environmental responsibilities associated with mining. Current operators must meet national standards for waste management and rehabilitation of mining sites.

Demirli's Plant and Planned China Exports

The Demirli flotation plant can process up to 5.6 million tonnes of ore annually. Flotation separates copper-bearing material from the ore to produce concentrate, the product that features prominently in Azerbaijan's expanding shipments.

Remaining reserves are expected to support exports of 85,000 tonnes of copper concentrate to China between 2025 and 2030, valued at approximately 1.6 billion manats. That volume covers the stated period, while the plant's processing capacity is expressed as an annual figure.

Additional exploration has identified potential to expand the resource base at Demirli. The mine's future output therefore depends both on the reserves already identified and on the results of further exploration.

President Ilham Aliyev's visit in January 2023 underscored the complex's position as the first industrial mining project launched in the liberated districts. The facility operates through a subsidiary of Anglo Asian Mining in partnership with AzerGold.

Global Demand Supports Azerbaijan's Expansion

Copper is used in power transmission, electric vehicles, renewable energy installations and battery storage. Those uses connect demand for the metal to investment in electricity networks, transport and energy systems.

The International Energy Agency projects that worldwide copper demand will grow by about one third by 2040. Azerbaijan's newly accessible deposits place it in a position to supply some of that growing industrial need.

Recent price movements on major exchanges also reflect constraints on supply and policy measures, including proposed tariffs on imports into the United States. The market setting combines rising demand with limits on how much copper can be supplied and changes in the rules governing trade.

Europe remains the primary destination for Azerbaijan's copper concentrates. Additional shipments have gone to Uzbekistan and China in recent years, while the expected Demirli exports to China form part of the mine's plans for 2025 through 2030.

Studies Aim to Produce Refined Copper

Anglo Asian Mining has contracted Worley Europe to evaluate heap-leach and solvent-extraction options at the Xarxar and Garadagh deposits. The studies aim to enable production of refined copper at the sites, extending activity beyond the production of concentrate alone.

Heap leaching involves extracting metal from ore using a solution, while solvent extraction separates the metal from that solution. The proposed work examines whether these processing options can support the company's plans at the two deposits.

Completion of the studies is scheduled for 2027 at Xarxar and 2028 at Garadagh. Those dates concern the evaluation work; no date was given for the start of refined copper production or for construction of a domestic smelter.

Drilling Extends Across the Resource Base

A drilling campaign covering 90,000 metres runs through 2027. Anglo Asian Mining is combining exploration drilling with feasibility work intended to update estimates of its resources and support mine design.

Exploration examines where additional mineral resources may be found. Feasibility work uses information about a deposit to assess how a mining project could be developed. Combining the two gives the company information for both identifying resources and planning their extraction.

Underground drilling has also begun at the Gilar prospect within the existing Gadabay contract area. The programme extends the company's development work beyond Demirli, alongside the processing studies at Xarxar and Garadagh.

Government agencies and private partners continue to assess additional deposits in the Balakan-Zagatala, Gadabay and Ordubad regions. These assessments form part of the broader effort to enlarge Azerbaijan's mineral resource base.

Copper Takes a Larger Place Beyond Oil

State Statistics Committee figures show a 7.1-fold increase in concentrate output during the first quarter of 2026. Together with the customs figures for the first half, the production data show how quickly copper has moved from a marginal export item to a meaningful contributor outside the oil sector.

Azerbaijan's longer term ambitions include building a domestic smelter once annual concentrate volumes approach 100,000 tonnes. Such a facility would allow the country to export refined metal and copper products with higher value, rather than relying on concentrate shipments alone.

Demirli provides the main production boost today. Further drilling, processing studies and assessments of other deposits are intended to broaden that base, while waste management and rehabilitation requirements remain part of the responsibilities of current operators.

Key Points

• Copper ore and concentrate exports reached 62,000 tonnes and $135.9 million in the first half of 2026, about 7.5 times the previous volume and 11 times the value.
• Copper now represents more than 7 percent of non-oil exports, up from less than 1 percent.
• Demirli drove most of the increase, helping Anglo Asian Mining raise copper output from 1,188 tonnes to 8,840 tonnes.
• Demirli's reserves are expected to support 85,000 tonnes of concentrate exports to China between 2025 and 2030.
• Global copper demand is projected to grow by about one third by 2040.
• Drilling continues through 2027, with processing studies scheduled for completion in 2027 and 2028.
• Azerbaijan is pursuing compensation for unauthorised extraction and environmental damage.