Baku, Azerbaijan – In a significant development poised to reshape Azerbaijan's mining landscape and enhance Anglo Asian Mining's strategic trajectory, the company has officially appointed Worley Europe, a leading global engineering and project delivery firm, to undertake comprehensive feasibility studies for its key copper deposits at Xarxar and Garadag. This strategic alliance is a crucial step towards establishing direct on-site copper metal production within Azerbaijan, a move that would represent a historic first for the nation and a substantial value-add for Anglo Asian.

The announcement, made on June 22, 2026, details an ambitious roadmap focused on evaluating modern processing techniques, specifically copper heap leach processing coupled with solvent extraction-electrowinning (SX-EW), designed to yield finished copper metal rather than conventional concentrate exports. This approach promises to capture a greater share of the value chain domestically, streamlining logistics and reducing reliance on external smelters and refiners.

Strategic Partnership for Advanced Processing

Anglo Asian Mining's decision to partner with Worley Europe underscores the company's commitment to robust technical evaluation and de-risking its future copper operations. Worley, a globally recognized entity within the Worley Group, brings extensive experience in complex mining and metallurgical projects, making it a well-suited choice for these pivotal studies. The feasibility studies will meticulously assess the technical, economic, and environmental viability of implementing a full copper production process from mine to metal.

The proposed processing route – copper heap leach followed by SX-EW – is a well-established and efficient method for extracting copper from oxide or secondary sulphide ores, particularly when coupled with lower-grade deposits. Heap leaching involves piling crushed ore into heaps and percolating a solvent solution through them to dissolve the copper. The copper-rich solution (pregnant leach solution) is then fed into the SX-EW plant, where a solvent extraction process concentrates the copper, followed by electrowinning to produce high-purity copper cathodes. This integrated approach is often favored for its relatively lower capital and operating costs compared to traditional flotation and smelting for suitable ore bodies, alongside its environmental benefits in certain contexts. The adoption of this technology signifies Anglo Asian’s forward-thinking approach to leveraging proven, cost-effective methods for in-country value addition.

Detailed Timelines and Ambitious Drilling Campaigns

The timelines set for the completion of these critical studies reflect a methodical and aggressive development schedule. The feasibility study for the Xarxar deposit is slated for completion by mid-2027, while the Garadag deposit's study is targeted for the first half of 2028 (H1 2028). These staggered completion dates allow for optimized resource allocation and sequential progress on two significant assets.

Complementing these studies is an extensive drilling program planned for 2026 and 2027, encompassing approximately 90,000 meters in total. This substantial drilling effort is strategically divided:

  • 55,000 meters are dedicated to broader exploration activities across Anglo Asian's license areas.
  • 35,000 meters are specifically allocated to provide crucial support for the ongoing feasibility studies.

The feasibility study drilling campaign will focus intensely on both Xarxar and Garadag, with approximately 10,000 meters designated for Xarxar and a more extensive 25,000 meters planned for Garadag. This drilling is not merely about identifying more mineralized zones; it is multi-faceted, incorporating various forms of assessment vital for robust project engineering and financial modeling:

  • Geological infill drilling to update and enhance the confidence in existing mineral resource estimates.
  • Geotechnical drilling to gather data on ground conditions, crucial for mine design, pit slopes, and infrastructure placement.
  • Hydrogeological drilling to understand groundwater conditions, essential for dewatering strategies and environmental management.
  • Metallurgical drilling to obtain representative samples for further processing test work, validating the heap leach and SX-EW routes.
  • Condemnation drilling to confirm areas designated for infrastructure (plant sites, waste dumps) are devoid of valuable mineralization, preventing future operational conflicts.

Operational progress is already evident, with drilling having commenced at Xarxar using two rigs. Exploration efforts at Garadag are anticipated to kick off in the third quarter of 2026. Beyond these primary development focus areas, Anglo Asian is also continuing its broader exploration strategy, targeting extensions at Xarxar, Garadag, and their neighboring prospective regions. Furthermore, ongoing drilling activities include the established Gedabek contract area and potential extensions at the Demirli mine and Demirli South. Underground drilling is also underway at Gilar, designed to probe both upper and deeper strata of that specific deposit, underscoring the company's commitment to maximizing the potential of its diverse portfolio.

Pioneering In-Country Copper Metal Production in Azerbaijan

Perhaps the most compelling aspect of this initiative is its potential to trailblaze direct copper metal production within Azerbaijan. As noted in the announcement, this represents the first proposal for copper metal production directly within Azerbaijan by Anglo Asian or any other entity. Historically, mineral extraction in many developing mining jurisdictions has focused on exporting concentrates for processing abroad. While this generates export revenue, it often means foregoing the added value that comes from processing minerals into finished metals.

Producing copper metal on-site offers several strategic advantages:

  • Increased Economic Value: By processing to a finished product, Azerbaijan can capture more of the commodity's value domestically, contributing more significantly to the national GDP.
  • Reduced Logistics Costs: The cost and complexity of transporting bulk copper concentrate, often to distant international smelters, can be substantial. Producing metal locally significantly streamlines the supply chain.
  • Energy Security and Industrial Development: Establishing metal production facilities often stimulates local industry, creates skilled jobs, and can enhance a nation's energy independence by requiring sophisticated energy infrastructure.
  • Environmental Optimization: While mining inherently has an environmental footprint, localized processing can sometimes allow for more direct control over environmental standards and waste management compared to offshore processing.

This development positions Azerbaijan as a potentially more sophisticated player in the global metals market and aligns with broader trends towards resource nationalism and value addition within producing countries.

Anglo Asian's Vision: Becoming a Mid-Tier Producer

The appointment of Worley and the aggressive development schedule are integral to Anglo Asian Mining's overarching corporate strategy. Stephen Westhead, Vice-President of Anglo Asian Mining, articulated this vision stating: "Our licence areas still have significant potential for mineral discoveries. We are continuing our exploration programme, which has historically been very successful. The future road map for our transition to become a mid-tier, multi-asset copper and gold producer is clear, and these initiatives will ensure the continued growth of the company as we continue to deliver shareholder value."

This statement highlights a deliberate shift from being primarily a gold producer to a more diversified entity with substantial copper assets. The transition to a "mid-tier" producer signifies a move towards larger scale operations, increased production volumes, and enhanced market presence. For investors, this diversification strategy can reduce commodity price risk and offer multiple avenues for growth. The continued emphasis on exploration, which has historically yielded positive results for Anglo Asian, is crucial for sustaining this growth trajectory and unlocking further shareholder value. The company's portfolio in Azerbaijan, encompassing a mix of gold and copper deposits, positions it robustly in the current commodity cycle where copper demand is experiencing significant tailwinds.

The Broader Industry Context: Copper's Strategic Importance

The timing of Anglo Asian's intensified focus on copper is particularly pertinent given global market dynamics. Copper is fundamentally intertwined with the global energy transition, electrification, and urbanization trends foreseen in the coming decades. It is a critical component in renewable energy systems (solar panels, wind turbines), electric vehicles, charging infrastructure, and smart grids. Forecasts consistently point to significant supply deficits in the medium to long term, driven by robust demand and increasingly challenging new supply.

For mining industry professionals and investors, robust feasibility studies are the bedrock of successful project development. They provide the necessary technical and financial confidence to secure funding, obtain regulatory approvals, and make final investment decisions. A detailed study, like the one Worley is undertaking, meticulously evaluates every aspect of a project, from mineral reserves and resources to processing plant design, infrastructure requirements, operational costs, environmental impact, and financial returns. This de-risking process is essential in an industry characterized by high capital expenditures and long development cycles.

Outlook and Next Steps

Upon the successful completion of the feasibility studies for Xarxar by mid-2027 and Garadag by H1 2028, Anglo Asian Mining will be strategically positioned to make definitive investment decisions for these projects. Subsequent stages would typically involve securing project financing, detailed engineering design, procurement, construction, and ultimately, commissioning of the processing facilities. Each of these steps would propel Anglo Asian closer to its goal of becoming an established producer of finished copper metal.

The success of these endeavors could significantly elevate Anglo Asian's profile as a key player in the Eurasian mining sector and further solidify Azerbaijan's position as a burgeoning destination for mineral resource development. The initiatives outlined demonstrate a clear, forward-looking strategy that addresses both the immediate need for resource definition through substantial drilling and the long-term vision of value creation through advanced processing. The global mining community will undoubtedly be watching Anglo Asian's progress closely as it embarks on this transformative chapter.