Azerbaijan Plans Major Expansion of Mining and Metallurgical Industries Under 2027–2030 State Programme

Azerbaijan is preparing an ambitious State Programme covering 2027–2030 for the development of its mining and metallurgical industries under the leadership of President Ilham Aliyev, with a focus on regional development, industrial growth and economic diversification.

The programme is expected to complement the state strategy for the socio-economic development of the regions. As part of the initiative, plans are underway to begin the exploitation of gold, copper and molybdenum deposits in Kalbajar, Aghdara and Zangilan. Geological exploration activities in the Nakhchivan Autonomous Republic are also scheduled to begin next year.

The planned activities will be implemented both through the state-owned company AzerGold and with the participation of private-sector investors.

Preparatory work for the development of the Filizchay polymetallic deposit in Balakan district, considered one of the most promising deposits in Europe, is also nearing completion.

In addition, President Ilham Aliyev has signed an order concerning the establishment of the Western Industrial Park. One of the park’s main objectives will be to promote the mining industry, facilitate the development of the Dashkasan ore deposit and support other industrial projects in surrounding areas.

The president has also issued instructions to establish a complete production chain in the mining sector, extending from the extraction of raw materials to the manufacture of finished products.

The initiative is intended not only to extract natural resources but also to process them domestically, generate greater added value and expand the production of finished goods. Increasing aluminium production to 100,000 tonnes by 2030 is among the targets set under the broader industrial development agenda.

The implementation of these projects could provide significant momentum to Azerbaijan’s non-oil economy. The expansion of the mining and metallurgical sectors is expected to increase the share of the non-energy sector in exports, raise sector-related revenues and broaden the country’s export opportunities.

Domestic processing of raw materials into products with higher added value is considered particularly important for diversifying Azerbaijan’s export structure and strengthening its industrial base.

Attracting foreign investment is another major priority. The development of new deposits, establishment of processing facilities and expansion of industrial infrastructure could create new opportunities for both domestic and international investors.

Such investment may contribute to technology transfer, the introduction of modern management practices and improved competitiveness across the industrial sector.

The geographical scope of the projects — covering areas such as Kalbajar, Aghdara, Zangilan, Balakan, Dashkasan and Nakhchivan — is also expected to support increased economic activity in different regions.

In the territories liberated from occupation, the establishment of new industrial enterprises and production chains could support employment, encourage the growth of local businesses and enable more effective use of regional economic potential.

Initial assessments indicate that the projects could create more than 5,000 new jobs. Additional employment opportunities may also emerge in related sectors, including logistics, transport, construction, services and other industries.

The expansion of the mining sector could also increase state budget revenues. The operation of new enterprises may lead to higher tax receipts, increased export earnings and broader economic activity.

According to preliminary estimates, the projects could generate a positive annual financial impact of more than 1 billion Azerbaijani manats. Increased state revenues could, in turn, create additional opportunities for implementing new social programmes.

The development of the mining and metallurgical industries should therefore not be viewed solely as the exploitation of new mineral deposits. It could also create opportunities to diversify Azerbaijan’s economy, strengthen the non-oil and non-energy sectors, increase export capacity, attract investment and stimulate economic activity across the regions.

At the same time, environmental protection must remain a fundamental priority alongside economic development.

As President Ilham Aliyev has emphasised, Azerbaijan’s greatest wealth is its natural environment. Accordingly, high-quality environmental assessments, the use of modern technologies and strict compliance with environmental regulations and standards will be essential to ensuring the long-term and sustainable development of the mining and metallurgical industries.