Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) has provided an update on the construction of its second tailings dam in the Gedabek district of Azerbaijan.
The gold, copper and silver producer said the preferred site for the dam, located near its existing dam, has received the necessary land allocation from the government of Azerbaijan.
However, recent protests have raised concerns about the new dam's location and, in response, various government departments, with the assistance of independent laboratories, conducted environmental sampling in the area surrounding the existing tailings dam. The results did not indicate any contamination or higher incidence of disease in the neighboring population.
Anglo Asian has a long-standing commitment to strong community relations and has made significant social and economic contributions to the local area, which was historically impoverished with low employment levels.
The company said it was surprised by the sudden unrest over the dam's location and, in collaboration with the government, Anglo Asian has agreed to re-evaluate the technical and environmental aspects of the second tailings dam through an Environmental Study.
The Environmental Study will be conducted by an independent international consultancy under the Ministry of Ecology and Natural Resources. Local environmental engineers CQA International and independent tailings management consultants Knight Piésold will assist in the process.
The company is currently working with the government to finalise the protocol for the study, which is expected to be completed in the coming days. During this period, Anglo Asian plans to curtail operations that result in discharge into the existing tailings dam, primarily the flotation and agitation leaching plants.
Anglo Asian emphasised its commitment to full compliance with local laws and regulations, prioritizing the health, safety and well-being of its workforce and local stakeholders. The company said it adheres to global best practices and upholds international standards and guidelines, constructing and managing its tailings dams to ICMM standards, the industry benchmark for best practice.
The company has also received technical assurance that the current dam's wall can be raised, pending the usual approvals and the completion of the Environmental Study. This gives the company confidence in having sufficient tailings capacity while the second dam is being constructed.
The company said it will provide updates on the progress and further developments regarding the re-evaluation of the dam's location and technical aspects as appropriate.