Anglo Asian Mining Plc (LSE:AAZ, OTC:AGXKF) has started production at its Demirli copper mine in the Karabakh Economic Region of Azerbaijan, marking the second new mine to enter production for the group this year.
The move underpins the company's strategy to become a multi-asset, mid-tier copper producer.
Commissioning at Demirli is underway, with output expected to increase gradually until the end of the year.
The company forecasts production of about 4,000 tonnes of copper in concentrate for 2025, rising to around 15,000 tonnes a year from 2026 onwards.
The total life of the mine will be established as further geological work is completed.
Ore is being extracted from a large open pit and transported by truck to a nearby flotation plant, which separates copper minerals from the rock.
Power is being supplied from Azerbaijan’s national electricity grid, while water is sourced locally and from regional supplies.
Tailings, the waste material left after processing, are currently stored in an existing dam, with plans in place for a new dam as part of a wider geotechnical and environmental management programme.
A full environmental and social impact assessment has already been completed for Demirli, following earlier environmental studies.
Anglo Asian recently received its first independent sustainability rating from Digbee Limited, reflecting its focus on environmental, social and governance standards in mining.
Roughly 150 new full-time staff have been hired to run the mine and processing plant, supported by about 50 experienced employees transferred from the company’s other operations to support the ramp-up.
Contractors are also working on site, overseen by Anglo Asian’s technical and administrative teams.
Chief executive Reza Vaziri said: “Production from Demirli is a significant step in the company transitioning into a multi-asset, mid-tier mining company focused in Azerbaijan."
There is further potential for additional mineral resources at Demirli, with known extensions to the current pit area and other nearby copper targets identified for future exploration.
A regional exploration programme is planned to assess these opportunities.