Anglo Asian Mining PLC (LON:AAZ) has updated investors on the status of three restored contract areas located in Nagorno Karabakh and other formerly occupied territories following the end of a military conflict over the enclave between Armenia and Azerbaijan.
The AIM-listed gold, copper and silver producer said three contract areas have been restored, Soutely in the Kalbajar district and Vejnaly in the Zangilan district of the formerly occupied territories, and Kyzlbulag in Nagorno Karabakh. Kalbajar and Zangilan are currently under the control of the government of Azerbaijan, while Russian peacekeepers are present at the Kyzlbulag site.
READ: Anglo Asian makes new copper discovery at Zafer
Anglo Asian said it will fully evaluate the potential of the three restored areas when permission to access is received by the Azerbaijani government, with a production sharing agreement in respect of the areas to “reset” to year zero upon notification of access.
While the company said illegal mineral exploration had been carried out in all three areas during their occupation by Armenia, it said “very considerable exploration potential” exists both near the existing mines and on known geological trends within the areas.
The group added that as part of a proposed ceasefire agreement it has been proposed that Armenia will grant territory in its Syunik region to Azerbaijan to allow construction of direct road and rail links between the exclave of Nakhchivan and the rest of Azerbaijan, which the company said will “greatly improve” access to its Ordubad contract area.
"It is a tragedy that this long-standing territorial dispute has resulted in a humanitarian crisis and significant loss of life. Anglo Asian Mining very warmly welcomes the recent ceasefire agreement which ended the hostilities. The conflict has resulted in extensive damage across the region which will require substantial investment to repair and rebuild. Anglo Asian Mining will work with the Government of Azerbaijan, pursuant to its contractual rights, in the three restored contract areas within the Zangilan and Kalbajar districts as well as in Nagorno Karabakh”, Anglo Asian’s president and chief executive Reza Vaziri said in a statement.
“The company will properly manage and invest in the mineral resources of the region to the benefit of the local communities and other stakeholders. Anglo Asian Mining has been a model of sustainable and sound mining practices at its current operations while working with, and investing in, the local communities. The company intends to bring that commitment to high-quality development to its restored contract areas in the regions internationally recognised as part of Azerbaijan and which have now been returned to Azerbaijan, following the declaration by the Governments of Armenia and Azerbaijan and cessation of hostilities", the CEO added.
Shares in the firm rose 3.5% to 134.5p in early deals on Thursday.