Azerbaijan 2012 | INDUSTRY & MINING | INTERVIEW
TBY talks to Reza Vaziri, President and CEO of Anglo Asian Mining, on prospects for mineral resources producers in Azerbaijan.
Reza Vaziri holds a Law Degree from the National University of Iran, and prior to beginning a business career in caviar and fine foods, he held a number of high-ranking positions in the pre-revolutionary Iranian government. He is currently President and CEO of Anglo-Asian Mining, and has been an active member of the business community in Azerbaijan since its independence.
How has 2011 been for the company?
We had a very productive and successful year in 2010. We produced over 67,000 ounces of gold. In 2011 our production output was around 60,000 ounces because we were affected by very severe weather conditions in Gedabek, which is a surface mine. Basically, Gedabek is a copper mine with lots of gold in it. The separation of these two elements is a real challenge. Gedabek is the only mining property in the world that has two plants: SART and ADR. The former plant is being showcased as the best way to separate both elements. Our company has started the process of building a new agitation leaching plant, with an investment of around $60 million, and we very much hope to see the plant operational by the end of 2012. It will allow us to extend the life of the mine and improve the recovery rate for gold and other materials. We are planning to have two production lines for sulfate ore and high-grade ore. The average recovery rate from an agitation plant should be 90%.
With production expected from the Gosha mine by the end of 2012, what level of impact are you expecting from these operations?
In 2011 we discovered and submitted the notes of discovery to the government for another of our properties, the Gosha mine. It is located at the top of a mountain, and this makes our job difficult. We estimate that there are 300,000 ounces in just one zone of the 13 the site has. These other areas are currently being explored, as we are talking about an underground mine. We are planning to put into operation a small processing plant to produce somewhere between 15,000 and 20,000 ounces of concentrated gold annually. Later on we will decide whether to sell the gold concentrate itself or bring it back together and put it in the agitation plant. Adding Gosha's production to our overall operations, we will reach over 100,000 ounces a year, which will enable us to upgrade the status of the company from a junior mining company to a mid-size mining company.
What is the status of the Ordubad project?
This is another property in our current portfolio, and the initial exploration works were not successful. We will be emphasizing our exploration activities in the Agyurt area, one of our more promising sites, as we need to come up with a discovery by April 2012, otherwise we may lose the right to this mine. If we submit positive exploration results, we will be given the right to mine for the next 20 years.
How would you assess Anglo Asian Mining's contribution to the realization of Azerbaijan's full mining potential?
Azerbaijan never had a mining industry, and as a result we did not have mining experts. We have created them. We have created a skilled team that can operate in any type of mine anywhere in the world. We have trained our team from different perspectives, such as in processing, geology, mining, engineering, and the environment. Anglo Asian Mining has created jobs, directly and indirectly, for over 1,000 people in rural Azerbaijan, where we have changed the economic environment. We have also developed community projects repairing roads and even building a whole new school for 400 students. We are partners with the government, which owns 51% of production after the deduction of capital and operational expenses, and so far we have given to the government of Azerbaijan close to $30 million in gold, which in my opinion would represent around 17,000 ounces.
How do you see the processing prospects of Azerbaijan in the extractive industries sector, and what business opportunities are there for local and foreign investors?
Azerbaijan has an extremely high potential for mining. We have been pioneers in gold mining, but there are many other sites in Azerbaijan offering opportunities that have not been touched but contain deposits of metals, polymetals, copper, and probably zinc. We are in talks with the government in order to expand our segments of activity in the country, and I am sure there are plenty of other companies in Azerbaijan that have either obtained concessions or are looking into it. Overall, I am convinced that the industry offers plenty of opportunities for both local and foreign investors.
Song of Change
Azerbaijan continued on its path to diversification in 2011, with the non-prime sectors demonstrating their ability to support the economy for the first time. With nominal GDP reaching $55 billion in 2011, Azerbaijan represents some 83% of the South Caucasus economy. Regional interconnectivity is also developing, with major infrastructure projects to upgrade Azerbaijan's air and maritime facilitates set to make the country a key point on the resurgent Silk Road. The Baku-Tbilisi-Kars railway is also nearing completion, and negotiations over the best export route for Azerbaijani gas to Europe seem to be coming to a conclusion. In a year when Azerbaijan hosts the Eurovision Song Contest and also becomes a non-permanent member of the UN Security Council, the government is looking to showcase the Caspian nation's achievements to the world.
Eyes on Me
In a year defined by an increased foreign relations presence and growing regional economic power, 2012 marks Azerbaijan's coming of age.
HE Ilham Aliyev, President, the Republic of Azerbaijan
Ilham Aliyev, President of the Republic of Azerbaijan, on his goal to double national GDP and the growing role of the country in international affairs.
Mehriban Aliyeva, First Lady, Azerbaijan
TBY talks to Mehriban Aliyeva, First Lady of Azerbaijan, on the Heydar Aliyev Foundation, economic growth, and the importance of charity work.
HE Elmar Mammadyarov, Minister of Foreign Affairs, Azerbaijan
TBY talks to Elmar Mammadyarov, Minister of Foreign Affairs, on Azerbaijan's seat on the UN Security Council, its role in regional cooperation, and relations with Turkey and NATO.
Colonel-General Kamaladdin Heydarov, Minister of Emergency Situations, Azerbaijan
TBY talks to Colonel-General Kamaladdin Heydarov, Minister of Emergency Situations, on key reforms, flood control, and international cooperation.
Focus: Regional Affairs
A Growing Voice
As the leading economic powerhouse in the South Caucasus, Azerbaijan is working toward the consolidation of regional cooperation and political stability.
Giorgio Napolitano, President, Italy
Giorgio Napolitano, President of Italy, on the strength of Azerbaijani-Italian relations and the depth of trading ties.
Heinz Fischer, President, Austria
TBY talks to Dr. Heinz Fischer, the President of Austria, on the development of Austrian-Azerbaijani relations in terms of business, trade, and culture.
Catherine Ashton, High Representative for Foreign Affairs and Security Policy, the EU
Catherine Ashton, European Union High Representative for Foreign Affairs and Security Policy, on building a relationship between the EU and Azerbaijan.
Agshin Mehdiyev, Ambassador, the Permanent Mission of Azerbaijan to the UN
Agshin Mehdiyev, Ambassador for the Permanent Mission of Azerbaijan to the UN, on the significance of the country's election as a non-permanent member of the UN Security Council.
Focus: Nagorno-Karabakh
In Search of Solutions
A settlement to the Nagorno-Karabakh saga has remained elusive, but with increasing international attention, hopes for a solution are high on the Azerbaijani side.
Pádraig Murphy, Special Representative of the OSCE Chairperson-in-Office , the South Caucasus
Ambassador Pádraig Murphy, Special Representative of the OSCE Chairperson-in-Office for the South Caucasus, on conflict resolution, formulating agreements, and building trust.
Over the past two decades of independence, Azerbaijan has sought to leverage its hydrocarbon wealth to create a regional economic powerhouse.
HE Shahin Mustafayev, Minister of Economic Development, the Republic of Azerbaijan
TBY talks to Shahin Mustafayev, Minister of Economic Development, on GDP growth, FDI, and the country's role as a transport and energy hub.
TBY talks to Shahmar Movsumov, Executive Director of the State Oil Fund of Azerbaijan (SOFAZ), on the investment program, the size of funds under management, and new asset flows.
Adil A. Mammadov, President, AZPROMO
TBY talks to Adil A. Mammadov, President of AZPROMO, on the country's legal trade and investment framework, the import-export profile, and FDI in the non-oil sectors.
Farid Asadov, CEO, Delta Group
TBY talks to Farid Asadov, Chairman of the Executive Board at AtaHolding, on the banking industry, changes to insurance laws, and the hospitality segment.
Joseph M. Owen, Country Manager for Azerbaijan, World Bank
Joseph M. Owen, World Bank Country Manager for Azerbaijan, on the Bank's relationship with Azerbaijan and its development assistance programs.
Focus: Regional Trade
Commerce Khan Work
Driven by swelling oil and gas profits, Azerbaijan has cemented its position as a leading economic powerhouse in the South Caucasus region while maintaining a low level of public foreign debt and significant export trade surplus.
TBY talks to Fawaz Al-Issa, Vice-Chairman and CEO of Turkapital, on its investment activities in Turkey and Azerbaijan.
Azer Mursagulov, Advisor to the Executive Director, IMF
Azer Mursagulov, Advisor to the Executive Director at the IMF, on Azerbaijan's economic achievements and goals for the future.
On the Banks of the Caspian
Having proven its resiliency through the crisis, Azerbaijan's banking system continues to mature, with consistently improving indicators and an increasingly sophisticated regulatory regime.
Elman Rustamov, Governor, Central Bank of Azerbaijan
TBY talks to Elman Rustamov, Governor of the Central Bank of Azerbaijan Republic, on monetary and financial policy.
Jahangir Hajiyev, Chairman, International Bank of Azerbaijan
TBY talks to Jahangir Hajiyev, Chairman of the Board at the International Bank of Azerbaijan, on its focus on retail banking, plans for international cooperation, and the development of Islamic finance.
B2B: Up & Comers
As Azerbaijan begins to outshine its neighbors in terms of financial stability and banking infrastructure, local banks are looking to flex their muscles overseas.
Elmar M. Mammadov, Chairman of the Management Board, Kapital Bank
TBY talks to Elmar M. Mammadov, Chairman of the Management Board at Kapital Bank, on results from 2011, the payment card market, and regulatory reforms.
Focus: Microfinance
From Little Loans
With SMEs topping the development agenda, the microfinance sector is experiencing solid growth.
Vox Populi: Local Banking
Growth For All
Local banks are pulling out the big guns as they grow their networks throughout the regions of Azerbaijan and take on more foreign business.
With volumes and transactions sizes on the up and up, the BSE is looking to develop itself as a key part of the national economic diversification strategy.
Emin Aliyev, Chairman of the Board, Baku Stock Exchange
TBY talks to Emin Aliyev, Chairman of the Board at Baku Stock Exchange, on the development of key indicators, the local capital markets, and FDI.
Thanks to sweeping regulatory changes, new levels of efficiency and competition, and growing awareness among the population, Azerbaijan's insurance sector is on the brink of a new era.
Ruslan Aliyev, President, Ateshgah Group of Companies
TBY talks to Ruslan Aliyev, President of Ateshgah Group of Companies, on the impact of compulsory lines and his company's celebrity insurance activities.
B2B: Insurance
The Compulsory Flipside
TBY talks to executives from two insurance firms on how compulsory lines are changing the sector.
New discoveries and infrastructure are set to ramp up the country's output of oil and gas products as profits swell and Europe looks on.
TBY talks to Natiq Aliyev, Minister of Industry and Energy, on the Trans-Anatolian Pipeline, oil and gas revenues, and renewables.
Rovnag Abdullayev, President, State Oil Company of Azerbaijan Republic
TBY talks to Rovnag Abdullayev, President of the State Oil Company of Azerbaijan Republic (SOCAR), on Azerbaijan as a key international oil player, the pipeline race, and the Southern Gas Corridor.
Rashid Javanshir, Regional President, Azerbaijan, Georgia, Turkey, BP
TBY talks to Rashid Javanshir, Regional President for Azerbaijan, Georgia, and Turkey at BP, on progress in the oil and gas sector, the Shafag-Asiman exploration project, and the ACG and Shah Deniz fields.
Focus: The Pipeline Race
As Azerbaijan rushes to supply natural gas to Europe, new agreements with Turkey could accelerate the race.
Huseynaga Ragimov, General Director, Azpetrol
TBY talks to Huseynaga Ragimov, General Director of Azpetrol, on the retail fuel business, regional development, and tourism sector opportunities.
Forum: Service Companies
The Maintainers
A modern oil and gas sector needs modern services companies to keep the flows going. The directors of four top services companies talk about their work in the industry.
Dmitriy Solovyov, General Director, Cross Caspian Oil and Gas Logistics
TBY talks to Dmitriy Solovyov, General Director of Cross Caspian Oil and Gas Logistics, on the opportunities presented by the Caspian-Black Sea energy corridor.
Priority Shift
The industrial sector is developing with a new sense of urgency, as new projects seek to find their competitive niche internationally.
M. Ahadpur Khangah, Chairman, Caspian Fish Co
TBY talks to M. Ahadpur Khangah, Chairman of Caspian Fish Co, on the Azerbaijani fishing industry, preserving sturgeon stocks, and the caviar business.
Suleyman Mammadov, General Director, Baku Steel Company
TBY talks to Suleyman Mammadov, General Director of Baku Steel Company, on the regional steel industry, increasing capacity, and the outlook for exports.
Sarkhan Babayev, Director, Det.Al Holding
TBY talks to Sarkhan Babayev, Director of Det.Al Holding, on its aluminum output, the local metals industry, and opportunities for foreign investors.
Michael Gerlich, CEO & Chairman of the Executive Board, Synergy Group
TBY talks to Michael Gerlich, CEO and Chairman of the Executive Board at Synergy Group, on the group's wide subsidiary portfolio and expectations for the future.
Elshad Abbasov, General Director, Embawood
TBY talks to Elshad Abbasov, General Director of Embawood, on furniture manufacturing, distribution, and retail, as well as the importance of boosting "Brand Azerbaijan."
Review: Mining
Below Terra Firma
While gold mining draws the most attention, Azerbaijan's deposits of alunite and iron ore are becoming the real focus of attraction.
Reza Vaziri, President, Anglo-Asian Mining
Weaving the Fabric
A call has been issued for private investment in the ICT sector, and high returns are attracting the attention of both domestic and foreign investors, as penetration rates and technological uptake continue climbing.
Ali M. Abbasov, Minister of Communications & Information Technologies, Republic of Azerbaijan
TBY talks to Ali M. Abbasov, Minister of Communications & Information Technologies, on FDI in the IT sector, the country's first communications satellite, and the goal of developing an ICT hub.
Jurgen Peetz, CEO, Azerfon
TBY talks to Jurgen Peetz, CEO of Nar Mobile, on the company's growth, its contribution to the telecoms sector, and prospects for 4G.
Richard Shearer, CEO, Bakcell
TBY talks to Richard Shearer, CEO of Bakcell, on the effects of 3G, 4G prospects, and expectations for mobile number portability.
Ali Ağan, CEO, Azercell
TBY talks to Ali Ağan, CEO of Azercell, on its contribution to the mobile sector and the need to gear up for Eurovision 2012.
Ramazan Valiyev, Director, Delta Telecom
TBY talks to Ramazan Valiyev, Director of Delta Telecom, on establishing high-speed network infrastructure and developing a data center.
Vox Populi: Infrastructure
Watching the Connectors
A significant sector for the economy, firms are rushing to prepare the infrastructure to launch Azerbaijan into the future as an ICT hub for the region.
Jayhun Mollazade, CEO, AzQtel-SAZZ
TBY talks to Jayhun Mollazade, CEO of AzQtel-SAZZ, on the inception of the company, WiMAX technology, and local internet penetration rates.
Focus: Europe-Persia Express Gateway Project
The Woof & Warp
Europe and the Middle East will never have been so well connected when the Europe-Persia Express Gateway (EPEG) project is put into operation in May 2012.
B2B: IT
A burgeoning IT sector is being driven by local companies and foreign partnerships.
Fazil F. Abbasov, General Director, AzerNews
TBY talks to Fazil F. Abbasov, General Director of AzerNews, on the evolution of the paper, the media landscape, and press freedom.
From Point to Point
Azerbaijan is pulling out all the stops in 2012 to modernize its transport infrastructure through regional and domestic projects.
HE Ziya Mammadov, Minister of Transport, the Republic of Azerbaijan
TBY talks to Ziya Mammadov, Minister of Transport, on the Baku-Tbilisi-Kars railway project, the Europe-Caucasus-Asia transport plan, and the new Intelligent Transport Management Center.
Jahangir Askerov, President, AZAL
TBY talks to Jahangir Askerov, President of AZAL, on passenger numbers, the Eurovision boost, and future investment plans.
Arif Asgarov, Chief, Azerbaijan Railways JSC
TBY talks to Arif Asgarov, Chief of Azerbaijan Railways JSC, on the upgrade program for the rail fleet, and the role of Azerbaijan in the TRACECA network.
Javid Gurbanov, Azeryolservis, Chairman
TBY talks to Javid Gurbanov, Chairman of Azeryolservis and Deputy in the Azerbaijan National Assembly, on Azerbaijan's road network, safety issues, and joint projects to develop the international transport network.
Focus: Baku's New Port
A Place on the Sea
Baku's already thriving port is moving to a new location at the junction of the East-West and North-South transport corridors. Ready in 2014, the port is set to transform Baku's maritime logistics business.
Faig Safarov, President, KIA Motors Azerbaijan
TBY talks to Faig Safarov, President of KIA Motors Azerbaijan, on its activities in the country, successful models, and the importance of after-sales services.
Let's Go Steady
The Baku real estate market is beginning to show signs of price stability, with buyers beginning to resurface in the market.
Emin Agalarov, Vice-President, Crocus Group
TBY talks to Emin Agalarov, Vice-President of Crocus Group, on his business ventures, expectations for 2012, and the Eurovision Song Contest.
Haji Ibrahim Nehramli, President, Avesta Concern
TBY talks to Haji Ibrahim Nehramli, President of Avesta Concern, on his ambitious Khazar Islands New City project.
Loaded with ambition, new construction projects are set to turn Baku into the Dubai of the Caspian region.
Faik Rzayev, General Director, Encotec
TBY talks to Faik Rzayev, General Director of Encotec, on its main operations, major projects, and foreign operations.
Azad Ibrahimov, President, ANT Group of Companies
TBY talks to Azad Ibrahimov, President of the ANT Group of Companies, on the construction sector, overseas experiences, and the outlook for the future.
Kamil Aliyev, Director, AzVirt LLC
TBY talks to Kamil Aliyev, Director of AzVirt LLC, on its flagship projects, construction materials, and going international.
Khalig Ismayilov, President, Safe Life
TBY talks to Khalig Ismayilov, General Director of Safe Life, on improving fire safety conditions in Azerbaijan.
B2B: Construction Materials
Construction materials are a major growth generator in Azerbaijan, and both foreign and domestic investors are getting in on the action.
Green Me Up
Rural development remained key to economic diversification plans in 2011, boosted by fertile lands that are productive all year round.
Abdolbari Goozal, Azersun, Chairman
TBY talks to Abdolbari Goozal, Chairman of the Board at Azersun Holding, on domestic and international demand, the FMCG market, and foreign growth opportunities.
Focus: Aquaculture
At a time when the many varieties of Caspian Sea fish are in high demand, the protection of aquaculture resources is of growing importance.
Aydin Mehdiyev, Owner, Delta Group
TBY talks to Aydin Mehdiyev, Owner of Delta Group, on expanding production, imports and exports, and expectations for the FMCG sector.
Focus: Dairy
Udder Transformation
With international companies geared to increase local production and factory operations underway, the dairy industry is poised to expand.
Elshad Rasulov, Chairman of the Board, Atropatena
TBY talks to Elshad Rasulov, Chairman of the Board at Atropatena, on supporting its brands, working with Danone, and expanding its dairy activities.
SOCIAL, HEALTH & EDUCATION
Shot in the Arm
The healthcare system underwent changes in 2011 as a result of reform and centralization, and the pharmaceuticals sector is improving distribution and access.
Fizuli Alekperov, Minister of Labor & Social Protection, Republic of Azerbaijan
TBY talks to Fizuli Alekperov, Minister of Labor & Social Protection, on key reforms, the eradication of poverty, and the Azerbaijani workforce.
Elshad Abdullayev, General Manager, Avromed
TBY talks to Elshad Abdullayev, General Manager of Avromed, on the company's evolution over the past decade and current trends in the pharmaceutical distribution and retail sector.
The Midas Touch
The education system is throwing off the shackles of the past and looking abroad for inspiration.
HE Misir Mardanov, Minister of Education, the Republic of Azerbaijan
TBY talks to Misir Mardanov, Minister of Education, on the evolving Azerbaijani education sector.
Gular Ahmadova, Deputy of the Azerbaijan National Assembly, the 2nd Khatai District
TBY talks to Gular Ahmadova, Deputy of the Azerbaijan National Assembly from the 2nd Khatai District, on children's rights, EU relations, and hosting international events.
Prof. Dr. Ahliman Amiraslanov, Rector, Azerbaijan Medical University
TBY talks to Prof. Dr. Ahliman Amiraslanov, Rector of Azerbaijan Medical University, on reforms to the higher education system and the positive role of international students and exchange programs.
TOURISM & SPORTS
Open All Seasons
On the heels of the "Year of Tourism," Azerbaijan looks set to become a serious contender on the alternative holiday scene as it gears up to host Eurovision 2012.
HE Abulfas Garayev, Minister of Culture and Tourism, the Republic of Azerbaijan
TBY talks to Abulfas Garayev, Minister of Tourism, on key targets and reforms, Eurovision 2012, and upmarket tourism.
Azad Rahimov, Minister of Youth & Sports, Republic of Azerbaijan
TBY talks to Azad Rahimov, Minister of Youth & Sports, on the Year of Sports, the Olympic bid, and ministry initiatives.
Focus: Sports
The Hunt for the Flame
With a renewed commitment to athleticism and improved infrastructure, Baku is working hard to secure the 2020 Summer Olympic Games.
Elkhan Mammadov, General Secretary, Association of Football Federations of Azerbaijan
TBY talks to Elkhan Mammadov, General Secretary of the Association of Football Federations of Azerbaijan, on the role of the body, the FIFA U-17 Women's World Cup, and the success of FC Karabakh.
Vox Populi: Hotels
A growing hotel industry is gearing up for the Eurovision Song Contest 2012 and hoping for long-lasting benefits.
Focus: Carpets
The Geometry of Life
Striking in design and breathtaking in workmanship, Azerbaijani carpets reached their pinnacle after thousands of years of production in the region and are currently undergoing a colorful revival.
Prof. Vidadi A. Muradov, Director, Azer-Ilme
TBY talks to Prof. Vidadi A. Muradov, Director of Azer-Ilme, on the production of traditional Azerbaijani carpets.
Serhat Bash, General Manager, C Hotels & Resorts
TBY talks to Serhat Bash, General Manager of C Hotels & Resorts, on the luxury hotels business, building a city brand, and Eurovision 2012.
Focus: Eurovision 2012
Winning the Eurovision Song Contest is an accomplishment that comes with the privilege of staging the event. For Baku, it could not be better timing.
Jon Ola Sand, Executive Supervisor, Eurovision Song Contest
Jon Ola Sand, Executive Supervisor of the Eurovision Song Contest, on gearing up for the contest, and Azerbaijan's credentials as a host.
Roza Asanbaeva, President, Kazakhstan Tourist Association
TBY talks to Roza Asanbaeva, of the Kazakhstan Tourist Association, on efforts to transform the local tourism industry by emphasizing its natural assets.
Factors foreign companies should consider when looking at possible investments in Azerbaijan.
Number Crunch
Understanding Azerbaijan's straight-forward tax code is the first step to doing smart business in the country.
Beyond the Surface
TBY talks to Allen Gordon, General Manager of AIMROC, on the potential to uncover vast gold or other mineral and metal resources in the area around the Chovdar mine.
Manufacturing has become an engine for employment and a significant part of the country's private sector-driven diversification efforts.