- What are the trends and the reasons behind them in the non-ferrous market over the past few years?

- The prices of some non-ferrous metals in the world have grown by 50 percent, others by 100, in the last three years. The hike has been relatively small in ferrous metals, but the non-ferrous metals are an altogether different story. This is a rather dramatic increase, considering that a ton of certain metals sells for 80-100 thousand dollars. One of the main reasons behind this is that we are living in a hi-tech era. In the past, in the eras of machines, mechanisms, automation, computers and missiles, these products were produced in limited editions, whereas now they have become mass-produced goods. This requires more semiconductors and electric carriers. The inner linings of rockets are also made of non-ferrous metals, highly increasing the demand for them. Excessive use has already led to a certain shortage. This, in turn, brings about an automatic price boom in the face of growing market demand.

- To what extent and why does the Green Energy agenda bring the issue to the foreground? What should we expect in this context?

- The old industry was primarily based on oil products, which seriously polluted the atmosphere. You probably remember that Sumgait had once become a ghost city. Modern industry, whereas, is based on ‘green energy’, and these systems are based on non-ferrous metals by 90 percent.

Here is a small example. The battery system is the foundation of electric engines and cars. These systems use non-ferrous metals, such as lead, copper, aluminium and even platinum and silver used in rockets. Our country boasts deposits of elements called selenium and tellurium, which used to be a part of coloured glass production. Nowadays these elements make up the surface coatings of solar panels, employed throughout Azerbaijan. I mentioned rockets just now. Orbiting rockets need a two-millimetre titanium coating. The titanium isolates from extreme cold and heat, which is why rocket and aircraft industry employs expensive precious metals. Silver, gold and platinum have a better electrical conductivity than copper. The growth in population, number of aircrafts, production of equipment and rockets, and the expansion of the computer era overall, directly affect non-ferrous metal industry. As demand grows, prices are sure to become more relevant.

- Can the conflict over sanctions between the West and Russia collapse the non-ferrous metal market?

- Certainly so. Even the ferrous metal market is suffering greatly. The price surges stood at 30 percent pre-war, whereas it has hiked to 60 percent since. Russia is rich in metal deposits; it boasts almost a third of the world’s mineral resources. And I don’t mean the ferrous metals. Another end extends to Ukraine. Both the conflict and sanctions have a significant impact on this market and it will continue so. We have started observing shortages in many areas. The sanctions have tilted the balance. If the conflict continues for a long time, prices in the market will change considerably. This, in turn, will have a direct impact on production technologies and equipment.

- Non-ferrous metal production, extraction and processing can cause detrimental environmental challenges. Isn’t it true that ‘green energy’ will also come at a high cost?

- You are perfectly right. For example, I have been to Norilsk in Russia. Until recently this region produced copper, chromium and molybdenum. Naturally, the outdated factories in Russia are more detrimental for the environment compared to industries in Western countries. But I can say in all honesty that the damage caused by ‘green energy’ will not even make up a tenth of the harm produced by motor cars all over the world. The best example to illustrate my words would be the large-scale reconstruction at the aluminum plant in Ganja to prevent dust discharge into the air. AzerGold has set an example of developed special lagoons for collecting harmful substances extricated during development of fields in Dashkesen. The purpose is to prevent them from spreading freely and causing harm to the environment. Simply put, the approach nowadays differs completely from the one employed during the USSR. At a time, when the world is trying to control ecology, I believe, it will not do much harm. And if it does, the damage will be compensated to the fullest.

- What prospects do the non-ferrous metal reserves in Azerbaijan promise the country, particularly in terms of their export and production?

- When we talk about non-ferrous metals, we have to acknowledge that they go hand in hand with ferrous ones. Therefore, I would like to give a more comprehensive answer. There was a large iron-ore processing plant in Azerbaijan as a part of the USSR. We processed iron and sent it to Rustavi, where they produced cast iron. Usually there are precious metals such as nickel and chromium near iron ore fields, which in turn are also in close vicinity to non-ferrous metals. I believe the government will arrive at a suitable decision in this regard. We are currently developing aluminium and operating a plant. 70-80 percent of the commodities is exported. The plant produces aluminium ingots, a semi-finished product.

The price hike affects other areas of economy in the country. Azerbaijan also boasts silver reserves. If a deposit contains gold, there should also be silver, selenium, tellurium, lead and even cobalt nearby. The price surges allow us to continue the existent exploitation of these mineral deposits.

Another crucial point is that most of the research in Azerbaijan dates back to the USSR. Almost 40 years have passed since. The world has developed modern methods of determining mineral deposits. These methods might even let us identify much larger deposits than we thought possible. I assume a working group will function and start researching these issues soon enough.

- Do our liberated territories have potential? What kind of action plan should we follow in those areas in terms of the new identification methods you mentioned?

- Karabakh is indeed rich in natural resources. The ‘Zod’ gold deposit is in Kalbajar and the explorations conducted back in the USSR estimated the reserves at around 112 tons of gold. There are 23 seams, seven of which ran through the territories of Armenia. The rest belonged to Azerbaijan. The Armenians exploited these seams haphazardly during the occupation. However, try as they might, the mines can still produce enough wealth.

There is also the ‘Tutgun’ field in Kalbajar. The gold reserves in the field are hardly exploited and they are estimated at almost 15 tons. Kalbajar alone promises about 300 tons of selenium and tellurium and another 200 tons of silver. This is outdated data from the USSR, which has to be clarified through further explorations.

There are also around 900 tons of lead in Kalbajar, many chromite deposits in Lachin-Kalbajar. The ‘Vejnali’ field in Zangilan is estimated at around 6 tons of gold. It also boasts a 3,000-ton copper deposit. This is not pure ore, I am only citing the amounts that can be processed and produced.

We have substantial gold and copper deposits in Agdere. I assure you that further explorations will reveal numerous resources in Karabakh region, yet unknown to us. The commissioning of these resources will be crucial as we return to Karabakh. Based on the information we have, they are already working in this direction. Our priority now is to develop infrastructure and roads. We have chosen the best possible direction to start working there. Once the communication systems are in place, we will be able to start exploring and developing the fields.

Sahil Isgandarov

AzVision.az

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