Anglo Asian Mining (LON: AAZ) has received the green light from the Azerbaijani government to increase the height of its tailings dam wall. This critical approval allows the company to resume normal production at its Gedabek mine, a significant step forward for the gold-silver-copper producer.
In March, Anglo Asian submitted all necessary documents to the government to seek permission to raise the wall of its existing tailings dam, which was nearing full capacity. The proposed increase would add another 7 meters, bringing the wall to its final design height.
Following the submission, the company received technical confirmation and a positive environmental report from the relevant authorities regarding its proposal. The construction design for raising the wall was also given the green light by the corresponding ministry.
With the authorization now in hand, Anglo Asian plans to start work on raising the tailings dam wall immediately. The process will be carried out in two stages, with the first phase involving a 2.5-meter raise expected to be completed approximately three months after receiving the permission.
CEO Reza Vaziri stated that Anglo Asian has already begun mobilizing resources to restart flotation and agitation leaching processing. Full production is anticipated to recommence within a week.
“This marks the end of a year-long disruption, and we look forward to normalizing production,” Vaziri said in a news release. “We also look forward to making swift progress on our strategic growth plan to transition to a multi-asset, mid-tier primarily copper producer by 2028.”
Anglo Asian is expected to issue an annual production guidance for 2024 following the resumption of full production. In the first half of this year, the company produced 5,270 gold-equivalent ounces across its operations in Azerbaijan, a significant drop from the previous year’s 23,391 ounces.
The market reacted positively to the news. Shares of Anglo Asian Mining surged by 7.8% to reach a market capitalization of £106.5 million ($135 million) as of 4:35 p.m. GMT in London.
The tailings dam at the Gedabek mine is a critical infrastructure for Anglo Asian’s operations. Tailings dams are used to store byproducts of mining operations, which can be hazardous if not managed properly. The approval to raise the dam wall is not only a technical and environmental milestone but also a vital operational requirement to ensure the company can continue its mining activities without interruption.
The approval process involved rigorous scrutiny from Azerbaijani authorities, including detailed technical evaluations and environmental impact assessments. These steps are essential to ensuring that the tailings dam’s expansion will not pose any risks to the surrounding environment or communities.
The first phase of the construction involves raising the dam wall by 2.5 meters. This phase is crucial, as it will provide immediate relief by creating additional storage capacity. The subsequent phases will continue until the wall reaches the planned final height of 7 meters. This incremental approach ensures that each step is carefully monitored and managed to maintain the integrity of the structure.
