Anglo Asian inks sales contract with Trafigura for new copper mine

Anglo Asian Mining (LON: AAZ) has contracted the sale of concentrates produced at its newly started Demirli copper mine to global commodities trader Trafigura.

The sales contract includes a revolving prepayment facility of up to $25 million, the Azerbaijan-focused miner said, adding that the first sale will be completed in mid-November.

In July, the company announced the successful commissioning of the Demirli mine in Karabakh. According to company forecasts, Demirli’s production this year is expected to reach 4,000 tonnes in concentrate, but could rise to 15,000 tonnes from 2026 onwards.

Demirli represents the second copper mine that Anglo Asian brought online this year. In May, the group started production at the Gilar underground deposit, which hosts 54,000 tonnes of copper in resources.

The milestones are part of Anglo Asian’s strategy to transition into a primarily copper producer starting in 2029. For nearly 20 years, its focus had been mostly on gold, producing mainly from the Gedabek open pit mine.

Government approvals

In addition to gaining Azerbaijan government approval for Trafigura contract, Anglo Asian said it has also received the necessary licences to operate the processing plant at Demirli, while finalization of the required documentation is ongoing.

The company was also granted a permit to use the existing tailings dam for up to 12 months, during which a second tailings dam will be constructed. The operating lease for the Demirli processing plant commenced on October 1, 2025, Anglo Asian said.

“I am delighted that we have received all the relevant licenses to operate the plant and tailings dam at Demirli, an important milestone as the mine becomes fully operational and increasingly contributes to group production,” Anglo Asian CEO Reza Vaziri said in a press release.

“The obtaining of all relevant licenses together with the Trafigura sales contract enables us to now commence copper concentrate sales and deliver value from Demirli,” Vaziri said.