Copper trucks, not diplomats, may end up blazing the first reliable path between Baku and Yerevan. As Anglo Asian Mining PLC (AAM) and other investors unlock Karabakh’s rich ore seams, the economic pull of moving metals to market is fast becoming the strongest argument for a cross-border corridor.

MINING COMPANIES LOOK FOR EXTRACTION OPPORTUNITIES IN KARABAKH

The recommencement of industrial activity in Azerbaijan’s Karabakh Economic Region is spearheaded by AAM, whose July 2025 commissioning of the Demirli open-pit copper mine marks the second new asset it has brought online this year.

Demirli is slated to deliver 4 000 t of copper concentrate in 2025 and to scale quickly to 15 000 t pa from 2026, supported by a newly recruited 150-strong local workforce and upgraded flotation facilities.

The mine’s restart is emblematic of a broader rush. More than 150 known deposits in Karabakh, ranging from gold at Zod and Gyzylbulag to mercury at Agyatag and lead-zinc at Mehmana, are now drawing investors who were previously deterred by conflict-related access risks.

AAM’s production-sharing agreement amendments (2022) unlocked three contract areas in the former conflict zone, underscoring Baku’s strategy of pairing security gains with rapid commercialisation.

Simultaneously, Azerbaijan’s updated 2023 bidding rules welcome foreign firms into open tenders for ore deposits, intensifying legitimate competition while suppressing the shadow extraction networks.

The convergence of legal clarity, ESG-driven project vetting (AAM secured its first Digbee sustainability rating in June 2025) and demonstrable resource scale is turning Karabakh into the country’s new mining growth pole.

EXPORT OF MINERALS OPENS A FUTURE OUTLOOK FOR INFRASTRUCTURE DEVELOPMENT

Large-volume copper and precious-metal exports demand reliable, high-throughput logistics, and this commercial imperative is redefining regional connectivity. Moving ore, reagents and heavy equipment between Karabakh and world markets currently relies on the Baku–Tbilisi–Kars corridor, adding time and cost. A revitalised transport artery would cut haulage distances by roughly 340 km, trimming unit export costs and increasing the net-back value of Karabakh concentrates.

For Azerbaijan, guaranteed mineral flows strengthen the economic case for investing in new rail and highway spurs from Demirli and other deposits to the Armenian border. For Armenia, transit fees and the prospect of integrating its own Zangezur Copper Molybdenum Combine / ZCMC into a shorter supply chain create tangible incentives to cooperate.

The multiplier effects are significant: every direct mining job supports two to three ancillary positions, stimulating demand for power lines, customs terminals and digital networks.

Map: Anglo Asian Mining’s Contract Areas in Azerbaijan. Source: Azerbaijan International Mining Company Limited.