On November 13, 2025, in Beijing, the capital of China, a contract was signed between “Azerbaijan Metal Company” LLC, a subsidiary of “Dashkasan Iron Ore” LLC, and China’s “Sinosteel Equipment & Engineering Co., Ltd” for the preparation of a bank-designated feasibility study (FS) for the construction of a hot briquetted iron (HBI) plant with an annual production capacity of 2 million tons.

The contract was signed by Mr. Jeyhun Aliyev, CEO of “AzMC” LLC, and Mr. Hua Guanglin, CEO of “Sinosteel.”
The total value of the agreement is 1,510,000 USD.

The feasibility study to be developed within the framework of the project is considered a key stage for the construction and operation of the planned HBI plant in the Shamkir district. The FS, which is expected to be completed within four months, will serve as a primary reference document for international institutions and banks in financing the plant construction project. The FS will determine optimal technological solutions for the construction, ensure planning of engineering and construction works, and guide subsequent phases toward full-scale development.

It should be noted that “Sinosteel Equipment & Engineering Co., Ltd” is one of the key subsidiaries of the Chinese state-owned industrial corporation “Sinosteel Group Corporation Limited,” specialized in metallurgical raw material processing, supply, and metallurgical technologies. The company has extensive experience in the development of iron ore deposits and iron ore processing and has implemented various industrial projects both in China and abroad.

The company also provides services in the establishment and management of iron ore processing facilities, including equipment integration, application of advanced technologies, and scientific approaches. By utilizing technologically advanced and environmentally safe extraction and processing methods, the company has ensured efficient resource utilization in countries such as Turkey, Australia, South Africa, Algeria, and India.

It should be recalled that “Azerbaijan Metal Company” LLC was established as a joint venture on September 23 of this year by “Dashkasan Iron Ore” LLC, a subsidiary of “AzerGold” CJSC, and Kazakhstan’s “Fonte GreenMet Investments Fund OEIC Limited.” The enterprise will engage in the financing, design, construction, and future operation of an HBI plant with an annual production capacity of 2 million tons.

The plant to be built in the Shamkir district is expected to be commissioned in mid-2029. The total investment value of the project, which will be implemented using modern and environmentally safe technologies, is approximately 700 million USD. Within the framework of the project, an annual contribution of 694 million USD to GDP is expected, and approximately 1,600 people are planned to be employed directly and indirectly.