Azerbaijan earmarks $3.1 billion for mining and metals expansion through 2030
The latest state program targets aluminum, gold, and copper processing as President Aliyev pursues economic diversification away from oil dominance.
Azerbaijan has approved a 2027–2030 State Program for the Development of Mining and Metallurgical Industries with estimated investment of 5.3 billion AZN (approximately $3.1 billion), according to a September 22 presentation chaired by President Ilham Aliyev. Roughly 80% of this investment is expected to come from private sources, with the remainder from the state budget. The program targets expansion of aluminum electrolysis capacity at Azeraluminium's Ganja plant from around 50,000 tonnes per year to 100,000 tonnes by 2030, alongside development of new rolled aluminum capacity. Separately, Azerbaijan is exploring a new primary aluminum smelter with capacity of around 200,000 tonnes per year, which has attracted interest from foreign investors. The program also includes assessment of the Zaylik alunite deposit as a potential domestic raw-material base for aluminum production. Non-oil exports have already begun shifting: through July 2026, non-oil-and-gas exports reached $5.93 billion, reflecting a 2.8-fold increase compared to the same period last year. Mining and metallurgy exports are projected to increase 2.6-fold by 2030 under the program. While oil and gas will remain the country's primary export pillar, the strategy positions processing sectors as key drivers of added value and export revenue growth as part of Azerbaijan's broader "2030" diversification framework.
How could this affect you
Traced by who's actually in the path of this — not everyone is.
Possible
Global aluminum buyers
If Azerbaijan scales production at Azeraluminium and launches a 200,000 t/y primary smelter, it could increase regional aluminum supply and potentially affect prices and competition, particularly for European and Central Asian buyers benefiting from competitive energy costs.
Likely
Foreign investors in Central Asian and South Caucasus regions
The $3.1 billion investment program and focus on developing a regional processing hub could attract capital to Azerbaijan's industrial zones and potentially shift investment flows across the Caucasus and Central Asia.
Likely
Azerbaijan's government and sovereign wealth
If non-oil export growth sustains and the mining program succeeds in expanding commodity processing, the country could reduce fiscal dependence on volatile oil revenues and improve long-term economic resilience.
Sources
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