Azerbaijan’s HBI plant project enters key phase with feasibility study contract in Beijing Photo

A major industrial project in Azerbaijan has entered a decisive phase with the signing of a feasibility study contract for a hot briquetted iron (HBI) plant planned in the country’s Shamkir district.

On November 13, 2025 in Beijing, “Azerbaijan Metal Company” LLC (AzMC), a subsidiary of “Dashkasan Iron Ore” LLC, and China’s Sinosteel Equipment & Engineering Co., Ltd signed an agreement to prepare a bank-designated feasibility study valued at $1.51 million, Caliber.Az reports via AzerGold. 

The contract was signed by Jeyhun Aliyev, CEO of AzMC, and Hua Guanglin, CEO of Sinosteel. The feasibility study, expected to be completed within four months, will form the basis for securing international financing for the construction of the proposed HBI plant, which will have an annual production capacity of 2 million tons.

The study will determine the plant’s optimal technological configuration, outline engineering and construction requirements, and set out the steps needed for full-scale project implementation. It represents one of the most important preparatory stages before construction begins.

Sinosteel Equipment & Engineering — a key subsidiary of China’s state-owned Sinosteel Group Corporation Limited — brings substantial global experience in iron ore development, metallurgical engineering, and environmentally responsible processing technologies. The company has carried out industrial projects in China, as well as in Türkiye, Australia, South Africa, Algeria, India, and other countries.

AzMC itself is a newly established joint venture created on September 23, 2025 by “Dashkasan Iron Ore” LLC, a subsidiary of “AzerGold” CJSC, together with Kazakhstan’s “Fonte GreenMet Investments Fund OEIC Limited.” The enterprise is responsible for financing, designing, constructing, and ultimately operating the HBI plant.

The facility in Shamkir is scheduled to be commissioned in mid-2029. Total investment in the project is estimated at around $700 million. Once operational, the plant is expected to contribute $694 million annually to Azerbaijan’s GDP and create approximately 1,600 direct and indirect jobs.

By Sabina Mammadli