16/02/2023 15:00
On February 16, 2023, the press briefing on the construction of an industrial explosives plant was held at AzerBlast Limited Liability Company (LLC), a subsidiary of AzerGold Closed Joint Stock Company.
Speaking to the press, the executive director of "AzerBlast" LLC Rizvan Bakhshiyev gave detailed information about the project and drew attention to the fact that the production of industrially important explosives was launched for the first time in our country.
Underlining the main goal of the establishment of the plant, which is being built in Ganja, Rizvan Bakhshiyev stated that it will not only meet the demand for civil explosives in mining and other industries but also eliminate the dependence on imports by ensuring a continuous supply chain of mining and construction enterprises and offer opportunities to create of new jobs in the region.
He emphasized that the construction of the plant with the annual production capacity at 31,000 tons is planned to be completed and brought into service by the end of this year. The enterprise to be built on the basis of modern production technologies, will produce explosives used in the mining and construction industry, such as H-ANFO, ANFO.
With reference to the total project cost amounting to 14 million manats, Rizvan Bakhshiyev mentioned that approximately AZN5.5 million will be spent on construction works, while AZN4 million will be allocated on the purchase and installation of equipment. Other funds will be directed to operational costs within the Project.
Notably, according to the financial model of the project, Net Present Value (NPV) was calculated as AZN2.6 million, while the Internal Rate of Return (IRR) was calculated as AZN 24.3%. Upon the operation of the plant with its full capacity it will be possible to get the return on the investment in 5.3 years. The total income calculated for the first 6 years of project operation is AZN90 million.
It was brought to the attention of the media representatives that in the following years, sales revenues will be further increased upon the production at a high pace against the background of domestic and foreign demand growth for industrially important explosives, and ensuring the long-term, uninterrupted, and continuous operation of the enterprise.
