Azerbaijan has taken a major step toward industrial growth and low-carbon steelmaking through a joint venture with Kazakhstan. Azerbaijan-based Dashkasan Iron Ore LLC and Kazakhstan-based Fonte GreenMet Investments Fund have signed an agreement to build a modern hot briquetted iron (HBI) plant in Shamkir District, according to local media reports. This project represents one of the largest industrial investments in Azerbaijan’s mining and steel industry.
Project overview
The new HBI facility will play a crucial role in strengthening Azerbaijan’s iron and steel value chain. With a planned annual production capacity of two million mt, the plant is expected to be fully operational by early 2029.
Investment and economic impact
The HBI plant will require $700 million in investments, mainly from foreign partners. Key expected benefits include:
- Annual GDP contribution: $694 million
- Direct jobs: 1,600
- Long-term GDP impact: $13 billion
This will significantly boost Azerbaijan’s steel industry and reduce raw material dependence.
Environmental and technological aspects
The plant will use direct reduced iron (DRI) technology, which reduces carbon emissions by up to 60 percent compared to traditional blast furnaces. While natural gas will be used initially, the plant is designed to transition to hydrogen in the future, supporting zero-carbon steel production.
