A working meeting on the HBI plant construction project was held in Azerbaijan
From 3 to 5 June 2026, a working meeting on the implementation of the project to build a hot briquetted iron (HBI) plant with an annual capacity of 2 million tonnes was held in Azerbaijan. Yerzhan Mussin, CEO of Fonte Capital Ltd, took part in the event.
The project is being implemented through the joint venture Azerbaijan Metal Company LLC (AzMC), established with the participation of Dashkasan Iron Ore LLC (DDF) and Fonte GreenMet Investments Fund OEIC, managed by Fonte Capital Ltd. AzMC is responsible for the financing, design, construction and operation of the future plant.
At the event held on 4 June in Baku, the results of the feasibility study prepared for financing purposes were presented, and documents defining the next stages of the project implementation were signed. The event was attended by executives and representatives of AzMC, AzerGold CJSC, Dashkasan Iron Ore LLC, Fonte GreenMet Investments Fund OEIC Limited, China’s Sinosteel Equipment & Engineering Co., Ltd. and export credit agency Sinosure, Italy’s Tenova and export credit agency SACE, as well as ING Bank.
The feasibility study, prepared by Sinosteel, confirmed the technical and economic viability of the project. According to the document, the total capital expenditure required for the construction of the plant is estimated at approximately USD 800 million.
The plant is expected to be commissioned by the end of 2029. The project is expected to contribute around USD 1 billion to the country’s GDP and create approximately 1,600 direct and indirect jobs. The plant will be built in the Western Industrial Park in the Shamkir district.
A significant part of the required investment is expected to be secured through international credit resources. For this purpose, the export credit agencies of China and Italy — Sinosure and SACE — have been appointed as partners providing export credit insurance and guarantee support for financing, while ING Bank has been appointed as the global coordinator of the process.
One of the key parts of the visit was a meeting between the delegation and Mikayil Jabbarov, Minister of Economy of the Republic of Azerbaijan. During the meeting, it was noted that the construction of the Dashkasan hot briquetted iron plant is among the significant industrial projects that may contribute to the growth of the country’s export potential in the short and medium term.
“We are pleased to be part of a project that is unique for the region both in terms of scale and the structure of international participation. The project brings together key industrial and financial partners, including export credit agencies from China and Italy. There are still several important stages ahead, but we already see a high level of engagement and commitment from all parties involved,” said Yerzhan Mussin, CEO of Fonte Capital Ltd.