AzerGold CJSC to Start Exercising Its Powers Under the Production Sharing Agreement

As known, according to the Law ratified by the Milli Majlis and approved by the President of the Republic of Azerbaijan, Mr. Ilham Aliyev, on June 21, 2024, AzerGold CJSC was authorized to represent the state in the implementation of the Agreement between the Ministry of Ecology and Natural Resources of the Republic of Azerbaijan and American R.V. Investment Group Services LLC for the Exploration, Development, and Production Sharing of Prospective Gold, Copper, and Polymetallic Deposits of Gadabay, Gosha, Khar-Khar, Garadagh, Ordubad group (Piyazbashi, Aghyurd, Shakardara, Kalaki), Gizilbulag, Damirli, and Vezhnali.

The goal is to ensure effective cooperation between R.V. Investment Group Services LLC and the specialized state mining company in the performance of the work under the Agreement. According to the Agreement terms, AzerGold CJSC will satisfy the rights and interests of R.V. Investment Group Services LLC, oversee the efficient arrangement of the activity, ensure cooperation with government bodies in the implementation of mining operations, and fulfill other obligations.

R.V. Investment Group Services LLC will perform the work in the fields of managing deposits, geological exploration, extraction, and production, as well as environmental protection, arrangement of work with local communities, corporate social responsibility, etc., under the supervision of AzerGold CJSC: the latter will ensure compliance of the operator's mining activity with the requirements of local and international law.

The CJSC has already started exercising its duties related to addressing issues arising from the Agreement, arranging effective activity, and determining the requirements of the Agreement in various areas. Thus, in line with these objectives, the Working Group formed under AzerGold CJSC has been charged with conducting a general overview of the existing fields, including infrastructure, analyzing the work performed under the Agreement and the current state, determining the measures to be taken, and formulating proposals within a month. Appropriate measures are also being taken to create a Steering Committee to arrange the activity and control.

It should be noted that the Agreement was concluded on August 20, 1997, between Azergizil State Company of the Republic of Azerbaijan and R.V. Investment Group Services LLC. From January 22, 2000, after the liquidation of Azergizil State Company, the Ministry of Ecology and Natural Resources was considered the legal successor of Azergizil State Company in respect of obligations arising from the Agreement until it is amended.