In order to implement the tasks arising from the Decree of the President of the Republic of Azerbaijan, Ilham Aliyev, dated 20 April 2026 (No. 649), which provides for the transfer of several limestone and sand-gravel deposits located in the Garadagh district of Baku city, as well as in Absheron, Zagatala, Balakan, Oghuz, and Imishli districts to the use of “AzerGold” CJSC, a dedicated Task Force established within the Company has commenced its activities. At the same time, work has begun on establishing the relevant organizational structure within “AzerGold” CJSC to ensure the efficient and coordinated implementation of the tasks arising from the Decree.
The Task Force has developed a short-term action plan aimed at increasing efficiency in the exploitation of non-metallic mineral deposits and ensuring more effective coverage of market demand. Within this framework, close cooperation meetings have been held with representatives of the State Mineral Resources Utilization Agency under the Ministry of Ecology and Natural Resources, and field visits to the relevant sites have been organized.
During monitoring and assessment, preliminary analyses were conducted on the technical accessibility of the areas, existing infrastructure, logistics capabilities, relief features, environmental conditions and raw material reserves. As a result, it was decided to conduct a phased analysis of historical and geological data and start exploration work to clarify the raw material reserve base of the areas and assess the efficiency of the existing fields for exploitation. Geological research work has already begun in accordance with the prepared exploration program for the “Guzdek Mulda” located in the Garadagh district and Absheron district of Baku. It is planned to start relevant work on the Imishli field from June.
For deposits located in the north-western regions covered by the Decree—“Katekhchay I and II” in Zagatala district, “Balakanchay I and II” in Balakan district, and “Aghchay I” sand-gravel deposit in Oghuz district—activities are planned to commence in the next phase.
This phased approach is driven by several factors, including the distance of these deposits from major consumer markets, particularly Baku, limited existing infrastructure, challenging terrain conditions, and higher logistics and transportation costs, which currently present risks to economic viability. In this regard, the approval and implementation of incentive mechanisms provided for in the Decree are considered key to ensuring the successful organization of operations in these deposits. As a state-owned company, “AzerGold” CJSC prioritizes profitability and efficiency in its operations, making this issue of particular importance.
It should be noted that the main objective of the Decree—considered an important institutional reform in the non-metallic mineral resources sector titled “On improving activities in the field of subsoil use (excluding oil and gas), and amending certain decrees and orders of the President of the Republic of Azerbaijan”—is to ensure more transparent, flexible, and efficient management of subsoil resources.
According to the Decree, from 2027 onwards, licensing, expert evaluation, and auction processes are planned to be conducted through the “Digital Ecology” system based on a “single window” principle. This will contribute to the simplification of procedures, strengthening of control mechanisms, and advancement of digital transformation. The reforms are also expected to support more effective environmental protection, sustainable extraction of high-quality raw materials for the construction industry, creation of new jobs, and the development of a more favorable business environment for entrepreneurs.
It should also be noted that this Decree builds upon previous reforms in the management of non-metal mineral deposits. Earlier, in line with the Presidential Order dated 23 December 2024, “AzerGold” CJSC conducted a comprehensive assessment of the sector in 2025 with the participation of the internationally renowned Boston Consulting Group. A series of seminars were organized with relevant government agencies and private sector stakeholders, and market assessments were carried out. During 2025, more than 70 deposits across Baku, Absheron-Khizi, Guba-Khachmaz, Karabakh, East Zangezur, and other economic regions were studied. Based on the findings, proposals for improving institutional governance and the regulatory framework in line with international best practices were prepared and submitted to the Cabinet of Ministers.
